Document Check
Elevated demand for online or remote transactions was the result of technological advancements and intensive use of Internet services. This digitization brought many facilities to both customers and businesses. Eliminating the need for any physical interactions, customers could complete their transactions with the ease of home. Businesses expanded their services globally with cost-efficient methods. Meanwhile, imposters also made use of technology and developed new techniques for carrying out fraudulent activities. In a report, published by Statista Research Department on Sep 26, 2023, it was declared that more than 31,000 cases of scams were reported in Singapore in 2022. The number of such crime cases had increased year-on-year, contributing to a rise in the crime rate in the country. In this blog, we will explain how a document verification can be helpful to businesses in combating fraud and forgeries.
Document Verification: A Quick Reference
Document verification is a set of procedures that are carried out by businesses to verify the identity of their customers by validating the authenticity of their documents. This process confirms that the document provided by the customer is real, genuine, and belongs to the person who claims to be the owner of it. It is necessary for businesses to comply with the regulations of Know Your Customer (KYC), anti-money laundering (AML), and counter terrorism financing (CTF) to avoid any financial or reputational loss. Customer onboarding experience is also enhanced by the implementation of an effective document verification process. Traditionally, document verification was done physically by submitting documents to the organization in person. Nowadays, a shift towards online transactions needs a solution or document checker that can perform the document verification process quickly, efficiently, and securely.
Online Identity Check
A series of checks is performed to complete the document verification process remotely or online. The selection of checks depends upon the requirements of the industry and the types of documents verified. An online identity check confirms that an individual is who he claims to be. It prevents imposters from stealing the identities of other persons and committing other types of cybercrime. It verifies the user identities in just a few minutes. The whole process can be fragmented into the following successive steps.
Data Collection
The preliminary information about the user is collected at the start of the process. It consists of the user name, address, and identity card number. The user is then asked to upload the image of some documents needed to verify their identity, along with a clear selfie. Documents that are commonly required for identity verification are as follows:
- Identity Documents: These documents may include identity or social security cards, birth certificates, driving licenses, and passports.
- Educational Documents: These documents may include certificates, degrees, and transcripts awarded by authorized institutions.
- Employment Documents: These documents may include payslips and employment contracts that provide information about the employment history of the user.
- Address Documents: These documents may include credit or debit card statements, rental agreements, and utility bills.
- Financial Documents: These documents may include income tax returns, property tax papers, and bank statements.
- Legal Documents: These documents may include divorce papers, lease papers, and other contracts.
Data Evaluation
Firstly, the document checker performs different types of checks to verification of documents for the confirmation of their authenticity and legitimacy. The following features are checked to detect any kind of fraud or forgery.
If the document is complete and not missing any page or relevant information.
If there is any sign of photoshopping, alteration, or cropping.
If stamps, holograms, MRZ codes, and rainbow prints are present on the document
After confirming the authenticity of the document, the required data is extracted from the document through optical character recognition (OCR) technology. This data is compared with the information provided by the user, and the selfie is compared with the photograph extracted from the identity document. If both match, the process declares the documents verified.
Data Verification
After the successful verification, the user is provided a message about the validation of identity.
How A Document Check Can Be Beneficial to Business
Different businesses are required to verify documents of different types depending on the nature of their services. However, an efficient document checker makes the verification process foolproof for a wide range of businesses. Banks, insurance companies, financial institutions, the travel industry, the healthcare industry, and fintech companies can benefit from it. It makes the customer onboarding process simple, fast, and secure. It protects businesses from identity theft, fraud, and other criminal activities. It helps businesses in KYC and AML compliance.
Key Takeaway
In this digital landscape, an efficient document check is essential for businesses to verify documents online in a span of a few minutes. It helps businesses to streamline their operations and enhance customer onboarding experience. The robust defense provided by it against fraud, forgeries, and other illegal activities makes it vital for KYC and AML compliance.
