The fact is not hidden that identity thefts are rising and online businesses are the most vulnerable. As per a report, the frauds have experienced a significant increase of 29%. Businesses are facing a huge menace due to the criminals’ activities. Especially since they transformed from traditional to online processing. Alongside this, the number of fake transactions and data branches has also skyrocketed.
Online document verification services are providing a solution to these problems. It is backed by advanced technologies like artificial intelligence and machine learning. The system uses these encrypted OCR technologies to authenticate customers’ identities by verifying their government-issued documents. Document verification has numerous benefits like accurate and less time taking verification.
Digital KYC Verification – Documents for Customers Identity and Address Authentication
Online document verification is a reliable solution for industries like finance, e-commerce, healthcare, and others. That is so because they are required to be sure of the customer they are onboarding. The central governments have made this a regulation. Therefore, the platforms can use certain original documents to verify their clients in time and adhere to the KYC compliance.
- Govt-issued identity card with Picture
- Drivers License
- Green Card or Passport Card
- Credit or Debit Card
Alongside identity documents, platforms also require proof of address to authentically verify the claim of customers that they are the same as they said. The below-mentioned documents are required as proof of address.
- Bank Statements
- Credit Card Bills
- Utility Bills
- Rental or Ownership Agreement
- Insurance Papers
- Employment Letter
- Tax Invoices
There is another requirement for these documents and it is that the documents should not be older than 3 months. After the customers upload these documents, OCR extracts the data needed. The businesses use required information for online document verification. The data extracted includes full name, date of birth, nationality, residential address, document number, and photo of the customer. Moving further, an AI-backed system runs the scan and authenticates identities in minimal time. Hence, the benefits of new verification technology are worth mentioning.
Benefits of Using Digital Identity Document Verification for Businesses
As per the “Digital Identity and Document Verification Market and Technology Analysis and Forecasts 2019-2024” report, the worth of document verification services is predicted to cross $15 billion by 2024. There are several benefits that it possesses and in turn, they are fueling its growth. Firstly, it prevents fraud, secondly, it ensures security along with compliance, thirdly and most importantly it enhances the customers’ experience.
Ensure Customers Due Diligence Compliance
The document verification process is not just a mere approach to prevent fraud but it is a part of regulatory compliance. These include General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA). Moving on, growth of this industry is also driven by Customer Due Diligence (CDD) regulations.
Online document verification services use four steps by which they authentically identify the clients.
- Asks the customers that is it them that they are claiming to be
- Verifies authenticity of provided identity documents
- Identifies if the businesses can continue to assist the client
- Ensure due diligence and verify the customer’s data
Lastly, the system checks the identity and matches it in the database.
Prevent Fraud and Onboard Authentic Clients
The business progresses, identity verification becomes crucial for smooth processing. Customers are more likely to abandon the process if there is no visible security assurance. Therefore, online identity document verification can address all these issues by ensuing increased client confidence. Moreover, it leaves minimal loopholes and involves fewer errors as compared to manual verification.
Provides Accuracy and Convenience
If platforms have low processing, customers are more likely to abandon the idea of onboarding. Similar to how they do during manual verification because it is slow, less accurate, and tedious. However, by using document verification services businesses can quickly identify clients with improved accuracy. Also, the process is simple, customers are asked to upload their real-time photos alongside identity documents. They can do this by simply using their cell phones or other devices.
Digital document verification works behind a curtain and identifies customers. The services analyze documents and information in them. Therefore, businesses can make sure that they are dealing with authentic clients. By employing artificial intelligence and machine learning services, businesses can prevent fraud and ensure privacy. So much so, they will be less prone to criminal activities and spread their services across the globe. Hence, these solutions are the answers for businesses to their question “how to verify documents online”.