In today’s technologically advanced society, customers demand instant sign-ups, document attestation, and improved data security. Therefore, it is now necessary for modern industries to offer convenience and satisfy client expectations. If they don’t, they risk having a negative impact on their integrity and ability to retain customers. Innovations increase opportunities for fraud, including identity theft, unauthorized onboarding, and data breaches, but they also increase the likelihood of these incidents happening.
Industry-specific misconceptions about identity document verification services, such as the idea that they only offer customer identification, have emerged. Instead, these solutions enhance the customer experience while providing remote onboarding and improved data security. The blog provides all the information businesses should know about AI-powered identity document verification solutions and how they can improve id document authentication constraints.
Identity theft is undoubtedly a terrible crime. The act of stealing someone’s identity in order to take advantage of the benefits it offers or harming the victim’s reputation in order to cause harm is known as a crime. Cybercriminals can use different methods to control their targets. For example, after stealing their identity, hackers can take over their bank accounts for financial benefits or use social media channels to bully them.
How do the legal authorities work to resolve their Onboarding issues?
All the legal authorities are working to implement new intelligent methodologies to prevent identity fraud. They are now encouraging the integration of proper identity document verification modules into businesses.
Identity theft is classified as a crime with harsh fines and penalties for offenders under the Identity Theft and Assumption Deterrence Act of 1998 (ITADA). Identity theft carries a 15-year prison sentence and the confiscation of all tools used in the crime, according to the US Department of Justice.
The identity document verification service will play a critical role in order to combat identity theft and other digital fraud. Any fraudster that attempts to bypass the security protocols of the businesses will be instantly highlighted by the system.
The Significance of Identity Document Verification
AML/KYC regulations put into effect by international regulatory organizations like FATF combat worldwide digital fraud. All businesses must make sure that everyone is following the rules as per the regulations, or else they risk facing severe penalties. According to the AML standards, in order to combat the rise in fraud cases. It is essential for industries to carry out appropriate due diligence procedures on their clients.
There are two distinct review processes: customer due diligence and enhanced due diligence (CDD & EDD). The first one is fundamental and is completed by all onboarding customers, whereas the second one is more thorough and is completed by high-risk clients.
Complete command of the identity document verification process is crucial for all companies to stand against fraudsters. The technological revolution has made things simpler than they were in the past. The effectiveness and accessibility of identity document verification services for remote users have improved with the application of AI and ML algorithms.
Process Followed for the Identity Documents Verification
Businesses are now taking high advantage of identity document verification solutions incorporated with artificial neural networks (ANN). Below are the steps to follow these integrations.
The identity document verification software instructs the users to submit their ID documents. However, it requires a clear selfie to get clear results in real-time for extensive authentication.
Optical character recognition OCR extracts data from documents using this software, which then enters it into the appropriate categories in the database.
The AI-powered software also verifies the documents’ authenticity using a number of markers. Only authentic documents issued by the government have such unique features. The application is a waste if the software detects any manipulation. Customers only see the final verification results in cases where the records are real.
Customers need to be aware that the AI-powered identity document verification system inspects the documents for any unusual features, such as holograms, rainbows, or special inks or paper. In contrast to conventional methods, the AI-powered system can identify manipulation at the micro level.
Wrapping it up
Last but not least, using an identity document verification system will protect the clients from dishonest people attempting to defraud them. It will only permit data from legitimate documents to enter the companies’ databases. A practical strategy for all industries, particularly the banking and healthcare sectors, is the implementation of identity document verification services. This API is time-saving and resource-effective. ID document authentication has given peace of mind to businesses in terms of protection against fraudsters. As a result, the system makes sure that AML/KYC businesses are following the rules and that customers have a positive experience.