The need to verify the identity of an individual is a process that essentially carried out throughout history. Once our identity is proven, we gain permission for things that would otherwise not be allowed. A person’s bank account is accessible to only that one person using their personal credit card and PIN. An official can enter a building if they have a clearance using an ID card to show you are a part of that company. Entering new countries requires you to present yourself through your documents. The examples go on.
But some individuals find the need to exploit this system we live with. Using another person’s identity one may escape the consequences of crimes they commit, leaving the victim doomed. This crime is particularly called identity theft and leads further to many more crimes possible to execute. An immensely high number of cases of identity frauds such as credit card fraud and tax fraud happen each year costing people and businesses millions and billions in total globally.
If traditional documentation verification and other kinds of old school identity checks are not enough, then what is? While criminals continue to make ingenious advancements coming up with new tactics to commit crimes, what sort of technology can save people from their evil clutches? The answer to all those questions - digital document verification.
What is digital document verification?
Much like its traditional counterpart, the purpose of doing documentation verification digitally is done as customer due diligence that businesses and financial institutes are required to perform in accordance with laws and compliances to watch out for criminals and illegal activities. The only difference here being the use of technology to shape the process to make it smarter, seamless, and more efficient.
Through the use of AI and OCR, a customer’s identity can be proven much faster online in a matter of seconds as compared to performing it manually.
As thieves are capable of utilizing stolen or fake information, the AI-based verification systems are able to catch out on these attempts. This check is highly effective when used during crucial stages where thieves are capable of committing a crime such as during an online shopping checkout or when applying for a credit card using a stolen identity.
How is the digital document verification check performed?
- The customer is asked to present their document of identification which could be their passport, driving license, or national ID card.
- Using their device’s camera, the image of the document is captured. In case the information on the document is not properly readable, they’ll have to try again.
- The AI checks the validity of the document through recognizing the document's holograms or to check for any signs it is a forged or fake photoshopped document.
- Through OCR technology, the information on the document is smartly extracted and is processed into a structured output.
- This information is then verified against their entered user information and global watchlists in order to keep an eye out if the person is a criminal.
- After the information checks out as valid and safe, the person is successfully verified.
The process alternatively could be done including a KYC expert on video call as well, they would walk you through the process and verify each step until your identity is proven.
There comes a lot of benefits that come with utilizing digital document verification. Not only is crime curbed and laws abided, but both customers and businesses also get an improved safe experience where the worry of theft remains lower than ever before. With the world leaning closer towards technology day by day, this procedure may become the new standard that fits right in a streamlined, secure and efficient future.
Last updated:9/21/2020 11:35:32 AM