To carry out a secure document verification process, identity documents like passports, national IDs, utility bills, and tax statements are required. Verification prioritizes documents with an original photo of the user to eliminate impersonation risks and ensure foolproof identity verification.
In 2019, the losses incurred from identity theft amounted to $502.5 billion. In 2020, these losses increased by 42%, reaching a total of $712.4 billion. It is projected that these losses will continue to rise in 2021, reaching a total of $721.3 billion.
What is the Operational Procedure for It?
To execute a document verification procedure, three primary steps must be taken, which are outlined below:
- User Information Submission
Initially, the user is prompted by the document verification system to provide their personal information. They can do this by scanning their identity document using their smartphone camera or webcam, generating an image of the document and their photo. Additionally, the user must submit a selfie to validate their identity further.
- Credential Assessment
The user’s submissions are thoroughly examined to verify their authenticity. The document is inspected to ensure that it is an original, unaltered and authentic document without any indications of tampering or falsification. Furthermore, the photo on the identity document and the selfie submitted by the user are compared to confirm their likeness.
- Verification and Outcome
After successfully evaluating the user’s credentials, the document verification system shares the outcome with the client regarding validating the user’s identity.
Components of Document Verification
When verifying the authenticity of a document, it is checked against various parameters such as holograms, rainbow prints, MRZ codes, document edges, signs of tampering, and evidence of digital alteration. However, some documents are not considered valid during the authentication process.
- Illegitimate Documents
Illegitimate documents are fraudulent and have no validity, as they are not authorized or issued by any government authority. These documents do not contain official stamps, holograms, or signatures that could prove their authenticity.
- False Documents
These documents are another individual’s property and may have been physically stolen or accessed electronically. Scammers may attempt to utilize these documents to bypass security measures.
- Modified Documents
These are documents that are technically valid but have been manipulated or edited. It includes altering the date of birth or address without proper authorization from the government.
- Identity Verification
To prevent identity fraud, online businesses verify the user’s information by comparing the details on their identity document with the information provided during registration. This helps ensure that the user’s identity is genuine and minimizes the risk of fraud.
Why Document Verification and Authentication is Crucial?
- Automated Identification
Automated document verification has made manual identity verification obsolete, providing significant cost and efficiency savings.
- Identity Theft Prevention
Through online document verification, organizations can protect clients’ identities from unauthorized access and fraudulent activities.
- Remote Customer Onboarding
Document authentication for remote customer identity verification is highly reliable. It utilizes sophisticated solutions to identify potential security risks or differentiate between safe customers and potential threats during the onboarding process.
- AML and KYC Obligations
Document verification is a crucial tool for fulfilling critical KYC and AML obligations in preventing cybercrime.
- Age Authentication
Age-restricted service providers utilize digital verification of identity documents to ensure their clients meet the required age limit.
Which Sector Can Benefit from Document Verification?
The following industries can use document verification to streamline their operations:
- E-commerce stores
- Healthcare Industry
- Insurance firms
- Banking Institutes
- Real Estate businesses
- Sharing economy
- Cryptocurrency exchanges
- Legal sector
- Travel industry
Multiple Forms of Document Verification
- Education Certificate Verification
In this particular class, the objective is to verify an individual’s credentials and details related to their claimed educational qualifications. The process of verifying educational credentials typically includes the following:
- Verifying a copy of the degree passing certificate
- Verifying a copy of the degree mark sheet
- Confirming the year of graduation
- Validating the registration number or roll number
- Address Verification
The verification process for a candidate’s place of residence entails evaluating different factors, such as their residential address, duration of stay, residential status, and type of accommodation.
- Database Verification
When assessing an applicant’s relevant information, various databases are utilized to check for specific details. These include criminal records, civil litigation records, regulatory authorities records, serious and organized crime records, and web and media searches.
- Certificate Verification
The verification process involves confirming the award date of the professional license/certificate and checking its current status.
- Driving License Verification
To confirm one’s identity, one’s required to furnish a driver’s license issued by the government after a comprehensive verification process of the individual’s credentials.
Digital document verification is essential in preventing identity fraud and protecting individual personal information. Implementing robust document verification procedures can assist organizations in streamlining their operations, fulfilling their KYC and AML obligations, preventing cybercrime, and providing a secure and efficient user experience.
In the wake of automation and remote customer onboarding, document verification has become indispensable to various industries, including e-commerce, healthcare, insurance, banking, and real estate. It is critical to adopt dependable and robust document verification processes to maintain a trustworthy and secure digital ecosystem and prevent fraudulent activities.