Online Customer Verification – Seamlessly Busting Document Fraud

As attackers develop new strategies for exploiting established security measures, identity theft is rising daily. One of the most common methods that con artists employ is document fraud. They misuse the resources of the organizations by getting access to their networks. The bypass operation is granted after submitting false documents to the verifying system. Financial institutions comply with digital KYC regulations to combat document fraud. Individuals are verifying their identities globally with the documents issued by the national authorities of their country. As the world is becoming digital, a number of online document verification certificates serve as a representation of online identities. First, let’s define document fraud before we understand how online document verification systems work.

What is Document Fraud?

When someone commits document fraud, they fabricate new documents or alter existing ones to take on a new identity. The online systems are then used improperly and illegally using this identity. False documents are created to circumvent the system’s security precautions. Attackers breach vital online infrastructure, including financial platforms and other social media systems, in order to steal user identities and transfer money. To prevent these attacks, the government has created strict laws. The attackers use a variety of techniques to commit document fraud.

Counterfeit Documents

Those attackers create exact replicas of official documents without verifying their authenticity with the authority or provider.

Photoshopped Documents

By adding or changing data contained in those credentials, attackers modify the original documents using this method of document fraud.

Pseudo Documents

A complete replica of the original document is used to create pseudo documents. These documents are not recognized by any institute or organization.

Digital Document Verification Process

Online document verification is time-saving and efficient compared to traditional methods. Businesses can significantly shorten the verification process cycle by implementing new technological advancements like artificial intelligence (AI) and machine learning. Users and clients are verifying their identities online during the onboarding phase by the companies using the online verification system. In accordance with AML/CFT laws and KYC compliance, the online document verification process is created. Users can verify themselves online using an online document verification system that involves a variety of processes.

Upload Documents

Uploading digital files of document copies into the online system is a common practice, which typically involves photos taken with a mobile camera. Uploading the documents to an organization’s system is the first step. The organization’s system performs document verification checks in the next step to verify the document’s credibility.

Evaluation of Document Credibility

The new computing terminology is used in the development of online document verification systems. The document validation and forgery detection capabilities of artificial intelligence systems are effective. In order to learn about genuine document patterns and types, the system processes thousands of document data sets. This process of machine learning is performed on the uploaded documents by the user. By comparing these documents with the existing data sets, the system processes and validates the document images.

Verification of Documents

After the documents have successfully undergone validation, they move on to the verification step. The optical character recognition technology used in the verification process is improving day by day. OCR technology is in charge of extracting the text from the papers that needs to be verified for authenticity. Data is extracted from the papers, and its accuracy is checked by comparing it to the user’s credentials. Compared to the physical document verification method, which can take up to days to authenticate a user, the entire process completes online verification in a relatively short amount of time.

Document Requirements

Depending on their preferences, numerous  companies from different industries require multiple types of documents. For instance, organizations have major concerns about confirming customers’ identities and will choose original identity cards or other forms. Identification includes information about the customer’s identity, such as the bearer’s photo or name. In order to verify users, other industries like banking and finance will also demand their financial or banking statements.

Final Thoughts

The number of document frauds is rising with every passing day as attackers are becoming more expert in new techniques. Cybersecurity organizations and other service providers are adjusting to the online document verification solution. In order to verify documents through online channels to address the situation. This type of verification is quick and delivers effective results that help in preventing fraudsters from accessing the internet systems of various businesses.

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