Secure Customer Onboarding With Digital Document Verification Process

Companies must identify authentic users to be on board. Fraudsters use digital technology to generate fake documents in place of legal documents. Moreover, counterfeit documents seem real, as minor variations often remain unidentified. In recent years, the United States reported 1802 cybercrime cases. Companies are required to use advanced technology to verify the documents. The document verification process detects variation and confirms legitimacy. The fraud case ratio has rapidly increased in the last few years, compelling businesses to seek prevention solutions. Identity documents are verified to mitigate the risk of cybercrimes and streamline the client onboarding process. This blog post will explore the role of document verification in streamlining work operations with robust AI technology.

Why do Companies Use the Document Verification Process?

Organizations use document verification to identify the legitimacy of individual data. Every business requires certain ID documents before registration, onboarding, and account opening. Organizations also require legal documents like identity cards, driving licenses, and passports to assess clients’ legitimacy. Moreover, documents can be verified manually or digitally. However, advanced technology is encouraged for online document verification. Companies can onboard authentic customers after completing the verification process, overcoming the risk of fraud. Additionally, organizations have multilayered security using advanced technology-based document verification.

Automated Verification System vs. Manual

Documents are collected to verify a piece of certain information, for example, to know whether the name or spelling of the customer is the same on different papers or not. In a manual process, the employee is directly involved in verification, but in automated procedures, AI-based models identify variations. However, automated verification processes are encouraged for being quick and intelligent. Additionally, it helps to verify identity documents systematically with a frictionless process.

How to Verify Documents Online?

Automated solutions are highly effective during client onboarding. A customer provides scanned copies of documents. This method is mainly used to verify documents online. Many businesses hold remote client onboarding and registration processes. Online document verification plays a vital role in securing digital business processing. It works as follows:

1. Document Collection

Documents are collected in the scanned form from the user. It commonly involves a captured photo of a specific document. Organizations hold requirements for documents and images such as:

• Is it a picture of the required document or not?
• Is the photo clear and of high enough quality?
• Does the photo capture the entire document, or is it a partial photo?
• Are there any evident signs that the document has been tampered with?
• Does the document contain the necessary information for verification?

2. Data Extraction

After an individual provides documents, the information stored within the document is extracted. This extraction is performed in several ways, such as Optical Character Recognition (OCR), pattern recognition, and other methods. Once data is extracted, it is compared against the user’s other data, like the address contained within the utility bill, which is compared against the information initially provided by the user. Distinctions between user-supplied data and the info composed within the document should raise a red flag. While these differences may signal an input error, they may also be a symptom of deception.

3. Document Validation

The next step in the process is to validate that the provided documents are authentic. This involves a variety of validation checks that depend on the kind of document being provided. These checks are automatically controlled through pre-trained artificial intelligence and machine learning algorithms.

Some standard document validation checks are the following:

● Document Completion

To confirm whether the document is wholly provided, for example, if the document consists of numerous pages, are all mandated pages uploaded? The document verification process utilizes various checks and identifies valid documents.

● Edge Detection and Cropping

Ensure that the document’s edges are not cropped or tampered with. Automated checks detect cropped edges and provide notification alerts to prevent fraud attacks.

● Special Feature Identification

Many official documents are designed with unique features such as watermarks, holograms, stamps, foils, fonts, textures, and more. These features are meant to be difficult to forge.

● Colorspace Analysis

A photo’s color provides additional context to signal whether a document is legitimate, falsified, or meddled with. OCR technology utilizes sharp mechanisms that identify every missing slot, which helps identify fake ID documents.

Key Takeaways

The document verification process is an essential requirement of every industry. It is used to verify documents such as bank statements, employment records, and company documents. This process includes three basic steps: document collection, data extraction, and validation. Verification of documents meets regulatory requirements. Additionally, it mitigates fraud, builds trust, and onboards clients quickly. Digitalization has also offered ground to fraudsters’ advanced technology to execute illicit actions. Automatic algorithm verification methods are the only solution to fight against every kind of terrorism.