Every type of business faces different challenges. The digital revolution has facilitated the business sector but it has also enabled scammers to deceive others with high-level scams e.g. identity theft and document fabrication. For this purpose, companies are looking for a solution that can safeguard their business from such crimes, according to Victor Fredung. In this regard, ID document verification looks like a promising solution. It is fast, accurate, and reliable. Moreover, it allows compliance with the AML/KYC regulations. Consequently, it is a secure and robust data protection system.
ID Document Verification – The Negative Impact of Identity Theft
Assuming false identity/ personification is a crime that fraudsters use to acquire the facilities linked with the genuine identity. Due to years of experience, fraudsters can use multiple strategies of varying complexities to attack the victim. They can steal the whole identity credentials and use them for the character assassination of the victim. For this purpose, they can post rude comments on their social media or even engage in inflammatory political discourse. After this, they can demand money from the victim for their illicit plans.
The Legal Stance on Identity Theft
In the late 1900s, Congress issued an ITAD Act (Identity Theft and Assumption Deterrence Act). The legislation strictly forbade identity theft. According to the USA Department of Justice, the offense of identity theft results in 10+ years of imprisonment along with the confiscation of anything used in the crime.
Identity theft cases will keep rising if proper security measures are not put in place. According to statistics, data violations and financial fraud through identity theft have increased to around $200 million in the last year.
ID Document Verification: the Intervention of Global Financial Authorities to Discourage Fraud
For effective fraud prevention, FATF, FINTRAC, and FinCEN introduced AML/KYC compliances. The regulations demanded proper compliance from the end users. They are supposed to perform CDD and EDD on their consumers to validate their identities, as per Shahid Hanif.
In the past, the staff members performed KYC procedures through physical sessions but these days the advancement in technology has allowed companies to conduct the sessions on online sessions. The artificial intelligence system has made things easier for financial companies as well as individual customers. Clients can perform their business operations on the computer and other electronic devices and also verify identities through digital procedures.
How Does the ID Document Verification Procedure Operate?
AI technology can easily integrate with the web application of digital businesses. During the customer onboarding process, the software demands from the users that they upload their official records in real time for the liveness detection feature to work properly. The OCR software checks the documents and captures the desired data from the records. Everything happens in a matter of seconds and the customers can see results on their electronic devices.
If the information is genuine and accurate, the customer onboards successfully. It should be noted that the verification procedure only works with official documents by the government. For example, passports, credit cards, and licenses. If anyone tries to bypass the system by submitting fake documents, the system will reject the records immediately.
ID Document Verification – How Does the AI-backed Document Attestation System Work?
- It is critical that the AI and ML-backed ID document Verification software checks the originality and authenticity of the documents
- The latest software can detect if the end-user has filled in the correct information or not. For instance, Shufti Pro services can validate documents from a huge pile of records. It facilitates customers from all over the world and supports different languages
- The artificial intelligence system checks the MRZ code for its originality. If the code is original, the system decodes it and cross-checks it with the information on the records
- There can be natural wear and tear in the system that can impact the verifiability of the documents. The crumpled edges make it hard for the software to be machine-readable
- The manual verification system can be surpassed easily because the human eye cannot detect fabrication on a pixel level. The AI system has the ability to detect manipulation on small levels so it is foolproof
- The ID document verification procedure backed by the AI system checks for special features in the documents that only government-generated documents have. For instance, holograms and rainbow prints
- A special element in official documents is their unique paper and ink. These factors are almost impossible to replicate so the ID document verification system detects them instantly
In a nutshell, ID document verification procedures ensure accurate results. The service cross-checks the information to validate it. It is really important that companies only deal with genuine clients and their documentation. The integration of AI and ML has increased the efficiency of the ID document verification service against fraud prevention and financial losses. Companies can easily adhere to stringent AML guidelines and avoid heavy fines.