Rising cases of Identity theft are a serious problem for institutions. Financial organizations, the travel industry, digital stores, and the entertainment sector want to tackle digital fraud through the latest technological advancements. According to the statistics, around $6 billion in fraud losses were reported in CSN Databook of 2021. This also happened because companies were not following the latest AML/KYC regulations. Organizations want a solution that not only fights fraud but also guarantees compliance with global regulations. Document verification services can facilitate users in dealing with the above issues. The digital solution can enhance customer experience along with high security around clients’ data.
Document Verification Solution: the Repercussions of Increasing Identity Theft
According to the local law and RegTech industries, identity theft is a serious offence. It means that a criminal has stolen the identity of another individual to gain the benefits linked with them. In most cases, cybercriminals damage the reputation of the original identity to cause mental and emotional stress. Hackers take control of their social media accounts and post content that violates the community guidelines. When they see that the victim is completely under their control, they demand heavy financial benefits.
The Legal Intervention Against Identity Theft
According to the Identity Theft Act of 1998, identity theft is a criminal act that has serious legal consequences for the perpetrator. Moreover, as per the USA Department of Justice, the criminal must face around 10 years in prison. Any material that was used in the crime must be confiscated, no matter what. Such legal approaches have helped governments in controlling the crime rate but there is so much progress required. Hackers have years of experience and they can use different strategies to bypass security protocols. It is crucial that users keep upgrading their security systems according to the guidelines of global regulatory members. Consequently, the application of document verification has become critical.
Document Verification Software: the Crucial Role of RegTech Organizations
In light of increasing digital fraud cases, organizations like FinTRAC and FATF have enforced AML/KYC regulations to reduce digital crimes all over the globe. The introduction of the guidelines means that financial action forces want companies to follow them strictly otherwise there are serious financial fines/permanent bans. As per AML/KYC guidelines, it is crucial for companies to perform due diligence processes on their customer’s data. It can be CDD/EDD depending upon the risk evaluation report of their profiles. If the report shows a high risk, it is best that businesses implement the EDD process (Enhanced Due Diligence) because it goes in-depth as compared to the CDD procedure (Customer Due Diligence).
The application of the KYC system is a must for companies because it only allows genuine customers to enter the database of organizations. In such a way, it is critical in fighting digital crimes. The rise of digital solutions has made matters easier for organizations because compliance with international regulations has become convenient while boosting the productivity of the company. The integration of artificial intelligence has made the remote availability of document verification services for clients across the globe.
Document Verification Process: What is the Working Mechanism Behind Documentation Verification?
In the early days when the document attestation procedure was manual, it was possible for criminals to fool the human eye and get their hands on sensitive data. Nevertheless, the implementation of AI & ML algorithms enhances the processing power of document verification services. Clients can use the service on company’s website or through electronic apps. The whole document verification process is the following:
- The software instructs the user to take a selfie for identity and document verification in real-time
- The advanced OCR technology captures client’s data from document images within seconds
- After a comprehensive analysis, clients see the verification results on their screens
Clients must know that the verification procedures only work if they have submitted original documents without fabrication. In case of manipulation, the AI and ML-backed document verification system catches the deception and rejects the application immediately.
All in all, document verification software has the latest features that can easily differentiate between fake documents and original records from clients. It can easily detect record manipulation at the pixel level. The high accuracy of verification results makes the technology pragmatic and compatible with contemporary organizations. The document verification software is time-saving and resource-effective. End-users can benefit from the technology remotely because of AI and ML support. It can verify documents even in foreign languages having different formats. It is a progressive approach to counter identity theft, money laundering, and terrorism financing.