The foundation of the business-client relationship stands on trust. For that, they have to provide authentic and accurate information to the other. The businesses should tell what services or products they are providing, pricing, pros and cons, legal obligations, and how they would impact the client. The clients should give their correct information so that the business can provide services accordingly. It is as significant as the universal saying “Never lie to the doctor”. Not doing that can result in distrust among business entities.
But in this era where faking data is easier than ever, now the software can create numerous names and associating addresses. There is also online software that can create fake images through AI models. These faking attempts can’t be countered using normal techniques and measures. Here, we will discuss how people lie to businesses using counterfeit IDs and how to counter them using client document verification.
How Fake Documents are used for Identity Frauds?
People usually think of bogus social media accounts when it comes to ID frauds. But identity frauds are a lot more than just that. First, let’s discuss how fake social media accounts are created. Some scammers download the user’s profile picture by also stealing his bio-data like name, nickname, DOB, and about the section. Then they create another account using the same information and image. Now there are two accounts with similar data. It will be very difficult for other users to differentiate among them.
Then he can send requests to others, and there the game actually begins. He can ask for payments from the actual user’s friends. This is done abruptly, giving no time to the actual user to have a complete idea of the situation. Once the scammers become successful in getting funds or sensitive information, they disappear immediately.
Account takeover is also a crime that comes under the umbrella of identity fraud. The online account access is taken by stealing credentials. For example, if some fraudster gets the username and password of a banking app. He can log in to that app, transfer funds to his account, or use that account for money laundering. This usually happens if the banking app is not using 2-FA and some other security method.
Client Document Verification
Banking apps are secured with facial recognition technology and document verification protocols. The clients are verified through the document verification process during account sign-up. Taking data from government-issued documents built trust among business entities.
Here’s how client document authentication can benefit businesses
While signing up for an online account, clients often make mistakes like incorrect spelling. With document attestation, the data is fetched directly from IDs, there are very minimal chances the information has some mistakes. Most people fail to give their accurate address data because it is very long and includes numbers. Online document verification can overcome these types of difficulties.
The document verification software can counter fraudsters that try to give their bogus data to the business. The fraudsters can be stopped at the earliest stage using client document verification. It kills the hazards of scams and false data, which ultimately increases the trust of customers in business.
Better Customer Experience
The customers just want speed and convenience, both are compromised while manually typing data into e-form. Uploading pictures takes just seconds and that’s it, they do not have to put an extra effort into it. The software extracts the information from the image and populates the form. This saves the customer time and the chances of drop-off reduce.
Compliance With Regulations
Global regulators can fine a business over non-compliance with KYC and AML protocols. This happens when businesses do not verify their customers’ data or do not have updated information. Client document verification checks the expiry data of ID to have the most updated data.
Validating Identity Document via AI and ML
The complete world is accommodated with artificial intelligence and machine learning algorithms. These innovative algorithms permeate the identity verification of individuals remotely via online document validation. This permits businesses to carry out transactions remotely by validating the identity of individuals. It’s high time for businesses to level up their game with the incorporation of robust AI-powered document verification processes for the detection and elimination of fraudulent activities. In the current age, AI-powered KYC platforms in financial infrastructures help fintech companies to validate their customers by maximizing accuracy, efficiency, accuracy, and consistency.
Wrapping it Up
The process is user-friendly and smooth, taking the least customer-side effort. The speed allows customers’ to stay on the platform more frequently. Businesses can ensure legitimate customers’ onboarding through client document verification.
Online document verification solutions and services are something that must be mandatorily acquired by enterprises of all shapes, sizes, and types. Organizations deal with different types of data each and protection of that sensitive data is something that must never be neglected at any cost. All of the above-mentioned trends boil down to one fact that an online document verification system is crucial for each and every single organization across the globe. Consequently, considering the never-ending identity scams, it is obvious that enterprises need better mechanisms for the mitigation of all risks of fraudulent activities.