Accelerating technological advancement is resulting in tremendous growth of online services in sectors such as banking, healthcare, and retail. With many industries embracing digitization to facilitate more customers, the importance of verifying their identities is significantly increasing. Similarly, high fraud risks including document forgery, identity theft, and transaction scams require efficient countermeasures.
Criminals create synthetic identities by using stolen Personally Identifiable Information (PII) to impersonate legitimate customers. In order to counter their attempts, businesses require digital document verification services. By using Optical Character Recognition (OCR) tools the systems extract information without involving data discrepancies. Machine Learning (ML) algorithms then accurately validate identity details. This article entails major digital document verification trends and their impacts on businesses.
Applications of Online Document Verification in IDV Processes
Businesses failing to upgrade their identity and document attestation systems are sure to drive non-compliance risks. Similarly, they will experience an increase in their vulnerability to criminal threats, ultimately leading to the loss of customers’ trust. Inefficient identity verification mechanisms are incapable of detecting sophisticated fraud attempts. While involving data discrepancies and human errors, businesses are less likely to cope with evolving regulatory landscape. Emerging competitive trends are forcing businesses to integrate more efficient and technologically advanced document verification solutions.
One of the foremost methods to verify customers’ identity is by validating their documents. While these pieces of paper are prone to forgeries and tampering, building efficient IDV mechanisms has become more crucial. Businesses integrating digital document verification services can ensure accuracy while consuming less time and resources. Furthermore, AI-powered IDV tools automate customer onboarding.
Upon their arrival, the system itself asks customers to upload government-issued ID proofs such as identity cards, driver’s licenses, and passports. For address verification, clients provide utility bills, bank statements, rental/ownership agreements, license certificates, and credit card payment invoices. The AI-powered digital document verification tools then extract information, detect forgery signs, authenticate validity, and provide accurate results.
Document Authentication – Prevalent Trends Impacting Digital Businesses
In order to verify customers, businesses either providing financial, retail, or healthcare services require automated document verification services. These IDV solutions not only authenticate information but also recognize facial features for improved accuracy. By asking for a real-time selfie and cross-matching it across identity documents, businesses can ensure secure digital onboarding.
Customers lost around £1.3 billion to identity theft and other fraud attempts in 2021 and the number is predicted to see a more dramatic increase. This is where businesses should jump in with digital document verification as counteracts. As the adoption of technologically advanced IDV solutions continues to grow, industries should consider the following trends while integrating them:
The Competitive Market is Thriving
Digital identity document verification is making it easier for businesses to upgrade their operations while having less to spend. While this process provides an advantageous edge to industries, they can perform well in the competitive market as well.
AI-powered digital document verification services streamline customer onboarding by providing an automated and user-friendly approach. Therefore, businesses are making efforts to eliminate the chances of their lagging behind the need to integrate efficient IDV mechanisms.
Evolving Regulatory Landscape Makes Compliance Challenging
Keeping in view the increasing instances of fraud attempts, regulatory bodies are coming up with more strict document attestation requirements. They are putting forth a zero-tolerance policy towards the exploitation of data. Furthermore, hefty penalties are making compliance challenging.
To cope with evolving regulatory landscape businesses need to take sufficient measures. Digital document verification, in this case, comes in handy. Therefore, to ensure compliance with data privacy laws such as CCPA, GDPR, and others, businesses should invest more in integrating AI-powered IDV tools.
Emerging Fraud is Questioning Existing IDV Methods’ Reliability
Criminals are employing sophisticated efforts to trick manual IDV methods. To a huge extent, they are succeeding in making existing document authentication systems vulnerable. With the evolution of technology, fraudsters are equally becoming advanced. They perform hard-to-detect document forgeries and businesses provide them access to their digital services.
Having digital document verification solutions in place, businesses can toss the tables in fraudsters. By using ML algorithms, the system validates holograms, ink types, signatures, stamps, watermarks, crumbled edges, and other such authenticity characteristics. This makes digital document verification more reliable.
Cost Pressures are Accelerating Digitization
Manual IDV methods involve the consumption of more company resources. However, they are still incapable of detecting fraud attempts. In return, businesses are facing financial loss due to additional operational costs. Integrating online document verification solutions enable industries to not only meet customers’ demands but also cut down on the excessive use of resources.
Summarizing the Facts
For businesses embracing technological innovations, integrating digital document verification is equally crucial. AI-powered IDV solutions provide a comprehensive analysis of customers’ identities and provided proof. By using OCR and ML algorithms, forgery detection becomes more accurate and easier. Hence, digital document verification services enable businesses to deter fraud risks and restrict criminals from steering clear identification processes.