Online Document Authentication – A Productive Way of ID Card Scanning

To manage the scams, document verification is required in several sectors such as e-commerce, social media platforms, online businesses and banks. The solution for all these complications is digital document verification. It accomplishes the needs and grants data security.

Need for Identity Verification

Identity document verification is mandatory because of the risk of fraud and impersonation. One can use a fake identity to another person There are numerous ways through .

 It is an illegal act and is punishable according to federal law. An act was also passed in 1998 named as Identity and Assumption Deterrence Act which generated a new law regarding identity theft and declared that no one is allowed to use someone’s identity as it is an unlawful act  and a violation of the Federal rules. The United States Department of Justice claims that the crime rate of identity scams is increasing eventually because of which a 15 years of imprisonment penalty is announced for those who are involved in identity fraud.

According to the report of the Federal Trade Commision (FTC) in 2018, around 1.4 million fraud cases took place and a quarter of them lost money and the reported loss was noted as 1.48 billion.

Role of Document Authentication in Fraud Prevention

To avoid the crime cases, financial regulatory authorities such as FATF, FinMA, FINTRAC, etc, are using KYC and AML compliances to guide the businesses about proper diligence of their customers. This is achieved by strict analysis of customers documents to verify authenticity of the identity and to avoid scams and frauds. This KYC (Know Your Customer) procedure is done in-person by banks, embassies, government offices and financial institutions. All credit is to advance technology which provides systems like artificial intelligence for attestation processes.

Every individual can now do business in their mobiles and computers and banks or business envoys can certify that you are who you say and your identity is not filched.

How do Document Fraud Works?

A document verification process includes three steps given below:

• Submission of users information is a process in which users submit their scanned photo from legal documents issued by the government through smartphones and webcams.
• Evaluation of credentials is a process which verifies the information provided by users and cross checks them. The photo of the user is verified by checking whether it is photoshopped, altered or compressed. Users also have to share their selfie for further checks.
• Verification and results are shared with clients after the evaluation of the users credentials.

Components of Document Checks

There are several components to check the authenticity of documents that are actually real or not. For this they check the holograms, rainbow prints, MRZ codes, document edges and tempering. There are several components to check the documents given below.

Unauthorized Documents

These documents are fake and are not verified by authorized institutes. These kinds of documents do not have signatures and official stamps.

Deceptive Documents

To bypass the system fraudsters use false documents. These are those documents which are stolen physically or approached by electronic means.

Customized Documents

These are those documents which are photoshopped and edited to modify date of birth or address without government approval. 

Document verification Solution

To get rid of business frauds, the provided information by the user is again attested and matched with the identity documents of the customers.

Significance of online Document Authentication

Online document verification provides an ease to the customers that they can verify themselves digitally.   

• This process of verification reduces manual effort.
• Document frauds help to identify the scammers and save the information of clients.
• Document checks are done to determine the onboard clients whether they are fake or real.
• Document verification offers KYC and AML obligations to prevent the documents from cybercrimes.
• Document authentication process helps digitally in the inspection of age to confirm that clients are of  appropriate age limit. 

Industries which can use Document Verification Process

There are several industries that use document verification services for their operations given below.

• Healthcare industries
• Travel industries
• Legal sectors
• Banking institutes
• E-commerce stores
• Insurance companies
• Cryptocurrency exchanges 

Conclusion 

Identity document verification saves time and allows customers to verify themselves at home just with one click of selfie or a picture of government approved paper within a few seconds. This software is authorized to verify 3000 documents worldwide. Hence this technology is highly efficient in the prevention of scams and frauds. Many institutions are using this application for the convenience of their clients.