A document verification service is a collection of procedures that guarantees the accuracy, legitimacy, and genuine ownership of papers submitted by users.
Falsifying people’s documents is illegal, but trading them on the dark web makes the situation worse. Surprisingly, counterfeit records in physical form sell on the dark web for more money than their scanned counterparts. In June 2022, a genuine Maltese passport went for $6,500, whereas the average cost of a passport from another nation was $3,800. A Minnesota driver’s license is anticipated to cost $150 for scanned versions.
A document verification service can help in this situation by safeguarding firms from identity and data theft in addition to other things. Let’s first examine their numerous business benefits before learning more about document fraud.
What is Document Forgery?
Document forgery, often known as document fraud, is the process of modifying, producing, or using real or fake papers with the goal of evading or getting around security measures. Depending on the circumstance, motivation, and type of counterfeit document, different penalties apply for document fraud. Many laws consider it a serious forgery offense to fabricate official documents like ID cards, driver’s licenses, and passports with the intention of selling them.
Classes of Document Fraud
Interpol fraud is divided into the following categories. This comprises:
- Counterfeit Documents: Reproducing a legitimate document without the necessary authority’s consent.
- Forged Documents: Intentionally changing a formal document in order to remove, add, or change information to give it a more authentic appearance. Pages can be changed, data can be changed, photos can be changed, and entry/exit stamps or visas can be attacked to create forged papers.
- Pseudo Documents: Counterfeiting official papers, including passports and national identity cards, which nations or international organizations do not recognize.
There are various types of document fraud with legitimate documents:
- The term “Fraudulently Obtained Genuine” (FOG) refers to official documents that have been gained through fraud, theft, or other illegal means
- Genuine documents that a fraudster has mishandled
How to Verify Documents?
Verifying documents determines if they are authentic or false by looking at details like watermarks, font styles, symbols, holograms, or other safety attributes.
Here’s how a service that verifies documents does its work:
Step 1: Document Gathering and Data Collection
A picture of the user’s identification records must be uploaded. The algorithms thoroughly scan the document, recognizing the encrypted data as well.
To prepare them for the next phase, documents must first go through pre-processing. Ensuring proper data extraction involves inspecting the boundaries of documents, straightening out photographs, and boosting their brightness and color.
Step 2: Data Extraction
The required details are taken from the documents, and any extraneous data is removed. Using Optical Character Recognition (OCR) technology, the clever engine extracts all the data.
Step 3: Document Verification
To verify the accuracy of the data, it is then cross-matched with the database. The following validation checks are performed:
- Face and orientation recognition
- Edge detection and cropping
- Front-to-back correlation
- Cross-checking with other international IDs
- Color space analysis
- Comparing the selfie to the picture on the ID card
Step 4: Impacts Generated
The results of the document checking are given to the end user and kept in the back office for later use.
Perks of an Automated Document Verification Service
Businesses are looking for strategies to both stop these horrible crimes and help them stand out in the crowded market since fraud is growing day by day. As a result, AI-based document verification is their preferred solution since it offers faster ROI, enables quick client onboarding, reduces the risk of fraud, shields them from non-compliance fines, and helps them establish a good reputation.
- Faster Return on Investment
When compared to conventional technology, businesses that use automated document processing can lower their ownership costs and boost Return on Investment (ROI).
- Rapid and Secure Client Onboarding
Customers are onboarded more quickly by online document verification service than by manual ones since they do not have to wait in huge lines to get their documents verified. They only need to supply their information, and the AI-based document verification service will quickly and instantly verify their legitimacy.
- Compliance with KYC/AML Regulations
In order to avoid paying significant non-compliance fines, document verification services force firms to adhere to Know Your Customer and Anti Money Laundering (KYC/AML) rules.
- Better Customer Experience
Businesses may make a difference by providing a better customer experience in the drive to outperform rivals. Customer satisfaction either builds or ruins a company’s reputation. An automated document verification process comes in handy in this situation. Customers feel confident when a company complies with KYC/AML regulations. They instantly project a positive brand image, which helps the company increase sales and establish itself in the cutthroat global marketplace.
The Growing Need for Document Authentication
Cases of identity and data theft are increasing, costing organizations dearly. Up until June 2022, around 2.4 million fraud instances, including identity theft and other types, were reported. Document verification service is now a crucial tool for any business to use in order to confirm that the clients are who they claim to be. It assists organizations in numerous other ways in addition to verifying clients during onboarding.
