In the technological world, businesses face different challenges such as identity theft. It is a serious crime that traumatises the victims deeply. Identity theft also costs companies a lot of money: around $5.8 billion. The document validation process is an advanced solution that safeguards the sensitive data of companies reliably. The latest technique also ensures compliance with AML/KYC guidelines to protect the company from permanent bans/heavy financial fines. The utilisation of AI & ML technologies ensures document authentication at pixel levels. Therefore, it is a highly secure and powerful security protocol.
Document Validation Process: the Repercussions of Identity Theft
Presuming a false identity is a serious crime that criminals use to exploit the benefits associated with the identity. Fraudsters use various strategies to obtain their objectives. They can use the victim’s credentials to pressurize them mentally and emotionally. They can take advantage of the social media platforms to ruin the image of victims and demand funds for the inhumane objectives.
The Legal Advancement on Identity Theft
In the late 1900s, US Congress introduced the Identity Theft and Assumption Deterrence Act (ITAD Act of 1998) to combat identity theft.
As per the US Department of Justice, identity theft is a heinous crime that has severe criminal penalties, for instance, 15 years in jail and seizure of all materials that facilitated identity theft.
Execution of powerful security measures is required to stop the rising cases of identity theft in society. As per recent statistics, the financial repercussions of identity theft reached approximately $200 million in the past year.
Document Validation Process: the Contribution of Global Regulatory Bodies
Reducing online fraud is the main objective behind the introduction of AML/KYC standards. FATF, FINTRAC, and FinCEN demanded that all businesses adhere to internal regulations to control the rising cases of online fraud. Application of CDD/EDD (Customer Due Diligence/Enhanced Due Diligence) must be done to verify the identities of the customers, during the onboarding process of every organization.
Earlier the experts used to perform AML screenings and KYC checks by physical sessions. However, the digital era has introduced digital solutions that have ensured accessibility and convenience of services all across the world. Executing artificial intelligence and machine learning (AI & ML) technologies has enhanced the efficiency of digital security protocols. Customers can benefit from the technology through digital platforms by connecting through any electronic device.
Document Validation Process: the Working Mechanism behind Record Verification Tool
Integrating artificial intelligence with the document verification solution eases the process for the end-users. The software instructs the users to submit government-issued documents during the onboarding process. The use of OCR software captures the required information from the client’s records and securely stores them in the database.
Only if the data is original and accurate, the customer sees the final verification results and onboard successfully. Clients must be aware that the document validation process only works with government-generated records that have special characteristics such as rainbow prints. For example, driving licenses and passports. If fraudsters try to violate the integrity of the system, the system will stop the verification process instantly and notify the company to take appropriate action against the bad actor. The whole procedure of the document validation process is below.
- The AI-driven software checks the originality of the documents during the live document verification procedure
- The technology also checks whether the user has input the correct data or not. If the information is incorrect/missing, the software guides the customer to correct the information. The feature is also available for various foreign languages
- The AI-backed software also assesses the MRZ code and evaluates the originality of given records. The uses the information for decoding and cross-checking
- In case of the natural deterioration of documents, the authenticity of records can be reduced. The machine looks for crumpled edges and tears in the documents
The AI-supported system is more efficient than the traditional approaches because there are manipulation techniques that a human eye cannot catch even after training. For instance, fabrications at the micro text level. Features like miro-prints, holograms, and special ink make the government-issued documents forgery-proof. In this way, the AI-backed system ensures foolproof safety against identity fraud.
The Bottom Line
Application of document validation process guarantees the accuracy of results. The document authentication service also cross-checks the given data against various checklists to deter cybercriminals. The combination of AI & ML technologies increases the effectiveness of the document validation process and ensures a positive experience for customers. It also prevents identity fraud and financial bankruptcy for organizations. The advanced technological solution has eliminated the need for hiring a verification officer in the companies. In the end, financial institutions can easily comply with AML/KYC standards to ensure active participation against money laundering cases.
