In the world of technological innovation, businesses have benefited from innovative technology, but fraudsters also use it to achieve their nefarious goals. As per a report from Insurance Information Institute, victims of identity fraud around 14 million worldwide. Previously, during the pandemic, the number of fraudulent financial exchanges and data privacy breaches increased because of cyberattacks. This was perplexing for experts at that time, and it is challenging even in the post-pandemic era. Business owners want to implement innovative digital solutions that can discourage identity theft in real time. The application of document authentication services can help organisations deal with above challenges. The following section goes in-depth about the significance and implementation of intelligent solutions for effective fraud prevention.
Document Authentication Services: A Quick Overview
During the digital account opening process and monetary transactions, the experts ask clients to submit government-issued records for in-depth validation. In this context, clients must provide a driver’s licence or passport to complete the validation procedure. The verification expert authenticates details on the record and cross-matches images to ensure that a bad actor is not trying to exploit the system.
Modern AI-powered technologies have the power to replace manual validation procedures. Moreover, the widespread use of digital platforms helps remote clients to benefit from services from anywhere in the world. This empowers corporations to perform transactions with ID verification as a pre-requisite. Unfortunately, cybercriminals also use innovative technology to fool security protocols. This is where enterprises must keep up and opt for intelligent solutions and comply with KYC & AML regulations. The following are special parameters that documentation authentication services use to evaluate the originality of user records:
- Checking the authenticity of records
- Identifying document format correctly
- Validating MRZ code
- Identifying crumpled edges
- Highlighting forgeries in records
- Verifying the special paper & ink
- Checking micro prints
- Detecting rainbow prints
The above checks play an important role in verifying user identity in real time. The above elements are not present in fraudulent records, making it easier for document authentication services to distinguish between fake and original documentation.
Popular 5 Record Manipulation Techniques
The following are notable document forgery approaches that criminals use to bypass security protocols:
Illegitimate records are completely fake records because such documentation does not have special elements. For instance, fraudulent records do not have holograms, rainbow prints and other characteristics.
Such types of records are not forged, but criminals steal the documentation to circumvent the document validation procedures.
Fraudsters manipulate original records to fool the company’s defence mechanisms. If corporations still use outdated approaches, experts won’t be able to catch the deception. Hence, the application of document authentication services can help companies to deter external attacks.
Blank Stolen Documents
Valid records start out blank, and fraudsters leak such documentation from the manufacturing supply chain by filling in fake data to fool the security systems.
Counterfeit documentation is a replication of original documents. Cybercriminals collect a template and input fake data (text & photos). Fraudsters can purchase such records illegally and then sell them on black market at a high price.
Top Benefits of Applying AI-Driven Document Authentication Services
The implementation of AI-powered record validation services plays an important role in determining the authenticity of records. This contributes to fraud prevention and facilitates compliance with KYC & AML regulatory obligations. The following are notable perks of document authentication services:
Ensuring a Positive Experience for Clients
As per a PWC study, speed and convenience are two important factors that play an important role in improving customer experience. Outdated procedures waste time and capital of the enterprise, which motivates customers to shift companies for a better experience. Only a delay of 5-6 seconds in loading webpages can discourage consumers and clients from wanting to abandon transactions. This shows the significance of speed and convenience in enhancing user experience.
Mitigating Risks & Attracting Genuine Customers
In the context of business growth, performing document authentication services has become essential to onboard real consumers and discourage bad actors from exploiting the system. This also communicates a message of care & responsibility to clients that their sensitive data will be safe with the company. The cutting-edge technology can mitigate risk, enhance customer satisfaction and facilitate compliance with KYc & AML regulations. This is better than traditional approaches, which were ineffective in dealing with risks and onboarding real consumers.
The Bottom Line
The application of document authentication services facilitates organisations to fight fraud and only accepts government-issued records. Cutting-edge solution screens documents and determines authenticity. This is important to attract only genuine customers from around the world and discourage bad actors effectively.
Corporate experts can also collaborate with a competent third-party vendor to benefit from a GDPR-compliant service that ensures compliance with KYC & AML regulations. This also ensures a positive experience for users and communicates a competitive advantage to new customers.