Creating a bank account, signing up for online shopping, or availing of telehealth benefits has become a reality. However, industries require more efficient identity document verification to ensure legitimate individuals are applying for the benefits. Due to a significant rise in fraud risks and cybersecurity threats, it has become crucial for businesses to place necessary precautions in place.
Industries require a multi-layered IDV approach toward customer onboarding to prevent fraudsters’ access. AI-powered documentation verification service providers are helping businesses cross-check the validity of users. Moreover, they can stay put with Know Your Customer (KYC) regulatory standards. Due to its rapid adoption, the global IDV market value is predicted to reach $32.94 billion by 2030. This blog covers ways identity document verification solutions benefit industries.
ID Document Authentication – Accuracy-Driving Solutions for Industries
Customers are preferring mobile log-ins and digital payments over physical deposits. Similarly, telehealth is shaping their attitude toward availing medical help. Moreover, every industry is undergoing rapid digitization that is changing customers’ attitudes and attracting regulatory scrutiny. Due to high fraud risks, legal bodies are enforcing businesses to more strictly verify their costumes prior to their onboarding.
Money laundering, synthetic identity fraud, data breaches, and many other criminal activities are forcing industries to integrate efficient identity document verification. These government-issued proofs of identity help businesses validate users. Its advanced solutions such as automated data extraction, information validation, and cross-matching across global records further enable industries to enhance their operations.
AI-powered id document authentication provides industries with automated solutions to stay put with KYC compliance checks and minimize penalties. In case customers will have to visit offices physically with a bunch of papers, they are more likely to abandon the process. Similarly, complex IDV checks during digital onboarding are also sure to drive them away. Therefore, to decrease soft declines and client drop-off industries need to integrate better identity document verification solutions. More benefits of incorporating AI-powered services for businesses are in the next section:
AI-powered identity verification solutions are emerging as game-changers for industries. Where criminals use advanced software such as photoshop to forge information and create fake identities, they identify manipulations in no time. Moreover, these ID document verification services enable businesses to access global databases that help validate customers belonging to any region.
Criminals often target companies with lax identification mechanisms to escape regulatory checks and perform malicious activities. For instance, create bank accounts, avail medical insurance claims, purchase restricted products, and others. However, with advanced identity document verification solutions in place, industries can restrict fraudsters prior to onboarding.
Accurately Authenticate Formats
Criminals use fake signatures, holograms, watermarks, or other techniques to make their documents look legitimate. This helps them steer clear of identity verification processes. However, AI-powered solutions provide comprehensive algorithmic-based checks across various types. As industries are making efforts to onboard global customers, they need to integrate identity document verification mechanisms for validating their true information.
Optical Character Recognition (OCR) Automates Data Extraction
Traditional ID document verification methods are prone to various errors such as inaccurate human interpretation, false entries, and discrepancies in data extractions. As criminals are using advanced methods to forge information, manual verifiers can no longer be trusted in validating them. Therefore, industries require more efficient identity document verification solutions to streamline the extraction and identity verification process of customers.
AI-powered IDV solutions use OCR technology to automate data extraction. The system asks users to upload pictures of their documents in real-time. It then automatically extracts the required data for further analysis. OCR technology does not involve human interpretation which makes it more reliable and free from discrepancies.
Provides Risk-Based Red Flags
Criminals are becoming more sophisticated and expose industries to unforeseen consequences. This helps them bypass IDV checks while escaping risk assessment. Fraudsters use fake documents to hide their sources of funds and commit money laundering. Similarly, synthetic identities help them travel across borders and become part of organized crime syndicates.
Industries are required to bring in efficient document verification systems to identify red flags on fraud risks and restrict criminals’ access. Furthermore, AI-powered solutions provide secure customer onboarding while mitigating threats. Online identity document verification services further enable industries to reduce friction during customer onboarding.
Digital identity document verification solutions provide industries with a multi-layered approach for strengthening their customer onboarding process. Furthermore, AI-powered IDV services provide more levels of accuracy while helping businesses stay put with KYC regulations. Online document verification systems reduce fraud risks by identifying forgeries. It also cross-match customers across global databases.
From building trust, retaining customers, and providing secure onboarding solutions to ensuring compliance with regulatory standards, AI-powered identity document verification solutions help uphold the integrity of businesses in every way.