Top 6 Industrial Applications of Verification of Documents Services

Identity fraud is a heinous crime that several modern-day industries still face. In 2022, the FTC’s Consumer Sentinel Network received over 5.1 million reports, 46% were related to fraud, and 21% involved identity theft. Only document authentication solutions can help corporations tackle rising scam cases worldwide. This way, companies can also ensure compliance with KYC & AML regulatory obligations. With this, modern-day industries can avoid hefty fines and bans from FINRA or FCA.

The following article discusses the industrial applications and significance of verification of documents services.

Document Authentication: A Quick Overview

Document verification is about authenticating users’ credentials to prevent bad actors from committing ID theft and other financial crimes. However, about $28 billion in losses due to identity fraud, victimising 27 million U.S. consumers. Cutting-edge technology demands only government-issued records (driving licence or passport) from onboarding consumers.

According to Fortune Business Insights, digitisation user onboarding & payment systems will further increase the demand for IDV services worldwide. Thus, the Bank Secrecy Act, GDPR & PSD2 will also play a critical role in the rising demand.

Top 6 Industrial Applications of Verification of Documents Solutions

Verified documents are essential to discourage external attacks in modern industries. The following section discusses in detail the six notable use cases of the verification of documents solutions:

• Ensuring Smooth Customer Onboarding

During account openings, all businesses must verify the credentials of new customers. Historically, several industries, such as banks, education, healthcare, and insurance, had to go through record authentication services. This was not only time-consuming but also resource-draining for corporations. Intelligent verification of documents services can ensure a streamlined customer onboarding experience for new clients.

• Providing Age Verification

Performing age authentication is crucial in both the gaming and healthcare industries. This happens by extracting the date of birth from government-issued records such as driving licences or PAN cards. The implementation of verification of documents can help the industries mentioned above to onboard genuine customers across the world.

• Processing Invoices Accurately

All businesses have invoices; sometimes, employees must input the data to maintain company expenses. This consumes a lot of time and produces an output with several errors. With automation, state-of-the-art technology ensures that all invoices get processed without errors through a standardised process. This way, users can automatically gather invoices from emails, drive, and dropbox. The OCR technology can extract and store desired information in a company database.

• Detecting Fraud Accurately

Cutting-edge technology can help modern-day corporations fight fraud actively. This way, companies can discourage the following record scams:

• Forged Documents: Fraudsters change information on documents and entirely modify their identity by inserting genuine pages from other records, using fake stamps and watermarks.
• Counterfeit Documentation: Such types of records are replications of original documents. Cybercriminals buy fake paperwork illegally and input false data. Hackers also have the option to sell records on the black market.
• Camouflaged Records: Perpetrators use fake names of issuing authorities and even the agencies that do not have the power to authorise documents. This scam is essential, but it can easily bypass security protocols.

This will ensure a streamlined onboarding experience and discourage bad actors from exploiting the mainstream corporate sector.

• Supporting Compliance with KYC & AML Regulations

Know your customer & anti-money laundering regulatory obligations have become compulsory for banks, insurance & other financial service providers. With increasing cases of ID theft, adherence to KYC compliance has become crucial. This way, companies can avoid hefty fines and attract genuine customers. Undoubtedly, specialists can prevent identity theft and money laundering cases with the verification of documents approach.

• Verifying Identities of Vendors

Business experts work with various vendors throughout the financial year. Retail businesses have to work with multiple suppliers and vendors. In this light, professionals need to validate the identities of new vendors and attract genuine entities. According to a survey, e-commerce losses to online payment fraud have been estimated at $41 billion globally in 2022 and are predicted to develop to $48 billion by 2023.

In the context of updating regulations & technologies, verifying the identities of businesses is essential before establishing a partnership. Professionals can experience problems such as inaccurate data, budget issues, and other restraints. This can negatively impact corporate workflow and identity verification of vendors. With the help of advanced verification of documents solutions, experts can easily overcome the above issues.

The verification of documents services can also apply to the following use cases:

• Case reviews
• Contract administration
• Mortgage loan applications
• Digital document archiving
• Driver Registration

Concluding Remarks

The application of verification of documents can help businesses streamline the record validation procedure and attract genuine customers from worldwide. This is important to discourage identity theft & other financial crimes. Moreover, corporations can easily comply with Know Your Customer & Anti-Money Laundering (KYC & AML) regulations.

Collaborating with a third-party vendor can help modern-day corporations implement a compliant solution. In this light, companies can secure a competitive advantage and strengthen customer relationships.