Authentication issues are on the rise these days for business clients, individual clients as well as governments around the world. According to recent reports, victims of identity theft in the US had to deal with financial loss of about $ 26 billion. To this end, financial companies are always looking for effective solutions to combat identity theft issues. It should be noted that the IDV process is effective against such scams. It allows companies to verify their clients’ electronic documents through digital media and not through offline private sessions. These steps are important to comply with AML / CFT compliance. This way, companies can avoid major financial losses.
Document control system – What is the mechanism behind digital document verification?
Effective digital authentication is important for compliance with KYC / AML compliance. The latest technology makes authentication service secure for customers. The procedure is as follows:
- The system asks users to show their IDs in front of the camera so that the system can scan the data and extract information from it
- Once the system captures the image, the information goes through different check marks to determine its originality and authenticity. There are some special cases where a specialist examines the case himself for any signs of construction
- If the information in the documents is original and authentic, the user will receive the verification message. In cases where the information is authentic, the system will reject the documents immediately. In any case, the customer will have a final message
What are the potential advantages and disadvantages of the authentication process?
Advantages – Convenience and faster results
The current document checks Services can easily verify the identity of customers. The user only needs to provide an image of the official files (eg driver’s license / passport). The user has the ability to complete the process of verifying his identity from anywhere in the world.
It means that clients do not need to provide copies of official documents through men or by physical visits to the organization. Now they do not even need a specialist every time to check the authenticity of their files. It’s because the latest technology can control everything at once. Therefore, no lengthy verification procedures are required.
Disadvantages – Low reliability and content-free verification
The document control system has its advantages and benefits, but it has gaps that can prevent effective fraud prevention. Advances in technology have improved the process, but cybercriminals can use sophisticated methods to violate system integrity. They know that the document review process only verifies the legality of the documents. It means that fraudsters can use fake credentials and still escape without facing any consequences.
As it is clear that document control procedures only check the originality of the files. It means that the client’s name, date of birth and address data will not be verified.
Consequently, the document control process has its advantages and disadvantages. It means that companies can not rely on a single method of authentication. They have to use a lot and use their strengths to make their process infallible against hackers and fraudsters. Such steps will stop fraudsters who often use synthetic identities and files to complete their malicious missions.
Document verification system – The intervention of fraudsters
Customers should be aware that the document review process takes place in official documents. If customers submit forged documents with fabricated credentials, the automated system will reject the files immediately. Scammers have many ways of manipulating documents. It means that they can use manipulated recordings that do not have special features of the original recordings e.g. holograms. Another method they can use is to steal the credentials of a genuine identity and use it to trick the system. The third method of bypassing the system is to use a modified record whose writing style has been modified along with other features. So KYC verification is also used for this purpose.
Document control service – How effective is it?
The software has features that allow it to distinguish between legal and illegal files. The accuracy rate of electronic document checks is quite high compared to the manual process. The eDV process saves time as well as is resource efficient. It allows customers to verify their identity from the security of their homes. The system serves many types of documents around the world. It means it can even verify documents from different languages and different formats.
Finally, some modern banks and other financial institutions use the AI-supported document checking service to discourage cyber criminals. The latest technology helps companies with customer authentication as well as demonstrate compliance with AML / CFT regulations. The use of artificial intelligence saves time and resources because it is a self-improving system.
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