Recently, identity theft has become a serious issue. For example, falsifying documents, and making use of counterfeit documents has become widespread. Moreover, phishing attempts and data breaches are happening increasingly. Within this context, a new service KYC verification documents have solved the problem and made the lives of people easier. It has declined the risk of fraud and theft for businesses all around the world. The service has made it easier to identify the customer through different means when they are trying to do online document verification to make transactions, open an account, and perform other important tasks. The service empowers companies to keep track of their clients’ records and check them against strict rules and regulations. It will reduce fraud and criminal activities in businesses.
An Innovation in Document Verification
When users look into the past and how document verification was done, users can see that it was a time-consuming process. The process was hectic and required a lot of manual work. Nowadays, time is of the essence and such long procedures cannot be employed as they cost a lot of money. For this purpose, a digital verification method was introduced that revolutionized everything. Now the data is stored in small chips that are the size of a nail. It has boosted both the time efficiency and accuracy of results.
Effective Verification Documents in the Banking Sector
KYC is about the verification of a customer’s identity. When customers want to open a new bank account or make an online document verification transaction, they provide documents for identity verification. When a customer wants to open a bank account, the bank also requires a document that shows proof of their income. The required information is extracted using the OCR technology (Optical Character Recognition) when the image is captured. The information from the image and identity of the customer is verified using complex AI algorithms and machine learning software.
Documents That Are Used For Customer Identification
Different documents are used for customer identification. The list is as follows:
- Government-issued documents: Driving license, Passport
- Image proof
- Credit or debit cards
Address Verification for Complete Identity Verification
KYC process and documentation also has address verification that extracts the following information from the documents.
- Full name of the customer
- Country
- Flat no.
- City
- Street
- ZIP code
The Procedure Of Address Verification
Step 1: A photo is required from the user to match it against the image on an Identity card document.
Step 2: Another document that has a home or business address is needed for authentication.
Step 3: In the third step, the address is evaluated and the results are shown to the customer.
Reasons Behind Address Verification
Businesses require address verification for preventing fraud, enhancing customer experience, and better agreement with FATF guidelines.
Preventing Fraud
It is extremely important for businesses because they want to prevent fraud through address verification. Any type of institution can use the technology. For example, financial organizations or e-commerce forums. According to recent reports, friendly frauds increase by 41 percent every two years. Looking at the financial loss, it is no surprise that fraud prevention has become vital. Hence, businesses should take discrete steps for protection.
Enhancing Customer Experience
Every business wants to improve the customer experience and when it comes to an online business, the responsibility is greater. Digital address verification enables companies to keep up to date with their users. In the end, it facilitates strong communication and the provision of a better customer experience.
Better Agreement with FATF Guidelines
As per FATF guidelines, all businesses should apply identity checks to protect individuals and the integrity of their companies. When online businesses apply address verification, it not only authenticates the identity but also makes sure that the business is complying with the given guidelines.
How Do Fraudsters Use Fake Documents?
Scammers use digital software to execute their illegal activities and then use the documents for their criminal activities. Following are some signs that show fake/ tempered documents:
- Holograms
- Rainbow prints
If any document has the above signs, the document is considered illegitimate and fabricated. The criminals also go one step further and steal the identities of the deceased people and use them for their illegal purposes.
What Documents Can Be Used For Address Verification?
Some of the documents that can be used to stop perpetrators in their tracks are:
- Employee ID
- Utility bills
- House Purchase details
- Rent related documents
- Debit card and other banking details
- Driving license
- Passport related details
Conclusion
The digital verification of documents has become extremely valuable in modern times. To successfully complete the process, the customer should have access to an internet connection and camera. When the identification is complete, the customer experiences a faster and safer onboarding experience which benefits them financially. Hence, the experience becomes more rewarding than before.
