Fraudulent activities prevail daily due to the rapid use of digital means; hackers are coming up with new techniques and tricks to scam. They use fake identities and photoshopped documents to bypass the customer’s account. They pretend to be the client and use their name or charge for illicit purposes. In Germany, in 2022, more than 136,865 cases of cyber crimes were reported; this figure is continuously increasing. An identity verification document is a quick fix against all these issues; a rise in revenue can be observed for companies that are correctly implementing it. The government has made it essential for companies to be compliant with the rules and regulations implied by the legal authorities.
What is the Verification of Documents Online?
Digital means are used to verify the legal papers of the user; these documents include identity cards, residential addresses, bank statements, and utility bills. It differs from manual authentication, as in traditional ways, no digital means was used, and the operators performed every task. Traditional standards were time-consuming and prone to human errors. Digital verification is instant; a single click can complete the authentication. It is convenient for the company and client and is favoured among them. The company has to hire fewer employees; the whole task is performed by artificial intelligence and the latest machine learning. Customers also do not have to visit the office; their verification is done from their homes.
Components of ID Verification Document
Document verification online is done to check the authenticity of the legal papers; any photoshopped or illegal documents are immediately rejected.
The following documents are discarded in the validation:
- Illegal Papers
The documents that government officials do not issue lack the stamps or signatures and are refused to verify.
- False Documents
Hackers use fake identities and utilize fake documents; these documents are mostly stolen and belong to someone else. Scammers pretend that they are the owners of these papers.
- Photoshopped Documents
Specific changes have been made to the documents without the approval of government officials. These papers are not valid as data is manipulated in them. For instance, the name or date of birth is modified in it.
- Documents Containing Irrelevant Data
Papers that do not contain the required data are rejected; for example, if the user is asked to submit a bank statement for this month, but the document submitted by the client contains the previous month’s data, then no verification can proceed.
Uses of Document Validation
The following are the uses of identity verification documents:
Prevent Fraudulent Activities
Document validation aids in performing a risk assessment of the clients, as only verified clients are onboarded; after their entrance into the oraganization, they are continuously monitored to check that they do not get involved in any fraudulent activity. The salary slip of the client is demanded, and they have to submit their other source of income as well. In this way, they prevent the company from any expected future loss.
Increase Trust and Security
Companies can build the trust of their clients by hedging their credentials and safeguarding them from hackers. Customers prefer companies that keep their data safe and provide user-friendly environments. Clients usually get fed up with the lengthy documents; therefore, they go for the company that performs document validation. These verifications are so simple that even a non-specialist can be easily verified; clients do not have to read the wordy user manuals. They just have to put their finger on the scanner or stand still in front of the camera.
Comply with regulations
Rules advocated by the legal authorities are mandatory for the companies, as they are for the betterment of the client. They keep the company safe from fraudulent activities and monitor the customers’ activities. Businesses that do not follow the guidelines have to face heavy penalties, and the company’s brand image is also affected. A company notorious for cyber crimes loses its brand image, and clients do not associate with such companies.
Identity verification documents prevent fraudulent activities, money laundering and data breaches. Developed countries are implementing these solutions in every industry, and remarkable increases in the companies’ revenue are observed as it saves the cost of unnecessary employees and lengthy paperwork. This cost-cutting technology has simplified the day-to-day activities of the companies. These solutions are considered the best investment; profit from such financing is definite. Clients choose the companies that are correctly implementing ID verification documents. Satisfied customers recommend the company to their family and friends, and Businesses can also enhance their client retention rate. These systems are reliable and authentic, as the whole task is performed digitally.