Document Verification – A Way To Secure Businesses by Deterring Identity Fraud

Document Verification

Both online and offline platforms, including banks, e-commerce websites, and even airports require basic proof of identity. Document verification is a process that has been in use for ages and is the basic way to authenticate a person’s identity.

However, the ID document verification is not the same everywhere. Different countries have different regulations, and so do the various organizations within one particular country. For instance, global documents such as ID cards have multiple languages, i.e, usually one of them is English and the other is the respective native language. Apart from this, regulations and requirements also vary, depending on the number of resources, crime rate, etc.

The Risks of Document Frauds

Faking identity and using someone else’s documents is a crime. There are various ways that imposters carry out to cause harm to someone. In some cases, it is simply editing the person’s name using photoshop, and using someone’s online space to post undesirable content. 

Verification of documents allows organizations to securely onboard their clients and know who they are dealing with. Governments encourage organizations to follow KYC and AML compliances developed by authorities such as FINTRAC, FATF, etc. Verifying a document used to be done manually when technology was less advance. However, digital solutions of today have automated systems, making everything easier.

Importance of Document Authentication as part of KYC

Modern technology allows businesses to authenticate documents digitally. Using AI, the companies are able to identify potential customers in their software applications and websites.

The process starts by requiring a photo of the customers’ ID document, and the verification of documents uses OCR technology to detect information. In a matter of seconds, the software is able to differentiate between an original document and a fake one. In case of correct valid documents, the users get onboard. Whereas, fake document cases are reject.

Apart from this, The main methods of verifying data against secure records are biometrics and artificial intelligence. In high risk, a check of a bank account. Inconsistencies in records, as well as unusual transaction amounts, are considered red flags.

Document Attestation

The document attestation process is used for original documents. Every ID document has certain unique characteristics. These characteristics are checked for authenticity, including an MRZ (machine readable zone) code, which is usually found at the bottom of ID cards. Apart from this, documents that have turned over or torn edges, and also those having special ink or micro prints are also part of the process of verifying documents.

What are the Types of Fake Documents?

Unauthorized documents

The documents that lack the essential key indicators of an original document, such as a specific pattern within the ID card, or other missing characteristics. These documents are fake and purposely made.

Tampered documents

The purpose of editing these documents is to alter the details and use them for illicit purposes. The aim of the fraudsters is to manipulate the system by changing names, writing styles and other such characteristics.

Original Documents belonging to someone else

It is sometimes possible to misuse original documents. However, they belong to someone else.

Effectiveness of Document Verification

As mentioned previously,  the process to authenticate documents can distinguish between all kinds of fake and tampered documents. Earlier the verification process used to involve physically going to the bank and waiting long hours to register. It has now been so efficient that it takes only a matter of seconds.  

With improved AI technology, criminals also find newer techniques to commit illicit activities. With the increased digitization of institutions, risks of cybercrime have also increased. Therefore it is necessary to authenticate documents before customers onboard. 

Online document verification ensures that only the legitimate customers are onboarded and this reduces the number of frauds using fake documents. The accuracy and convenience that these document checks provide make for secure business and gain the trust of the customers.

Final Words

In conclusion, document verification is a crucial part of the digital world we live in today. The use of AI has greatly enhanced the system, making it time and cost-efficient. The fact that hackers and identity thieves make a lot of money by taking away what belongs to someone else is an indication that organizations do need document verification


IITSWEB is the Chief Business Development Officer at IITSWEB, a Magento design and development company headquartered in Redwood City, California. He is a Member of the Magento Association and an Adobe Sales Accredited Magento Commerce professional. Jan is responsible for developing and leading the sales and digital marketing strategies of the company. He is passionate about ecommerce and Magento in particular — throughout the years his articles have been featured on Retail Dive, Hacker Noon, Chief Marketer, Mobile Marketer, TMCnet, and many others.

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