The rise of digitization has influenced modern-day industries positively, but they are still facing various issues such as identity theft. It is a serious transgression that is extremely detrimental to victims. In this way, companies also face financial deficits exceeding $5 billion. The document verification solution is a smart record examination service that safeguards an organization’s credibility. The intelligent technique also facilitates compliance with AML/KYC requirements to evade bans and hefty financial damages. Integration of AI & ML technologies entirely streamlines ID document validation systems. In this regard, AI-driven record evaluation checks create a strong defense mechanism against ID scams.
Serious Consequences of Identity Fraud in the USA
Exploiting an entity’s credentials is a heinous transgression that cybercriminals employ to get the advantages associated with the profile. In this way, hackers apply deceptive approaches to achieve their malicious objectives. Modern-day businesses that do not implement intelligent document validation solutions face data privacy violation issues that can be extremely problematic in the longer run. Hence, the implementation of smart document checker services is beneficial for present-day industries.
Identity Theft and Assumption Deterrence Act 1998 (ITAD)
Previously, the US congress introduced the ITAD Act of 1998 to effectively mitigate ID fraud incidents worldwide. As per the latest guidelines of the US Department of Justice, crimes such as ID scams are seriously problematic, having serious repercussions for the perpetrators such as imprisonment for more than ten years.
Only the application of powerful defense mechanisms will successfully mitigate and manage cases of ID theft. As per the latest research, financial deficits that present-day corporations encounter from ID fraud have exceeded $200 million.
The Contribution of Global Regulatory Agencies
Mitigating ID fraud and other prevalent crimes is the main objective behind AML/CFT guidelines. FinCen, FINTRAC, and FATF departments have stressed that all corporations worldwide must abide by KYC verification guidelines to control money laundering and terrorism financing cases actively. Utilizing Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) procedures will streamline the process for all users to guarantee better customer care.
Technological innovation has facilitated the instant accessibility of document checker services from verified vendors across the globe. Artificial Intelligence & Machine Learning (AI & ML) technologies have improved the efficiency of ID validation systems and AML screenings. Thus, customers can fulfill their needs in real-time without any limitations.
The Whole Procedure Supporting Document Checker Solutions
Applying artificial intelligence technology with record validation systems from a trusted vendor streamlines customer care. The intelligent solutions guide users to submit government-issued documentation in the course of enrollment. OCR models instantly execute data extraction on users’ data and save them in well-encrypted cloud storage for convenient availability.
Only when users provide government-supported documentation, do consumers receive final verification results quickly. Clients must remember that a document checker system only accepts government-issued documents because they have unique characteristics, for instance, specialized ink and paper. In this regard, users can only provide their driving licenses and rental agreements for evaluation. If cybercriminals try to bypass the security protocols, the document checker solutions from a verified company will quickly halt the screening process and alert the authorities. The complete working mechanism of the KYC documentation check system is below:
Four Steps Supporting the Document Checker Solutions
- The AI-driven solution examines the authenticity of documentation during the record evaluation process
- Intelligent services from third-party companies also check the correctness of data from clients. If the provided information is false in some incidents, the document checker system will instruct clients accordingly. ID record validation services easily compute multilingual information from remote clients without compromising on quality
- AI-supported solutions from trusted vendors compute Machine Readable Zone (MRZ) code and check the originality of documentation by cross-evaluating the information
- In case records have a natural decline in standard, the authenticity of documentation lowers significantly. The document checker solution from a trusted supplier also examines them for crumbled corners
Implementing traditional document checker techniques had various loopholes that cybercriminals could easily exploit with the application of sophisticated methods. Smart verification solutions have powerful security protocols that discourage fraud attempts. The unique characteristics in records, for instance, holograms and rainbow prints, are the features of government-issued documentation. In this way, AI-supported record examination systems discourage cyberattacks powerfully.
Applying document checker solutions from trusted parties ensures high-quality results. In order to mitigate fraud, the online validation product also evaluates data against various watch lists (e.g., PEPs). Utilizing AI & ML software improves smart verification solutions’ efficiency and enhances customer care. Reducing ID fraud cases is a huge benefit of the document checker procedure. In present times, using smart validation services is extremely beneficial for the corporate sector. Thereupon, banking service providers can easily abide by KYC regulations to control identity theft across the globe.