In the age of digitization, industries experience various challenges, such as identity fraud. It is a serious felony that badly influences victims. The crime results in financial repercussions to organizations, around $6 billion. An identity document verification system is an advanced online service that safeguards the sensitive data of clients reliably. The progressive approach ensures compliance with AML/KYC regulations to protect industries from heavy fines. The integration of AI & ML software makes sure that the identity document verification system catches in real-time. Here’s how AI-driven document authentication helps secure organizations against identity fraud.
Ripple Effect of Identity Fraud Cases in the US Society
Utilizing fake credentials is a serious felony that criminals use to exploit all the advantages linked with the victim’s profile. Hackers apply sophisticated methods to finish their malicious goals. Businesses that do not opt for advanced ID verification solutions experience data breaches that can ruin their credibility. Hence, the implementation of record verification solutions is highly recommended.
Role of Identity Theft and Assumption Deterrence Act 1998 (ITAD) & US Department of Justice
Earlier in the 1900s, congress introduced the ITAD Act of 1998 to combat identity fraud. As per the US Department of Justice, identity theft is a serious felony with critical criminal penalties, for instance, imprisonment longer than 10 years and capture of all materials that supported criminal activity.
The application of powerful security measures will reduce rising cases of identity theft. In accordance with the latest statistics, financial damages from identity fraud have grown to $200 million.
Intervening of Global Regulatory Agencies
Reducing Identity fraud is the chief purpose of KYC/AML standards. Agencies such as FinCen, FINTRAC, and FATF emphasized that all businesses must implement KYC standards and take active steps against money laundering and other financial crimes. Execution of Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) will guarantee identity authentication of all consumers in the course of the authorized onboarding process.
In earlier days, experts applied AML checks and KYC verifications through on-premise attestation. Nevertheless, technological innovation has ensured easy accessibility of identity document verification solutions around the world. Integration of AI & ML software has elevated the effectiveness of online security protocols. Customers can use ID document verification solutions through online platforms by utilizing any smart device.
Process of Identity Document Verification Solutions
Integrating artificial intelligence technology with live document authentication solutions guarantees customer satisfaction. The software instructs clients in submitting government-issued documents during the consumer onboarding process. The implementation of OCR software captures information from consumers’ records and securely stores it in the organization’s database.
Only in the case of manipulation-free information, do consumers get final verification output. Clients must be aware that identity document verification solutions only generate output from government-issued records that have shiny holograms and microscopic prints as security measures. For example, clients can submit their passports, and driving licenses. If hackers try to violate security measures, technology will immediately stop document evaluation and reject the request. The general mechanism of the ID document verification system is below.
Steps Behind Identity Document Verification
. AI-driven software examines the originality of records during the ID document verification procedure
. The product also evaluates if consumers have submitted accurate data or not. Contingent upon that, given information, is incorrect, the software guides clients respectively. Identity document verification solutions also process records in various global languages such as Italian and Spanish
. AI-driven technology processes MRZ code and assess the originality of the client’s documentation, utilizing information for decoding and cross-checking
. In the case that, documents have natural wear/tear, the authenticity of records is significantly reduced. The identity document verification product scrutinizes documents for crumpled edges as well
AI-backed ID document verification software is more efficient than traditional approaches because fraudsters use complex deception techniques that outdated methods cannot detect. Microscopic prints and rainbow holograms separate official documentation from forged ones. Consequently, AI-supported identity document verification solutions guarantee robust security against identity fraud.
Concluding Thoughts
Implementation of identity document verification solutions guarantees higher quality of output. The document attestation services also cross-evaluate data against hundreds of global watch lists to deter criminals. Integration of AI & ML technologies boosts the effectiveness of the identity document verification process and ensures higher customer satisfaction. Reducing identity theft and other financial fraud incidences are massive advantages of the process. Advanced online ID document verification solutions remove the need for an employee to do the work. Consequently, financial institutions can make sure compliance with AML/KYC regulations to control money laundering and terrorism financing cases.
