Some 3–6% of the 10 million government-issued ID credentials in France are said to be issued based on false identity documents. A report by Javelin Strategy and Research predicted that identity theft will cost the United States $56 billion that year. Companies have come to understand the critical need of using reliable and automated document verification solutions for fraud protection and detection as a result of these numbers.
How can Document Authentication Avoid Fraud?
At some point in your life, you’ve had to provide proof of who you are in order to establish a bank account. A passport, driver’s license, or other government-issued identification card might have been among them. These papers had better have been manually checked by a verification officer.
These days, document verification services driven by artificial intelligence are used instead of human verification officers. These services can also be provided digitally, making traditional bank visits unnecessary. What exactly about this helps prevent fraud? Using cutting-edge models and algorithms, the customer’s identification documents are checked as part of a document validation procedure. The fraudsters’ use of contemporary technology to perpetrate their crimes makes it all the more imperative that we use the same tools in order to bring them to justice. The following are examples of forgeries that might be detected by a sophisticated document authentication system.
– Modified Documents
These are fake IDs made to look like the real thing. The alterations to these papers are made very subtle so that only a trained eye can tell. However, the organisation would be notified immediately by document verification solutions if any fraudulent paperwork was submitted.
– Illegitimate Documents
These papers have been forged entirely. The absence of holograms, rainbow prints, and other commonplace features on documents is easily detectable by document verification systems.
– False Documents
Thieves use fake or stolen identification papers to get past security checks at airports, banks, and other high-traffic locations.
What Processes Are Involved?
The following actions are carried out by document verification to tackle the growing problem of ID fraud.
1. Authenticity Checks
To determine whether or not an ID is legitimate, machine learning and AI algorithms are used to analyse its data. Such features make it simple to detect genuine papers while also eliminating any possibility of a fraudulent one.
2. Format Identification
Verification systems for documents may recognise regionally relevant document types.
3. MRZ Code
By determining whether or not a document’s Machine-Readable Zone codes are genuine, AI technology may also be used to screen out forgeries. Secret data is encoded in these codes. The document might be marked as fake if any alterations have been made to it.
4. Detecting Crumpled Edges
Wear and tear on identification papers is inevitable over time. A document verification solution may nevertheless confirm its legitimacy despite this. This is so because wrinkles or creases on the margins are easily identifiable.
5. Photoshop Detection
Identity documents are often altered by fraudsters and thieves to falsely portray the holder as the document’s owner. However, owing to advancements in AI technology, even the smallest pixel shifts may be picked up by a document verification system.
6. Hologram Verification
Hologram stickers are often used on passports and identification cards to boost their seeming legitimacy. Since fraudsters manipulating them typically utilise complex methods, it’s difficult to notice when they’ve been tampered with. If there are any inconsistencies in these holograms, document verification software based on artificial intelligence will be able to spot them.
The Endless Benefits of Document Verification
By checking identities and vetting documents, businesses can easily follow KYC rules. In addition, the solutions enhance the client experience by reducing the time it takes to verify information. Additional advantages of adopting a document verification service include the following:
- In comparison to traditional techniques of authenticating documents, this one is quick and easy to use.
- The danger of fraud may be greatly reduced if it is caught from the beginning of the onboarding process, when fake papers and suspicious consumers are easily uncovered.
- The system separates the honest buyers from the cheats.
Key Takeaways
- In a wide variety of sectors, document verification solutions are gaining popularity.
- It’s worth it since it helps stop fraud and lessens risks.
- This verification technique is used by banking establishments to differentiate between fake users and genuine users.
- This approach uses AI technology to effectively rule out any possibility of ID fraud being done using forged papers.
