Most of us experience the document verification process at almost every onboarding process, whether opting to open a new bank account or in today’s world, even the gaming industry requires the user to verify their documents before letting them play. All of this is due to the increase in frauds and thefts, especially on online platforms.
Online interactions are not as secure as they seem to be and the scammers are always creating new ways to harm the users for several purposes. New methods include major identity frauds such as using a synthetic identity where the cheaters use a combination of mix information, fake and real user data is manipulate to create a new identity for harmful intentions. Other methods include identity thefts in which the attackers pretend to be someone else to loot their belongings and assets.
To tackle this issue of fake identities the authorities of most organizations have complied with. The KYC verification process which completely evaluates a user before any interaction with the system. The FATF (Financial Action Task Force) clearly imposes the verification of a user’s identity with a complete identity document verification process to prevent the dangers of terrorist financing and money laundering. The document verification process is one of the major parts of the KYC compliance which is a must to complete the KYC check.
KYC Verification for Authenticity of Documents
The KYC Document process is a formal documentation process in which the user’s ID is authorized by verifying the documents they provide. This process is necessary and ensures the credibility of the user. The user is verified by most industries by checking the documents and verifying them. The digital document verification process is getting renowned in several sectors as it provides an efficient way to process documents in an automated way.
Document authenticity is also a major concern for most organizations, the digital way of document verification checks with different new technologies such as artificial intelligence and optical character recognition to validate the documents in no time. The system processes the documents with the help of these technologies to check for any type of forgery or modification of the document. It uses OCR (Optical Character Recognition) to read and verify the text on the documents to guarantee authenticity.
Which Documents Need Verification?
The identity document verification process requires a client to submit their legal documents at the time of availing a new resource. The user needs to provide the documents which are issued by the national authorities. The documents include:
User identity card contains all the general information which can verify the identity of the user. The new identity cards of most countries contain microchips that carry the digital identity of the user. The industries use the user’s identity card to complete the verification process.
The passport contains the user’s identity information for proper identification of the user. The passport is also used to evaluate the user’s identity.
The user licenses such as the driving license are also require by most firms to check whether the identity is real or not.
Proofs of Banking Statements
Document verification in banks is perform by checking for previous financial statements of the user. The bank asks for the user’s banking history mostly before letting them perform a high-risk transaction. The banking statements are also use for verifying the income of the client which serves as proof of their finances.
The KYC document verification process needs to verify the address of the user. Utility bills are use for the purpose of address verification. It provides the user’s location information to the organization which is necessary for the identity verification process.
How Documents are Verified?
The documents are verified by comparing the information provided by the user to the information extracted from the documents of the user. It uses digital as well as manual tools to verify the documents or Document Verification. The name, date of birth, and other elements of identification are match with respect to the industry for complete identification. Digital document verification is fast and secure as it provides an easy way to complete the KYC document verification process. With automate tools of AI and OCR digital verification is widely use by most sectors in the world. Some industries that involve high-security systems also require biometric information from the user such as fingerprints and face scans for protection.
Wrapping it Up
The KYC process is necessary to verify the identity of the user. It involves multiple verification processes to authorize a user. The document verification process is one of the KYC identity verification processes. Which verifies the user’s identity by evaluating the user’s documents. The documents include identity documents, financial statements, and address verification documents to complete the phase of document verification. It uses multiple ways to determine the user’s credibility by ensuring. The validity of the documents and verifying them by comparing them with the information given by the client.