During the onboarding process, organizations can quickly verify new customers through the authentication of their ID documents. It’s crucial for those organizations that regularly deal with high-value transactions, such as cryptocurrency companies, financial organizations, or any digital service provider. Through document verification, companies get to know with whom they are doing business and verify new account applications.
Document authentication works by scanning official documents, including bank statements, passports, or driving licenses. The document verification process involves the authentication of different features such as watermarks, fonts, stamps, or other security features. It also includes verification of personal data, including name, address, or date of birth, that can be checked against third-party data sources. Document authentication is essential for service providers who sell age-restricted products or services, such as car hire firms. Furthermore, personal documents such as agreements, wills, and property documents (that can be forged) are also verified through the document verification process.
Importance of Document Verification
If a digital service provider is not verifying documents, they are putting themselves at risk of being scammed by fraudsters. These people use sophisticated scamming techniques. Moreover, scammers always search for chances to fool loan agencies, financial institutions, and other digital service providers to extort money. These scammers often do this using stolen and forged documents.
When a scammer gets approved for a loan or credit card, their only motive is to spend the money and disappear quickly. As a result, a financial institution falls into bankruptcy. The same is the case with other digital service providers. Scammers use forged documents and affect the reputation of a business by committing financial crimes through fake documents.
Unfortunately, this issue persists in the financial sector. According to studies, identity fraud in 2020 led to $43 billion in losses. Covid-19 has also increased scam incidents for government agencies, such as false unemployment claims. Online document verification helps scour businesses from fraudulent attempts and prevents serious incidents that can result in a huge loss.
Benefits of Identity Document Verification in Financial Services
Identity verification is an ultimate necessity for companies to ensure it’s not at risk of fraud and financial loss. Here are some ways financial services companies benefit through document verification service.
-
Fraud Prevention
Identity verification enables you to detect document fraud. This includes loans being used for criminal motives or people who steal identity documents for submitting false information.
-
Age Verification
Document authentication helps in verifying the age of people. In the case of availing such services that have an age restriction, identity verification enables companies to allow only legitimate customers.
-
Criminal Activity Protection
Document checks help businesses to avoid falling victim to threats of financial crimes such as money laundering, terrorist financing, and other activities that can land companies in legal issues.
-
Cybersecurity
Document verification services protect your organization from hackers since they authenticate the documents and stop fraudsters from accessing sensitive data.
Why Verification of Bank Statements is Necessary
During the application approval process, lenders need to determine the ability of clients to repay the loan. For this, the best way is to check their financial records. Verification of documents not only authenticates the income of clients but also shows their ability to save. Companies can validate bank statements and analyze clients’ spending habits through online identity verification services. With this, businesses can be able to make better and faster lending decisions to prevent any intimidating situation.
Benefits of Using Online Document Verification Services
Filling out loan applications, insurance, or other financial services can be time-consuming. Numerous steps are required, which is why many customers drop out of the application process. Through online document verification, the underwriting process is quite easy. Customers simply need to use their mobile devices to submit documents and upload them to the system. Online authentication services instantly verify the information and allow customers to process the application swiftly.
Conclusion
In this digital era, businesses must follow strict security measures to avoid any daunting incident they can face through fraudulent attempts. Document Verification is essential to secure companies from scammers using technology to make businesses prey to their evil intentions. Online document authentication services provide a quick verification solution and ensure businesses’ safety from cyber attacks. It leaves no room for escape for scammers who always search for the latest fraudulent techniques. The motive behind this is to steal identities, create fake documents and commit financial crimes.