Document Verification Process: Fighting Identity Theft in the Business World

Estimated read time 5 min read

Technological innovation has facilitated the corporate world, but it has also enabled fraudsters to commit sophisticated fraud such as identity theft. According to a report from the Insurance Information Institute, around $14 million reports of identity theft were shared by the victims. During the pandemic, online transactions increased because of SOPs, which resulted in fraudulent transactions and data privacy breaches. Unfortunately, online document forgeries have also increased over the years. Modern-day businesses want innovative solutions to combat the above issues. This is where implementation of the document verification process can ensure identity authentication through government-issued records. The AI-driven solution generates high-quality results within a few seconds. The following section discusses the complete record validation process. 

Utilizing AI-Driven Document Verification Process to Fight Fraud

During account opening or financial transactions, staff members ask the client to submit government-issued ID documentation such as a driver’s license or passport. The officer validates given details on the records and cross-checks customers’ pictures to discourage fraudsters. 

Nowadays, AI & ML algorithm-based solutions can replace verification officers with the help of software that enables ID validation remotely through digital document validation. This facilitates corporations to perform transactions remotely by validating the credentials of onboarding customers to fight identity theft as well as money laundering. 

With time, fraudsters are also using modern technology to accomplish their malicious goals. If organisations do not use state-of-the-art technologies to combat fraud, the company’s reputation becomes at risk. The following are 5 notable strategies that fraudsters use to manipulate victims. 

Top 5 Manipulation Techniques from Fraudsters

Fraudsters also use AI-driven and machine learning-based solutions to commit crimes and bypass security protocols. The following are 5 famous ways that cybercriminals use to exploit the system:

Using Illegitimate Documentation

Illegitimate documents are completely false records. They do not have elements of government-issued records, such as holograms and micro-prints. In this way, criminals bypass the security protocols of organisations. 

Utilizing False Documents

False documents aren’t forged or contain manipulations, but fraudsters actually steal them to circumvent the document verification process.

Making Use of Modified Records

Criminals use original documents to fool the verification procedure. Perpetrators use several modified records to create a new document which makes it tough for officers to identify any modifications. Nonetheless, an AI-driven document verification can highlight record forgeries by checking the font and alterations in the pixels. 

Blank Stolen Documents 

Authentic records initially have no information in them. Such type of documentation becomes fake when perpetrators leak the records from the manufacturing supply chain and input fake data. 


Counterfeit Documents 

There is fake money and counterfeit records, which are replications of originals. Usually, a perpetrator collects a template and inputs fake data and images. Such types of documentation can be bought illegally, facilitating the trade of counterfeits on the black market for a high price. 

Screening Documents for 8 Parameters During Document Verification Process

AI-powered record verification procedure tests multiple elements of the ID records while validating customers’ credentials. The 8 essential checks are below:

Performing Authenticity Checks

AI & ML models ensure that the records given for the document verification process are genuine. 

Executing Format Identification

AI-driven solutions are capable of identifying the correct format of the records. For example, working with a competent service provider helps verify records from thousands of templates from various countries to ensure global coverage and multilingual support. 

Authenticating MRZ Code

AI and machine learning models screen the Machine-Readable Zone (MRZ) code for authenticity by checking signs of forgeries within the given records. After completing the screening process, it decodes the MRZ code and cross-checks the data against the information on the given records. 

Identifying Crumpled Edges

Paper-based documents are susceptible to natural damage, which reduces the originality of data. The AI-driven document verification process performs multiple checks to identify crumpled edges on records that can decrease authenticity.

Exposing Signs of Forgery

Using accurate data, Artificial Intelligence (AI) models can correctly identify forgeries. It can even pick manipulations at a pixel level. Such types of tampering are impossible to identify even with a trained human eye. 

Confirming Holograms/Rainbow prints

Government-issued records have special holograms & rainbow prints. AI-driven document verification process have the capacity to identify any alterations in holograms and rainbow prints.

Validating Special Paper & Ink

To fight identity theft, government-issued records use special paper & ink. AI has the power to authenticate special paper and ink on given documentation.

Checking the Micro prints

Government-issued records have micro prints that serve as another layer of security for fraud prevention. In this way, the AI uses micro prints for verifying records.

The Bottom Line

The implementation of the ID document verification process attracts genuine clients to safeguard modern-day businesses. The state-of-the-art record validation procedure analyses data in given records for identity verification by cross-checking information.

Utilizing document verification process, businesses can not only combat identity fraud but also ensure a positive experience for their users. Thereupon, businesses can ensure compliance with KYC & AML guidelines. 



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