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7 min read

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August 8, 2022

The Ultimate Guide To Document Verification: Benefits, Challenges & Importance

Want to know about document verification? Click here to learn about document verification meaning, importance, process & learn how digital document verification works!

What is Document Verification?

Document verification is the method of confirming a client's identification by running multiple validity checks on the ID papers given by the consumer.

AI-powered document verification services assist financial institutions in detecting and mitigating the danger of fraudulent identities & identity theft. It can see tiny fabrications or changes in a single picture of an ID. The document verification system checks the holograms, micro prints, typefaces, and MRZ code. Customers may quickly authenticate themselves by sharing a photograph of their ID papers from their PCs or cell phones, like ID cards or passports.

Document Verification Process

The process of validating the legitimacy of a document is known as document verification. Legally issued papers, such as a driving licence, bank statements, or similar government documents, are often the most trusted and reliable. Badges, watermarks, typefaces, and carrier elements are all authenticated as part of the procedure. Furthermore, identifiable data from the beginning of the ID is compared to the same data taken from the document's machine-readable zone.

Applicants for document verification no longer need to remain physically available for their papers to be validated or to verify their face to the picture ID using digital onboarding. Using mobile image capture software, the applicant effortlessly uploads a picture of their govt ID with a selfie.

Types of Document Verification

There are several forms of document verification depending on the criteria, as stated below:

To validate an individual's qualifications and details regarding the Educational Credential asserted.

  1. Verification of Education Certificates

This validates an individual’s qualifications and educational details as per their asserted credentials. This involves:

  • Obtaining a copy of the Grade sheet from the Responsible Authority
  • Dates of attendance
  • Year of graduation
  • Number of the roll/registration/Hall Ticket
  • achieved percentages/grades
  1. Verification of Professional Licenses/Certificates

Validating the period of the license/certification grant, e.g., CPA, CA, LLB, CFA, & the current state of the licence.

  1. Pre-employment Background Check

This validates an individual's certifications and details about past employment. It entails the following steps:

  • Employment period
  • Holding position/s
  • Remuneration
  • Reasons for departure
  • Status of rehiring
  • Tracking and evaluating performance
  • Applicant's mindset, honesty, and personal character, as well as any specific successes
  1. Verification of a Criminal Record

A criminal record inquiry would assist in determining whether or not the applicant has a criminal past in their area. The regional police department would examine the nominees' criminal background under their home's authority.

  1. Verification of Personal or Professional References

Professional reference checks may frequently provide helpful information about candidates' working practices and attitudes. It involves obtaining the following information:

  • The candidate's primary work duties throughout the association term
  • Weaknesses & Strengths
  • Qualities of a Team Player
  • Leadership Characteristics
  • Candidate’s attitude, honesty, and individual reputation
  1. Address Validation

Address verification aids in validating the candidate's/place applicant's origin and other pertinent information. The following details will be clarified:

  • Confirmation of residence
  • Stay Duration
  • Accommodation type
  • Status of Residence (Ownership/Rental)

Importance of Document Verification

Document verification, which checks the validity of ID papers throughout the client onboarding process, may assist organisations in rapidly and securely verifying new customers.

Institutions and organisations are continually challenged with breaches, identity fraud, & theft on the web platform. To minimise such risks, document verification is important. You would be requested proof to prove your identity before accessing your account. This material is compared to earlier information. The process will terminate if the details and papers do not match. In brief, document verification seeks to prevent all types of risks.

How Does Digital Document Verification Work?

Document verification is accomplished by a series of possible validating checks which examine the ID and verify its legitimacy while comparing it to data in a system. The following are some examples of validation checks:

  • Facial Detection

Documents with picture ID include crucial details for identity identification. Such identity confirmation systems will frequently be able to extract picture information from ID and match it to internal photographs.

  • Data Correlation

Several government forms of identification include related information on both the front & back. An identification service must connect that data to ensure that the given ID is valid and refers to a specific person.

  • Document Scanning & Fraud Detection

It is vital to have systems scan papers for crucial data, such as ID information, barcodes, and so on, & to link that data to system information.

  • Database Verification

Scanning of a federal ID would require verification via official datasets, and verification systems would frequently have access to various national data sets (or secured copies of these datasets) to verify these papers.

  • Photo Liveness & ID Inspections

Being part of an upgraded biometrics & verification approach, these systems will frequently conduct picture checks versus smartphone selfies. This will not only allow for quick picture comparisons versus IDs to integrate biometrics & document validation, but it will also incorporate liveness testing to ensure that the correct individual is there and avoid fraud.

Benefits of Using Online Document Verification

  • Rapid turnaround time

Instead of physically submitting identification documents or emailing them and waiting for their validity to be checked personally, online document verification solutions can rapidly validate the identity documents supplied electronically.

  • Simple to Use

Checking anyone's identification has grown as simple as providing a digital photo of an identity document such as a passport or driver's license using the most recent document verification technology. You may accomplish this in person with a webcam or distantly using a picture taken with your smartphone.

  • Quick Services

Corporations that depend on online document verification might profit from offering clients a quick onboarding environment. Clients are not required to wait in huge lines or be physically available to confirm their identification. The entire procedure improves consumer reputation and enhances brand awareness.

  • Combat Identity Theft

Online document verification is one-way organisations prevent identity fraud by identifying users depending on their identification papers.

  • Frictionless User Experience

The digital document verification method is a simple technique that allows sectors to acquire their consumers' confidence.

  • Flexible Processes

Document verification systems manage the whole document verification procedure, making it uniform and flexible across regions.

Challenges of Online Document Verification

  • Various Documents

On average, about 6,000 types of papers may be utilized for ID verification worldwide. A picture of the Identity, the accessible information on the Username, and any further information saved inside the document are used to validate an ID document & verify a user's existence. After the data has been extracted, it is checked for legitimacy.

  • Difficulties in Ensuring Accuracy of Identity Verification

Maintaining a robust client base and developing a reputation as a trustworthy service provider depends on executing accurate, quick, and consumer-friendly verifications. This suggests using a continuous identity verification system to do repeated assurances and engage huge audiences. In this context, fraud protection through KYC processes is critical. Ongoing monitoring inspections also entail frequently assessing current clients for authenticity and dependability.

  • Finding the Right Balance between User Experience & Compliance

Financial firms, banks, & other businesses must adhere to stringent restrictions. These rules range from one firm to the next. These firms require a robust online Identity verification procedure. They must also prioritise a consistent consumer experience. Most clients are more concerned with pleasant enrolling expertise than a precise and secure procedure.

  • Trust, Privacy, and Data Security

Privacy safeguards are required for services that rely entirely on individual, biographic, or biometric information. Consumers must know how their information is managed, kept, and preserved. Banks and financial companies should also give customers some control over their data.

What are the Use Cases of Document Verification?

  • Avoiding Fraud

Verification & authentication services aid in the prevention of fraud by identifying suspected offenders before any harm is done.

Out-of-date information or data discrepancies can rapidly indicate concerns that require more investigation. Cross-referencing dozens of data pieces, sources, & fraud flags raise the bar for such a fraudster to clear. And, relying on your threat mitigation plan, a segmented method for identity verification can further minimise fraud.

  • Acquired Compliance

Compliance standards guarantee that organisations have mechanisms to protect themselves against financial fraud, such as money laundering and terrorist funding. In many cases, achieving compliance entails validating your consumers.

Online identity verification ensures that the information used to establish each account corresponds to a real person, not a forged identity. They may then cross-check the details against reputable and trusted information sources to tell your company about who its customers are, allowing you to satisfy compliance needs and prevent administrative fines.

  • Increase Internet Trust & Safety

Due to online document verification, users can trust outsiders in various markets or person-to-person activities. Identity verification platforms and services have implemented efforts to secure the trust & safety of all users.

Whatever your use case, precise and efficient identity verification is critical for your company. Protecting your company — and your consumers — is crucial to running smoothly and safeguarding your company's image.

Conclusion

You must be efficient while confirming Identity documents online. Users can swiftly and safely enrol authentic clients by using easy picture capture and automated verification technologies.

Successful document verification also entails knowing you're capturing fake, expired, and pirated IDs earlier. Fraudsters could use them to conduct fraud.  Identity documents differ by nation, as do consumer expectations & attitudes regarding privacy, efficiency, and security. 

FAQs

  1. What is document verification?

The process of validating the legitimacy of a document is referred to as document verification. Legally issued papers, like the driver's licenses, bank statements, or other government documents, are often the most trusted and reliable.

  1. What is the procedure for document verification?

Document verification operates by scanning legal papers such as bank statements, driver's licenses, or passports for holograms, watermarks, stamps, typefaces, or other security elements.

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