Identity authentication through document verification is crucial for the customer onboarding process in a financial organization. It also ensures swift KYC/AML compliance. Every financial organization, such as a bank, digital assets broker, or cryptocurrency exchange, must integrate adequate software solutions into its KYC mechanisms for document checking. SaaS companies offer multi-faceted security solutions to prevent document forgery and identity theft and detect fake and counterfeit documents. A fake document checker is used for document validation of customers during the onboarding process.
Significance of Document Verification in Banks
Document checking is the first step in the know-your-customer procedure. Banks need authentic and efficient document verification approaches to ensure they are not unknowingly becoming a medium of illegal monetary transactions. The required verification documents during the KYC process include all the government-issued ID proofs like licenses, passports, utility bills and financial statements. The authentication of these documents confirms their ownership and customer legitimacy. A fake document checker is an ideal security solution for your bank because it detects if a document is forged or stolen.. Therefore, it allows banks to achieve seamless KYC/AML compliance and mitigates the risk of document counterfeiting while protecting customers’ data.
Verification Document Procedure in Financial Organizations
Banks and other financial organizations traditionally implement their customers’ document verification in three to four steps, including the collection of verification documents, data extraction, and document validation. Manual document verification methods have proved outdated and inefficient in fraud deterrence. The accuracy and transparency of the process are compromised, reducing the credibility of a financial organization. Manual procedures face the risk of human error. Therefore, an automated fake document checker is the need of the hour for every organization, including financial institutions like banks. It allows error-free document checking and ensures that all the regulatory standards are complied with.
Automated Document Checker to Detect Forged Documents
A financial organization must understand the difference between false or counterfeit documents before proceeding to fake document checker solutions. Firstly, forged documents are authentic identity documents but have been altered in some places. For example, the forger changes the photograph, name, or date of birth on an identity document like a passport, driver’s license, or birth certificate. Similarly, false signatures on a bank document, such as a cheque, are an example of a forged document. The fraudsters use high-tech tools that make the whole document look authentic and like a government agency has issued it. Therefore, financial organizations, banks or cryptocurrency exchanges must acquire fool-proof and top-notch security solutions like a fake document checker to detect forged documents.
Document Checker Online Solutions to Identify False Documents
A fake document varies from a forged document because it is entirely false and is not generated or recognized by any government agency. False documents do not have a legitimate and legal source and are fully created by someone. For instance, a fraudster can make an entirely false ID, driver’s license, or social security card and use it in a loan application. According to a report, fake IDs grew by 6 per cent in 2020. This indicates the gravity of this challenge because the world is advancing rapidly, and technological innovations have created more opportunities for fraudsters and financial cybercriminals to engage in unlawful activities. Many fake documents or images seem entirely genuine. However, technology has also enabled organizations to detect false documents when specific details, such as seals and numbers, are missing. Hence, financial institutions must resort to document checker online solutions such as fake document checker.
Document Verification Checks Using ICR Technology
Intelligent character recognition is an extraordinary innovation in AI-powered data extraction technologies. It proves essential in fake document checker solutions as it enhances data extraction during the document authentication. ICR aids document verification checks by extracting and converting document information into digital content. Its powerful features, such as deep learning capability, make it a unique and innovative technology. It can detect any document format and layout and verify the person’s identity. Moreover, its handwriting recognition is another one-of-its-kind characteristic that processes data promptly and with utmost precision. Financial organizations must integrate AI-based intelligent character recognition as a part of their fake document checker mechanism to identify false and forged documents. ICR’s continuous learning ability proves time and cost-efficient in the document verification procedure. It offers convenience to customer onboarding while guaranteeing customers that their data is shielded from fraudsters. Most significantly, the fake document checker service ensures AML/CFT compliance.
In a Nutshell
Fake document checker is an essential document verification solution for financial organizations to identify fake and forged documents. It leads to mitigating fraud and preventing financial crimes like money laundering. Hence, it ensures effective AML/CFT compliance.