Obtaining authentic information about a client has become a necessity for businesses. Financial corporations are vulnerable to fraudster activities so keeping criminals away can become challenging especially in these sectors. The primary goal for every business is to gain profitable revenues by establishing a secure customer onboarding process. The expectations of clients have changed with the advancements in technology. They want to attain a hassle-free experience with better security protocols established. On the other side, firms must ensure that the clients they onboard are compliant with the regulatory measures of anti-money laundering (AML) laws. The Know Your Customer (KYC) process has made the identification process much easier. Due to the increasing number of fraudulent activities, it has become essential for companies to provide a promising answer to the prevailing question of how to verify KYC documents in a comprehensive way.
The Dynamic Diversion from Manual Methods of Verification into the Digital Ways
The traditional method of verifying identities has proved ineffective as fraudsters used to devise loopholes for trespassing it. Not only this, the manual verification process consumed a lot of time and resources of the company which was tiresome. As humans are prone to make mistakes, manual data checks were always at a risk of missing out on some important information. In contrast to that, digital document verification solutions have changed the way for identity verification. Firstly, it has eliminated the need to visit an office to submit documents physically. Secondly, the enablement of automated data extracting techniques has minimized the chances of error due to a high level of accuracy.
How to Verify KYC Documents Efficiently?
Whether there is a need to perform document verification in banks, or whether it is about partnering up with a high-risk stakeholder, all have to go through a KYC process of identification to get their identities verified. Online Document authentication of KYC is as follows:
The initial step requires the user to upload an image of their government-issued documents such as driver’s licenses or passports etc. for verification purposes. The information submitted by the user online is then cross-checked by the proof of evidence to ensure the authenticity of the client. After verifying both of the details, the final results of the verification are generated depicting whether the client is a verified identity or a non-verified.
Documents Acceptable for Verification
Documents can vary from the jurisdiction of each country and the demand of each organization since every firm has its own business model on which they operate. The acceptable documents used for individual identification can range from passports, government-issued IDs, driver’s licenses, credit cards, etc. The primary set of data extracted from these documents can be name, address, date of birth, nationality, an image of the person, etc. Moreover, a document having crumbled or broken edges will not be acceptable to be used for verification. Next, the document is further verified by the AI-based document verification system which checks the originality of the document.
Preventing Document Frauds with KYC
Businesses utilizing KYC as a tool for verification can combat fraudsters and help companies to keep imposters at bay. Fraudsters have found new ways of performing desirable modifications on documents through advanced digital software. Any forged, falsified, or stolen document will be detected by the automated system of KYC instantly. Before any transactional activity could be carried out. Clients trying to register through a fake identity will be discarded at the initial stage of customer onboarding.
Constant Monitoring for Keeping Fraudsters Away
For keeping track of the current records of the clients, customer due diligence provides to be of great use. Performing background checks to verify KYC and review the authenticity of documents is the primary condition of CDD. once the customer is onboarded, it is essential to keep on monitoring the activities of the client to save them from any major setback. Any customer forming links with a high-risk individual in the near future will be detected by constant monitoring.
Wrapping it Up
Document verification has become a need today as fraudulent activities are upsurging in the global market nationwide. A manual document verification system consumes a lot of time and resources. The amount of labor consumed to check the authenticity of the document has been reduced. By enabling the digital document verification solution. Moreover, better results are generated without any risks of errors. Documents are also checked against the regulatory compliance. Of AML to determine financial risks to limit fraudulent activities from the global market. In addition, constant monitoring of the clients will help the company to detect cases. Of criminal activities at a fast pace before any transactional activity is carried out.
