A Comprehensive Guide To Understand Online Document Verification Solution


Every organization requires verification of documents such as ID cards, driving licenses, passports, etc for onboarding new clients and business partners. This process makes organizations acknowledge the legitimacy of customers,  business partners, and investors. The document verification process is the baseline of all the regulatory compliances such as Know Your Customer (KYC), Know Your Business (KYB), Anti-money Laundering (AML), and Know Your Investor (KYI). It enables organizations to have secure environments for seamless business onboarding. 

Why Is Online Document Verification Essential For Businesses? 

Imposters use fake documents to reach firms for several criminal acts. They mainly use fabricated and faded documents to access organizations for money laundering and financial terrorism. Businesses suffer from network breaches for having unauthorized and illegitimate entities on board. In this time of digitization, businesses are moving toward online systems for registration, user onboarding, and other processing. Companies require a reliable solution for the ID verification of identity documents. The online document verification solution utilizes artificial intelligence and machine learning technology which activate sharp mechanisms of ID verification. This process helps to identify the legitimacy of provided data and verify documents if the individuals are who they claim to be. 

Online Document Verification Process- Work Mechanism

The online document verification process involves a step-by-step process. It may take place as follows;

Collection Of Individual Information

Companies offering digital business services. They ask individuals to submit scanned images of various documents. Individuals are free to submit scanned images through webcams or Androids. All the information in the documents is fetched by optical character recognition technology and obtained in text format.

Conversion Of Data Into Digital Form

Information obtained in text format is converted into machine-readable form to be processed digitally through AI and ML algorithms and robust mechanisms. 

Assessment and Evaluation

Information in digital format undergoes a series of automated checks. These checks offer a cross-match of information and verify the legitimacy. For example, information obtained from documents is cross-matched with user-provided information. Many organizations use databases available privately and publicly for cross-matching and verification of user-provided data. 

Validation and Verification Of User ID

After successful cross-matching, automated AI and Ml algorithms validate the legitimacy and verify the entity’s identity. It provides results on screen and makes both the client and the organization aware of the results. Clients using fake documents are filtered out and make organizations secure from fraud attacks. 

Which Documents are Automatically Rejected In the Verification Process?

The online document verification solution utilise automated AI and algorithms that are highly sharp and reject to process the following documents;

Tempered Documents 

Many criminals temper original documents with false information and try to use it for money laundering and other crimes. They attempt to bypass security measures with fabricated papers. ML and AI mechanisms detect the variations and make organizations aware of fraud attacks. Document checking processes help organizations identify tempered papers. 

Illegitimate Documents 

These are fake documents which are not issued by legal authorities. Automated algorithms detect the fakeness through holograms, stamps, and signatures. Many KYC documents have specific papers and writing which cannot be altered. Algorithms detect such variations and protect organizations from fraud attacks. 

Significance of Online Document Verification For Business

The online document verification process enables organizations to have several benefits such as;

ID Theft And Fraud Prevention

The online document verification process enables firms to verify entities and identify their legitimacy. This process enhances business security against ID theft and fraud attacks. It unveils criminals who use fake and fabricated documents to reach firms for illicit activities.  Additionally, it enables firms to verify the identities of clients, investors, and business partners globally and prevent ID fraud. 

Scalability and Growth 

Companies using online document verification processes have friction user onboarding and ID verification solutions. It eliminates lengthy manual processes and provides a digital automated solution. It enhances business scalability and growth. It allows organizations to deter the costs of multiple hirings and have a reliable robust solution. 

KYC, KYB, KYI and AML Compliance 

The digital method of document verification offers fraud prevention and risk assessment of clients’ profiles. It facilitates firms with legal companies such as KYC, KYB, and KYI. Additionally, it provides Anti-money laundering compliance and facilitates firms with security against fines and reputation damage. 

Final Words 

The online document verification process utilized the power of AI and ML technology. It facilitates firms with automated ID verification solutions for hassle-free business working. Additionally, it provides enhanced security and regulatory compliance. Moreover, a reliable document verification solution mitigates the risk of fraud attacks and enables firms to have multi-layered security. Organizations using online document verification solutions enhance business scalability with secure remote client onboarding and business processing. 

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