Secure Businesses with AI-Based Document Verification Solutions

Producing fraudulent documents is a serious offense, but the situation becomes even worse when these records are traded on the dark web, amplifying the harm caused. Surprisingly, physical counterfeit documents command higher prices than their scanned counterparts in illegal markets. In June 2022, an authentic Maltese passport was sold for $6500, while passports from other countries averaged around $3800. Even scanned versions, such as a Minnesota driver’s license, can fetch a price of $150.

Confronted with this disturbing reality, document verification services emerge as a ray of hope, offering strong protection against identity fraud and theft. However, their benefits extend far beyond that. Before delving into the various advantages these services bring to organizations, let’s first grasp the concept of document fraud.

What is Document Forgery? 

The act of altering, creating, or utilizing genuine or false documents in order to deceive or evade security systems is commonly known as “document fraud” or “document forgery.” The severity of penalties for document fraud varies depending on factors such as the intent behind the forgery and the types of documents involved. Falsifying official documents like driver’s licenses, passports, and ID cards to sell them is considered a significant offense in many jurisdictions that have stringent laws against forgery.

Different Kinds of Document Fraud 

Interpol classifies fraud into the following categories, including: 

1. Forged Documents: Document forgery refers to the deliberate act of altering an official document with the intention to add, delete, or modify details in order to make it appear authentic. Instances of forged documents include data alteration, substituting photos or pages, and tampering with exit/entry stamps or visas.
2. Pseudo Documents: The practice of duplicating documents from legitimate sources that are not recognized by international organizations or countries.
3. Counterfeit Documents: Illegally duplicating a genuine document without authorization from the authentic authority.

There are two major types of document fraud involving genuine documents: 

1. Imposter Misuse of Genuine Documents: This fraud occurs when someone uses authentic documents, such as a passport or ID card, for scamming purposes by imitating another individual.
2. Fraudulently Acquire Genuine Documents: There are official documents that are obtained through illegal means such as bribery, corruption, and theft.

The Increasing Demand For Document Authentication 

The incidence of data theft cases is on the rise, resulting in significant fines for businesses. By June 2022, there were nearly 2.4 million reported cases, encompassing identity theft and various forms of fraud. Consequently, document verification has become an invaluable tool for organizations to authenticate the credibility of their client’s claims. It verifies clients during the onboarding process and offers numerous advantages to companies in various ways.

How to Verify Documents? 

Document verification integrates the investigation of distinctive features such as fonts, holograms, and watermarks to determine the authenticity of document management software. It’s advised that businesses develop a reliable document verification method as a primary defense against fraudulent activity, primarily as preventing these issues outright will be less time and resource-consuming than reacting to incidents via the legal process or the issuing of a formal demand letter.

Here is how the document verification services get the job done: 

1. Data Capture and Document Collection 

Users are encouraged to upload pictures of their identity documents which are then subjected to thorough scanning by algorithms. This scanning procedure concerns scrutinizing the document, including accurately recognizing its encrypted data and verifying its authenticity. Documents undergo pre-processing procedures in order to prepare them for the subsequent step. This process includes: 

• Rectifying any skew in the image
• Increase the color and brightness
• Investigate the borders 

These adjustments are enforced to optimize the data extraction from the documents. 

2. Data Extraction 

Relevant information is extracted from the documents by filtering out any irrelevant data. This process is accomplished using Optical Character Recognition (OCR) technology, where an intelligent engine identifies and retrieves the necessary information.

3. Document Verification 

After retrieving the data, it is then compared against the database to confirm its authenticity. The validation process involves performing various checks, such as:

• Edge detection as well as cropping
• Cross-matching with other global IDs
• Color space examination
• Headshot integrity
• Front-to-back correlation
• Face and orientation recognition
• Comparing the selfie to the photo on the ID card

4. Results Generated 

Once the documents have been verified, the results are presented to the end user and stored in the back office for future reference.

Benefits of Automated Document Verification Services 

With the rise in fraud incidents, businesses actively seek solutions to combat these malicious activities while establishing a strong presence in the competitive market. As a result, AI-based document verification has become their preferred choice. It also offers benefits such as faster return on investment (ROI), swift client onboarding, fraud prevention, avoidance of non-compliance fines, and cultivating a positive brand image.

Improved Efficiency and Productivity

Implementing an AI-powered document verification solution improves corporate efficiency and productivity dramatically. Organizations may save numerous hours spent on human document examination by automating the verification process. Advanced OCR technology paired with machine learning algorithms allows for the rapid extraction of information from a variety of document types such as ID cards, passports, driver’s licenses, and utility bills. This removes the need for human data entry and speeds up the verification process, allowing organizations to handle more papers in less time.

Enhanced Accuracy and Fraud Detection

Traditional document verification procedures are susceptible to human error and might miss tiny indications of fraud or manipulation. Artificial intelligence-powered solutions use complex algorithms to detect even the most complex fraud attempts. To assess authenticity, these systems may analyze and compare different data points within a document, such as watermarks, holograms, micro print, and digital signatures. Furthermore, machine learning algorithms can learn and react to new fraud trends on a continuous basis, ensuring that organizations stay one step ahead of possible risks.

Strengthened Compliance and Risk Management

Regulatory compliance is critical for organizations in a variety of industries. Organizations may expedite compliance procedures by automatically certifying identification papers against industry-specific standards and laws with AI-powered document verification systems. Businesses may reduce the risk of financial fines, brand harm, and legal implications by guaranteeing proper identification verification. Furthermore, these systems give an auditable record of verification actions, which enables organizations to verify compliance with regulatory bodies and auditors.

Enhanced Customer Experience and Trust

Implementing an AI-powered document verification solution enhances the entire client experience dramatically. Customers no longer need to produce physical copies of their papers or face lengthy manual verification processes. AI-powered verification’s digital nature allows seamless and convenient user experiences, decreasing friction and increasing customer happiness. Furthermore, by improving the security and accuracy of identity verification, organizations may boost consumer trust and credibility, leading to greater customer loyalty and brand reputation.

The Bottomline 

Document verification services are a vital defense against document fraud and identity theft. By leveraging advanced technologies like OCR and cross-matching with databases, these solutions ensure document authenticity and provide end users with accurate results. Embracing AI-based document verification can empower businesses to protect themselves, their clients, and their reputation from the increasing fraud risks in today’s digital landscape.