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Online businesses have to deal with identity theft cases even in the modern world. According to a report from Insurance Information Institute, there were around 15 million victims of identity theft crimes, which resulted in a monetary loss of concerned entities. During COVID-19, all businesses shifted to digital platforms, which increased the number of suspicious exchanges and data privacy breaches. In this light, online document verification services have become popular for fraud prevention in the corporate world. Cutting-edge solution verifies customer identities only through government-issued records. Using AI-driven KYC documents checks produces not only high-quality results but also strengthens relationships with customers. The following sections shed light on record validation for effective fraud prevention:

Utilizing KYC Documents Checks

During an account opening or executing a monetary transaction, the new client must submit government-issued records such as driver’s license and ID cards. The professional verifies the details on documentation and cross-checks the images inside previously submitted records to prevent fraud and discourage bad actors from future attempts. 

Nowadays, AI-driven KYC documents checks can replace verification professionals. This empowers businesses to monitor transactions remotely through in-depth verification and highlight abnormal activities in real time. 

Cybercriminals use modern technologies to accomplish their malicious goals. Perpetrators can use forged documents and steal the identity of the victim. The following are five types of document fraud cases that criminals can use to bypass security protocols:

Illegitimate Documents

Illegitimate records are completely forged documentation. Such documentation does not have holograms and rainbow prints which are always present in originals. Using KYC documents checks, corporations can fight this fraud effectively. 

False Records

False documents do not have forgeries, but perpetrators actually steal records to fool the KYC documents checks.

Modified Documentation

Such types of records are original documents that fraudsters use to bypass security protocols. Criminals modify user credentials in such a way that even trained eyes cannot spot manipulations. In this light, AI-driven KYC documents checks solutions can highlight forged documents by identifying tampering in font styles and pixels.

Imposter Records 

This kind of documentation is original, but it is presented by a fake entity and not the genuine owner of records. 

Fraudulently Collected Documents 

In this type of manipulation, fraudsters deceive through applications in various ways by using fake images in records or utilising mixed credentials. The purpose is to fool authorities and bypass security protocols. 

Top 4 Advantages of AI-Driven KYC Documents Checks

To authenticate user records, AI-driven record verification services contribute to the fight against ID fraud and ensure compliance with international regulations. This is important to strengthen relationships with the clientele base. The following are notable benefits of KYC documents checks:

Increasing Speed & Ensure a Positive Customer Experience

According to a PWC study, speed and convenience are key factors that enhance customer experience. Traditional approaches are slow and cumbersome, which does more harm than good. 

Working with a verified vendor can provide KYC documents checks that can validate user credentials instantly by screening passports or driver’s licenses. In this light, the user must upload an image of government-issued records through their smart devices. 

Reducing Risk & Attracting Genuine Customers

Implementation of record verification solutions ensures real-time ID validation of customers, which is important to discourage bad actors. As per a global fraud report, outdated security measures are a massive reason behind the abandonment of online transactions. KYC documents checks mitigate business risks, increase confidence, and facilitate sticking with AML & KYC regulations, reducing errors and ensuring a positive user experience.  

Maintaining Market Reputation

Market credibility plays an important role in developing businesses of all sizes. Customers want to shift to other companies if they become aware of any mishap from the concerned corporation. Actually, this breaks trust, and clients want to switch their service providers immediately. In the age of digitization, users want unbeatable data security. Document management software checks can solve the issue for modern-day corporations. 

Avoiding Hefty Fines

Companies have to face huge monetary fines if they breach AML & KYC regulations. Businesses had to pay around $10.6 billion in 2020 as compensation. Utilising KYC documents checks can help the corporate world to evade such heavy fines and avoid bankruptcy. 

Final Thoughts

KYC documents checks can easily distinguish between fake and genuine records, which protect businesses from external attacks. This extracts desired data in given records to guarantee user documentation, allowing only genuine clients to access certain resources. 

Using AI-driven document verification solutions, businesses can prevent ID theft and ensure a positive customer experience. Hence, corporations can guarantee compliance with international regulatory obligations.