Technological advancement has benefited mankind and simplified many activities, but it has also attracted the attention of scammers. These scammers are increasing daily due to unchecked activities.
Companies face huge losses due to these cyber scams, and legal authorities are driving means to mitigate these cyber crimes. Between 2021 and 2022, more than 16,000 incidents were reported, 700 related to small companies. These crimes mainly affect the public administration sector, followed by the information sector. Document verification is the best solution against various scams, protecting companies and customers from cyber crimes.
What is a Document Verification Process?
The identity of the client’s documents is verified digitally; the whole process is done online. These solutions use advanced machine learning and artificial intelligence to perform verification.
Importance of Document Checks
- Identity documents minimize the risk of cyber crimes, and only verified clients are onboarded. Most crimes are committed using fake identities. Hackers pretend to be users; they steal the client’s essence and credentials and use them illicitly. Identity verification solutions allow only verified users to bypass the account, and only genuine customers can access the financial record.
- These solutions are reliable, as the whole task is performed by advanced technology, so there are no chances of error. Humans did traditional verifications, so they contain mistakes. The client’s credentials could have been safer because even an employee can expose the client’s data for money. Document Verification by biometrics enhances the company’s security, as it is error-free or preserves the customers’ credentials.
- Companies can comply with the latest Know Your Customer (KYC) regulations and avoid the penalties imposed by the government. Legal authorities have made it essential for businesses to follow the guidelines, as it protects companies from future loss. Companies can reduce their risk rate by completely knowing their clients. While doing partnerships in businesses, these solutions are proven advantageous, as the company can get complete information about their partner and better understand their strategies.
- Risk assessment is also done to save companies from future losses. Businesses continuously monitor their users and check their source of income; risk analysis is done to ensure that the client does not get involved in any fraudulent activity.
- Implementing robust customer identity verification software is integral in this process, enabling businesses to authenticate user identities, prevent potential fraudulent actions, and maintain a secure environment for both the company and its clientele.
Industries That are Implementing Identity Verification Document
The following industries are getting the advantages of the document verification process:
Gaming Industry
The gaming sector can allow verified players access to their accounts; in this way, they can reduce the gambling involved in the gaming sector. The government has also banned minors’ access to mature content videos, alcohol and other dangerous products for children; retailers have to install age checks on their websites so that only the targeted audience can reach their website.
Financial Sector
The financial sector includes banks, insurance companies and investment agencies; their security is fundamental. As these companies are always at the edge of fraud, loss in this sector affects the country’s economy; therefore, banks need to onboard verified clients.
Health Sector
Any slight delay can risk the patient’s life in the health sector. Therefore, an identity verification documents checks the client’s authenticity in seconds. This is beneficial for both the patients and doctors, as the complete medical history of the sufferer is uploaded. Proper medication can be given to them if all their data is known.
Travel Agency
Passengers can be onboarded by identity verification document; there is no need to stand in a long queue, and complete validation can be done online. Travellers can even book their flights and hotels from their homes.
Real Estate Business
Real estate requires very lengthy documentation. Their complete verification is done quickly with the help of these solutions. Fraud is widespread in real estate, and hackers present illegal or fake documents; this issue is resolved by verifying documents digitally.
Conclusion
Document verification processes have proven very beneficial for companies, as they have simplified the businesses’ day-to-day activities. This one-time investment saves the miscellaneous expenses of the companies, and the profit from this financing is definite. Companies can prevent themselves from facing heavy penalties and a damaged brand image. Customers prefer companies that keep their information secure, provide a user-friendly environment, and save time. All these activities are possible with the aid of document verification. This process is done through biometrics, which is very swift and validates the client in seconds. Companies that use it correctly increase their revenue because their client retention rate increases, and more customers are attracted to their businesses.