Using the identity of a person without their consent is known as identity fraud. It includes the false use of ID cards, passports, and driving licenses. According to a survey, identity theft fraud increase by 67% in the U.S. in 2021. Identity theft fraud includes financial loss, money laundering, corruption, and terrorism funding. A strong, reliable document verification method is require to stop this fraud. The process of digitally confirming someone’s identity online is known as online ID document verification. With the sudden rise of online businesses in the COVID-19 pandemic, online ID document verification has become very essential.
The Importance of ID Document Verification
Identity verification has become more important as a result of the massive losses suffered by businesses and taxpayers. The survey estimates that in 2021, cyber identity theft cases cost Americans $56 billion. Despite the risks involve, many organizations or businesses still consider real-time ID verification to be the better option for verification. With the increase in digitization, these traditional verification methods must move online because in-person ID verification is not standardize or scalable. As a result, businesses are willing to test methods for online verification. Digital document verification eliminates geographical restrictions, speeds up the process, and ensures accuracy.
Presence of ID Document Verification in Business
Verification of ID documents is essential for almost every business. It is important to be efficient when verifying ID documents online. Companies can safely and quickly onboard real consumers by employing simple image capturing and automat client verification technology. No company wants to hire a person who has been link to any type of crime. The following are some businesses in which an online document verification system is urgently require:
Banks are the most famous targets for fraudsters. They can open bank accounts and conduct online transactions using false identification documents. Later, these bank accounts could be involve in money laundering and terrorist financing. To stop these types of crimes, banks should implement more robust ID document verification methods.
Government and Public Administration
ID document verification is also necessary for the government and public administration sectors. Fraud in these organizations has the potential to endanger the privacy of an entire country. These sectors have the most important duties of issuance or renewal of
- Electronic certificates
- Oan account on a government website by providing one’s identity
- Identity documents
- Medical application documentation
The healthcare sector is heavily dependent on paper. Online verifying patient ID documents can speed up patient care. Automated ID document verification can decrease wait time, enhance patients’ experiences, and minimize the care staff’s workload.
Different Methods of ID Verification
There are several methods for the verification of documents. The following are some of them:
A technique that allows a person to be uniquely identify by assessing one or more distinctive biological traits is known as biometric verification. These biological markers include written signatures, voiceprints, earlobe and hand geometries, fingerprints, and retinal patterns.
This is a common method of digital document verification. However, the user must enter their username & password. Furthermore, it requests another verification step and includes something that only belongs to the user. Consequently, it becomes nearly impossible for hackers to steal users’ data.
One-Time Password (OTP) Validation
One establish method of ID verification is one-time password verification. An OTP is sent to the email address or mobile phone using this strategy to confirm the user’s identity before gaining access to the account. This OTP password is only utilize once, and after that usage, it expires.
Artificial Intelligence in ID Document Verification
The AI-powered ID document verification tools use a different set of documents to confirm the identity. Clients must upload a government-issue identity proof each time they access a company website. After uploading, the system will scan the documents using OCR and extract the information. The information is then analyze and compare to public and private databases. In the meantime, the ID document is check for signs of forgery. If the documents are genuine, the system will verify them; otherwise, it will reject them.
Technology has made fraudsters faster and more efficient. Fraudsters are using fake identities to commit horrific crimes like money laundering, stealing money, and terrorist funding. Fake identities include false ID cards, driving licenses, and passports. To prevent these frauds, it is necessary to merge technology with traditional verification methods. The Online ID document verification procedure is the perfect example of verifying someone’s identity digitally. It is use in almost every sector to minimize fraudulent activities. This novel verification technique is fast, reliable, and accurate, which provides a better customer experience.