Document Authentication: Making Remote Customer Verification Possible
About all the business from online websites to brick and mortar companies have to verify their customers. Banks and other financial services providers are obliged for customer identity verification due to regulatory compliance.
Law enforcement agencies have directed all financial institutions to conduct strict customer verification during onboarding. The reason is these institutions possess a high risk of frauds and scams. Due to the involvement of money in their operations, they are the foremost target for fraudsters and criminals.
The question arises, how will the identity be verified. Should a business authenticate its customers by asking some questions over a phone call or having a meeting with them? But the first one is not much secure and the next is not feasible. A scammer can verify himself as a legitimate customer by answering questions on the call. Fortunately, online document authentication can comply with all business requirements.
The procedure of verifying the identity of a person by validating the data on his id document is known as document authentication. To perform this verification through AI-powered software using internet services is called online document authentication.
For verification, id documents are required.
What is an Identity Document?
A piece of paper or a certificate that can prove the personal details of a person is known as an identity document. It is issued by some government authority when a citizen reaches a specific age.
Identity document must have the following details:
- National identification number or regional identification number
- Full name (First and Last), father name
- Address information
- Date of Birth
- Citizenship (Home Country)
- Photo ID
- Issue and expiry date
Below are the documents that are considered IDs
It is usually in the shape of a small and regular card. It is given to a citizen when he reaches a specific age (18 or 16). The age limit for issuing ID cards varies with countries or states. People below that age are given birth certificates. Within the territory of a country, an individual is identified by his id documents. Be it an educational institute or a hospital, all the businesses will demand ID proof before giving any services.
It is a travel document published at the request of a person for international travel. A foreigner is identified by his passport. It is an alternative to the ID card in abroad states. Frequently, it is in the shape of a booklet. A permission stamp of a foreign country’s embassy is pasted on a page.
A driving license is a legal approval to drive specified vehicles within a country, in a card shape. It is issued after analyzing and examining driving abilities.
Now governments are printing MRZ code and integrating NFC chips on id documents. MRZ is machine-readable code having numbers and letters. A scanner can read and decode the information within the MRZ accelerating the data extraction process. Near-field communication chips are the electronic strips having details of the document. Information from NFC chips can be captured in a close range with an NFC scanner. NFC technology is more secure and convenient than the MRZ as the data is encrypted. The information inside NFC chips can’t be stolen or copied.
Process of Document Authentication
Businesses can authenticate customer documents remotely without a physical meetup. The customer also does not have to visit some office for this. The customer will be pleased as he can verify his documents through a mobile or laptop having camera features.
Here is the process of Identity document verification.
The image of any above id document is captured and uploaded to the software. The image doesn’t need to be clicked in real-time, a previously taken one can also be used. The customer also needs to click a live selfie for photo-id verification.
The required details are extracted from the image using character recognition technology i.e. OCR. It can extract data of all kinds of languages including multilingual documents.
In this process, the document's authenticity is tested and confirmed. The customer selfie and photo id are matched. If all the details match, the document is marked as verified.
Businesses can secure their channels from all types of frauds and scams using document authentication services. It will help in making business platforms more secure and trustworthy. It also saves time and funds allocated on manual verification processes.