Identity Thefts Can be Lowered with AI-powered Document Verification

When criminals hack into company databases, or trick users on social media to provide sensitive information, identity theft can occur. According to the FTC, identity theft cases reported in 2019 reached 65,100. 


Government authorities and business organizations are making all efforts to try and minimize this threat. One tried and tested method of controlling this threat is through document verification. To provide more convenience, transparency, and security, AI-powered document verification processes are being utilized.  

The Need for Document Verification

The document validation process is currently the best strategy for the detection of identity thieves. Suppose you visit a bank branch to apply for a loan or open a new account. You will be required to provide official ID documents such as an ID card or passport for document attestation. This process is crucial as it verifies the true identity of individuals using official details. In case a criminal provides fake documents to commit a crime, the document verification process can quickly identify it. Other frauds that can be detected through document verification include false chargebacks, insurance claims, medical care, as well as major crimes such as money laundering. 

What Happens During Documentation Verification?

The identity document verification process is generally done by financial institutions online. For online document check, the following steps take place: 

  1. Capture: The end-user is asked to take a picture of or upload an image of their official ID document

  2. Extract: AI-powered document verification process extracts the data through an automated process using OCR (Optical Character Recognition) technology

  3. Screening: The document details are verified and cross-matched with the information provided by the end-user


A bonus point of verifying IDs online is that fake documents and suspicious customers are detected. In particular, three types of fraudulent documents are identified. These include:


  • Unauthorized Documents:

These are fake documents that have not been issued by any government body and are in fact made up by the fraudster to fool the security system. This can include a document with a missing hologram, rainbow print, government stamp, etc. 

  • False Documents

These documents are stolen documents of legitimate consumers. By adding fake details to legitimate customer data, fraudsters use such documents to commit synthetic identity fraud. As a result, firms find it difficult to distinguish between real and fake information, unless they use AI algorithms to detect discrepancies. 

  • Modified Documents

These documents have some modified information in them for instance, an incorrect expiry date, wrong address, inaccurate father’s name, and so on. 

Document Checks - Helping Firms Spot Imposters

To tackle the growing issue of online crimes, identity thefts, and account takeovers, global regulatory authorities have advised registered businesses to comply with KYC and AML regulations. These regulations include guidelines of what businesses must do to keep imposters and fraudsters at bay. Through automated KYC processes, the risk of financial crime can be substantially minimized. Verifying the corruption-related documents through automated document verification not only lowers down the cost but increases profits by increasing customer retention rates. 

Enabling Businesses to Become More Profitable

After a one-time investment in document verification technology, provided by identity verification service providers, numerous businesses are able to adopt a customer-centric and cost-effective approach. Real-world examples of document verification include:


  • Verifying an ID card at a library

  • Verifying bank statements, rent agreements, registration forms, and credit cards in banks

  • Authenticating student identities online through school-issued ID cards

  • Automated verification of visa and passport by the travel industry

  • Verification of credit/debit cards by e-commerce stores

  • Identification of freelance workers prior to making payments

  • Patient identity verification prior to administering drugs, treatments, and surgeries

Nearly every financial institution and healthcare firm have invested in document verification solution with the primary goal being fraud prevention and risk mitigation. From making online transactions secure to providing convenience to customers through automation, the benefits of this technology are endless. Lastly, with the world going remote, document verification must be utilized for safeguarding online platforms and databases. A failure to do so can result in disastrous consequences for both customers and businesses themselves.


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  1. 27 Aug 2019
    Tomas Mandy

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    1. 27 Aug 2019
      Britney Millner

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  2. 27 Aug 2019
    Simon Downey

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