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‘Document frauds are the replication, counterfeiting, falsification, and forgery of official and original documents to bypass legal document checks.’
Document verification helps in proving the claim of the customer, whether it is correct or fraudulent. Fraudsters manipulate information on the original documents with the fake data and use it later on for their personal gain which can be applying for loans, immigration, insurances, ownership of property, attainment of medical benefits, and more. Fraud reports received by Federal Trade Commission in 2020 were recorded to be over 2.1 million in which imposter scams were the most in number, costing consumers over $3.3 billion. To lessen the chances of fake customer onboarding, all companies stress the display of the official documents for identity verification.
What Are The Types of Document Fraud?
It’s hard to picture that despite living in the global world there are still large ponds of losses that need to be filled in. Customers lost $56 billion last year to identity fraud. The digitization caused by the pandemic has made the customers believe that online solutions like digital bank accounts, portals, and websites are more valuable than carrying the documents in form of papers. Adapting by these, customers often forget that the fraud market is still at the same pace. Frequent types of document frauds are:
Pictorial Scams
A form of digital fraud, a pictorial scam is carried out when a picture is provided to e-verify data instead of the actual document. This fraud can be put into action by cut copy-pasting on the ID, photoshopping, white hack hacking, digital manipulation, or preparing a document so real and accurate that can not be identified by the company. Here, document attestation can play the role of a savior.
Forged Documents
The authenticity is manipulated when the documents are forged. This means that the data is altered or in some cases is completely displaced, for instance, adding watermarks, removing or replacing information, page counts, or alteration of signatures.
Camouflaged Identities
This kind of fraud is rare but if not detected can cause disruption. Fake identities are created by fraudsters to represent themselves as authorized personnel or someone they are not in the real world. The most common example, in this case, is of the twins or ones with identical features or names who take advantage of the other person. To prevent such tricky scams, document verification systems provide companies with real-time verification that uses AI in-depth technology to identify the customers.
Bogus Documents
Unauthorized duplication of documents is done to ascertain confidential details like bank account number, credit card details, social security number, address, or other data. The document verification process analyzes the details provided and is matched within the database to identify the customers.
How Do Companies Verify Documents?
With the online services available, the verifying of documents has become easier and more authentic because of the step-by-step procedure and fetching of results within seconds. The verification process has the following steps
1. Videos or photos of the documents in high quality are asked from the customer to upload from which OCR extracts data for analysis.
2. The AI algorithms scan and analyze the data, including watermarks, holograms, encrypted data, font, template, and pictures.
3. The authenticity of the information is checked by matching it within the database.
4. Analysis of documents is done by verifying signatures, to foresee the signs of forgery or fraudulence, if any.
5. The system finishes its analysis and presents the report ultimately leading to the successful onboarding of the customer.
6. The verified documents are then uploaded and retained in the respective company’s databases, which can be accessed anytime in the time ahead.
How To Prevent Document Frauds?
Authentic document checks have enabled the companies to stay ahead of the fraudsters and detect them before they slip the cracks. This can be done with a blend of advanced technologies and human expertise. Verification can have limitations but with an integrated solution which is cross-checking with other databases. Here, machine learning is the AI technology that detects frauds within seconds and that too authentically. Softwares provides in-depth analysis of the documents by verifying them in real-time. Companies should identify the customers before their onboarding.
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End Notes
Document frauds are going nowhere, they have stayed here from the start and still increasing because of the fraudsters getting sophisticated and quick-witted exposing companies to irreversible consequences. However, if businesses incorporate digitally advanced solutions which verify any identity within seconds can help the companies to progress and hinder the ways for fraudsters. Document verification services have made this so easy that all someone has to do is follow the procedure with some clicks or touches. For reading more technology-related blogs or submitting your blogs visit write for us technology.
