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Whitepaper

Guide for Choosing the Best Online Document Verification Solution

Introduction

Your business has to verify a lot of customer identity using online documents, you choose a solution, integrate it with your systems, and now it’s time to go live and see how the solution performs. After deploying the solution, you can see that your customer onboarding number has taken a dip. Let’s say most of your customers are providing authentic documents for online identity verification, if they still can’t get through the verification process, then it’s time for you as a business to look into the problem. 

You start going through thousands of customer’s data and conclude that a huge number of documents are not supported by the document verification solution vendor. The reason could be that the document was recently issued by the government, or the document belongs to a country that the vendor can’t verify, or something else altogether. 

All you can do is confirm with your vendor, how long it will take till certain documents are supported? The waiting period can result in your bleeding business every day.

Foundation of Online ID Verification

Document authentication on Government-issued ID documents is the foundation of online identity verification. Customer IDs are verified using two key methods. The first one is using automation technology, machine learning solutions, AI-based technology, or optical character recognition. The second step is to verify documents using an army of expert document verification teams. The manual method of document verification is usually more time-consuming and prone to error. 

Understanding Document Forensics

  1. Cross-checking physical documents with online documents.
  2. Checking for minuscule changes in details, printing style, and other mismatched details.
  3. Verifying the information provided on documents with government databases.

Questions To Ask the Online Document Verification Vendor Before Choosing Services

As a business all set to invest in an online document verification solution, you should make sure to ask crucial questions. Here are the questions that are must ask:

  1. How many documents does the document verification solution support? How does the vendor measure the number of documents that have been issued by governments around the world? If a document has been issued twice by the government without any key changes, then does the vendor count that as two different documents or just one? How many countries does the solution support?
  2. The second question that you need to ask is how effective the solution is in verifying online ID documents? Can it detect all kinds of document tempering like physical, digital document forging, etc.?
  3. The last biggest question you should ask is how fast the solution verifies different types of documents. If a solution takes more than 5 minutes for each document then it would not be an effective solution for businesses with a lot of customer onboarding every day.

While these questions are highly important, there is one important question that businesses should ask their vendors:

  • What is the rate at which documents are verified or what is the document verification velocity?

This question you need to ask is because a lot of documents go out of circulation every year and newer documents are issued in return. It is important to know if new documents can be verified using the solution or not.

Right Kind of Document Verification Solution Can Make or Break Your Business

New document types are being issued by governments all over the globe, which makes the older document types obsolete. Any online document verification solution that can verify new and old documents in real-time is crucial for businesses to reduce costs and improve the overall customer experience.

What Makes an Online Document Verification Solution Great?

In the end, it all comes down to how the solutions are built, poorly built systems can easily be fooled by sophisticated fraudsters who employ better technological solutions. Online ID verification technologies that rely on only one type of verification can be tricked once the weak point is determined. As a business, it can lead to poor customer experience, and to make things worse, weak document verification solutions can cause your businesses to be susceptible to all kinds of fraud. Common examples of these frauds are money laundering, stealing, and embezzlement.

Ideal solutions are all about providing security and efficiency while cheap solutions are all about capturing customer data. Therefore, the perfect solution must keep adapting to new document types and change according to industry trends. Algorithms must be sophisticated enough not to fall prey to tactics used by fraudsters, they should also be able to learn by themselves or they should have comprehensive solutions that don’t require machine learning. 

If it’s possible, vendors should send unsupported documents for manual verification, while manual verification of documents is not ideal, it can still provide the solution needed by businesses. An online document verification solution should offer security out of all things. As businesses will need to verify a wide range of documents and confidential customer information, the solutions need to be secure and should not capture any information privately. 

Conclusion

As a business looking for an online identity verification solution or an online document verification solution, you need to ask a couple of questions. How many documents can the solution verify and what is onboarding velocity? How much time does it take to verify documents and how effective the solution is in figuring out the difference between authentic and fake documents? 

If you have been relying on manual methods for verification of documents, then you should ask the providers these questions and how well they work? Efficient document verification technologies can improve business operations and streamline the customer onboarding process.

About DIRO

DIRO provides a comprehensive online document verification solution. Our document verification technology verifies documents instantly, the technology can verify all kinds of online documents from all over the globe. DIRO’s proprietary solution blends technology and human touch to build a proper document verification solution. Our solution is effective in nullifying onboarding velocity. 

Businesses can use DIRO’s document verification solutions for fulfilling the KYC and AML compliance, improving customer experience, and streamlining the remote customer onboarding process. Verified and authentic documents are provided with proof of authentication. Authentic documents are also placed on the blockchain which makes them immutable.

  • DIRO’s HQ: (New York, USA)
  • Website: https://diro.io/
  • Email ID: (john.paul@diro.io)
Categories
Document Verification

Is Online Document Verification for Digital Services More Important Than Ever?

The process of digitization is growing widely. Even the global smartphone users have reached up to 2.9 billion, and the number is rapidly growing. More and more customers are demanding faster digital services like online banking.

Nearly 40% of all customers are more likely to obtain a particular digital service from businesses they are associated with. Regardless of the industry type, most businesses are trying to provide digital solutions for a better customer experience. The new customer needs and digital services demand businesses to have strong KYC solutions in place to reduce fraud. This is more than just a demand for companies operating in the financial industry. One way to achieve it is by leveraging technologies like online document verification, AI, machine learning, or RPA.

Document verification is an integral tool in the verification of a customer’s identity. Online document verification is needed whether it is for complying with KYC regulations, or it is for account opening. 

In the old days, documents were verified using manual methods, which involved manual cross-checking of document data with other sources. Digital document verification reduces that hassle by verifying customer documents instantly.

Basics of ID Verification

In order to verify customer ID during account opening, a variety of documents are to be verified. There are a number of steps to be followed involved in ID verification.

Here are all the basics of ID verification that you need to know.

  1. Document Verification Stage 1

In this stage of document verification, the account opener is a regulated entity. These include banks, NBFCs, Insurers, security firms, etc. The user then submits documents to the account opener entity. These credentials are then confirmed to reduce the risk of fraud as much as possible. Once the information is verified, the customer is granted access to a certain service or account.

  1. Document Verification Stage 2

The first step is completed when documents are verified, and customers are granted access to services. The first stage of document verification is simple, but the second stage is tough. Most document verification processes leave their customer data vulnerable to stealing of information. Online document verification is the most common method of conducting identity fraud by fraudsters.

How Big of a Threat is Identity Theft?

Identity fraud happens when a person gains access to crucial identity information about a particular person. That information is then used by fraudsters to verify themselves as someone else and commit several frauds. 

The main goal of fraudsters is to use someone else’s identity as theirs and once the verification processes clear them as the person they claim to be, the fraud begins. By assuming someone else’s identity, they can take loans, apply for a credit card or open new accounts and do so much more. But how do fraudsters and criminals get access to confidential information? This information should only be accessible by one person by logic right? So how do fraudsters gain access to them? The answer is simple, large-scale data breaches.

In previous years, there have been a number of large-scale data breaches. A number of big businesses with huge customer records, like T-Mobile, Pfizer, Warner Music Group, Twitter, Zoom, GoDaddy, and others have experienced data breaches in 2020.

To put these data breaches into context, the volume of records exposed online increased by 141%. With more and more companies taking part in the digitization wave due to the Covid-19 pandemic, more customer information online is available. To make matters worse, digital literacy is low and not a lot of people don’t understand how to secure their information. 

The threat of identity fraud is a major concern for the financial industry. Fraud losses are up by 13% in 2020 over $16 billion has been lost to Identity theft in just the last year. In other parts of the world, online fraud consists mostly of cases of identity theft. 

Financial institutions must take preventive measures to protect every step of the information collection process. To fight ID fraud, organizations need to learn more about it and be prepared for it by leveraging strong online document verification technology.

Types of Fraudulent IDs

The rise of technology has led to different methods of generating fake IDs. Fake IDs come in all types of shapes and sizes. The most common types of fraud ID documents are:

  1. Forged IDs

There are IDs on which some information has been changed illegally, to modify the ID document to match the person who’s holding the ID. This could involve:

  • Changing the variable information
  • Inserting real pages from other IDs
  • Removing pages or information
  • Applying false stamps or watermarks
  • Using technology to alter information on an image of an original ID.
  1. Counterfeit IDs

Counterfeit IDs are total reproductions of an entire ID, in which the fraudsters will use a template of an ID document and add fake information to commit fraud. 

  1. Stolen Bank IDs

These are non-personalized bank IDs that fraudsters steal from the supply chain. Fraudsters then add their information to the ID to commit fraud.

  1. Illegally Obtained Real IDs

These IDs are obtained after supplying authorities with fake information. This information could be photos of someone else, fake personal details, or fake verifying documents.

  1. Compromised or Sample IDs

These are legally valid IDs that are available online either as sample IDs or doctored IDs. These IDs are usually obtained by hackers. The most common types of these compromised IDs have been created using information illegally obtained using data breaches or using sellers on the dark web.

Real-Time Document Verification: How it Works?

Real-time document verification uses a number of techniques to authenticate documents for accuracy and user-friendliness. With online document verification, banks and financial institutions can fix their weak points. Banks need to search for the best technological solutions like DIRO’s online document verification. 

DIRO’s online document verification technology captures document data from the original web source. The verification solution offers instant document verification for less friction and a better customer experience during onboarding.