Whether you own an online grocery shop or an apparel selling store, you need to make sure that your clients are actually who they claim to be. Assessing this not only helps filter out fraudsters but also allows the e-commerce store to stay compliant with international “Know Your Customer” (KYC) standards.
However, staying compliant is not an easy task, as it requires both time and resources. This is where document verification steps in. The document validation process provides an online store the opportunity to secure their business operations, from the order processing stage to product delivery.
The Value of Identity Document Verification
Online fraud occurs when an imposter steals the identity of another person, or completely fakes a new identity, to gain monetary advantages. Identity fraud is increasingly gaining prominence and is a crime punishable by law. To avoid the occurrence of online frauds such as data breaches, phishing attempts, CNP (Card-Not-Present) fraud, etc., global regulatory authorities have devised a set of obligations. Compliance with these regulations is mandatory for not just the financial sector, but the e-commerce sector as well.
KYC compliance requires documentation verification. This means that prior to forming a business relationship, the customer has to provide some ID documents as proof of identity. Document verification through the KYC process provides companies the opportunity to implement customer due diligence. The document check process is completed once the ID documents are verified against the information provided by the customer. This way, identity thefts, phishing scams, and other online frauds can be successfully eliminated.
Conventional Methods Are Being Replaced
Previously, when digitization had not taken over, the document checking process had to be performed manually. During this process, customers were required to visit shop or bank branches in person to have their ID-verified. This method, however, is deemed insufficient now due to numerous reasons. Firstly, it was convenient as customers had to wait in line queues. Secondly, it required a lot of storage space for the ID files to be stored.
Thirdly, manual labor was required in huge amounts, as hundreds of transactions are performed through banks on a daily basis. Lastly, as the world has now shifted online, it left a gap in the market that could only be fulfilled with enhanced technologies. As the document verification process is fully automated, it poses as the perfect solution.
The Online Document Verification Process
A document verification software powered by artificial intelligence models is integrated into the system of the seller. When a customer signs in to a platform online or opens a new account, it requires the customer to prove their identity. At this point, the customer uploads or takes an image of themselves holding their ID document. The document verification software analyzes the ID document, automatically extracts the information from it, and matches the image against the selfie of the customer.
If the verification process is successful, legitimate customers are onboarded within seconds, saving the company from the damage that might have been caused by the illicit activities of fraudsters.
It is important to note that during this process, only official ID documents are accepted. This includes a government-issued ID card, driver’s license, utility bill, passport, rent agreement, tax bill, credit or debit card, and so on. Additionally, the AI-based software also detects any sign of forgery, fake, false, or manipulated documents.
Is Documentation Verification Effective?
The identity document verification solution uses artificial intelligence algorithms to differentiate between authentic and modified documents. With the emergence of this automated process, manual verification procedures are no longer required. This has proven to be particularly beneficial in terms of e-commerce stores, as they can now verify their user base remotely. This saves the company’s time and resources altogether. Automated ID record confirmation arrangements can validate unfamiliar reports from around the world.
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Major e-commerce stores worldwide have integrated this technology to prevent the occurrence of financial crimes. Document verification assists them in not only verifying the clients but also meeting regulatory requirements. All of these help build a better rapport with the customer and a stronger brand image in the market.