Online Document Checkers

Humans can identify faces through unique features such as the mouth, eyes, and nose. However, facial recognition technology functions on an algorithmic scale. Despite a general understanding of how this technology works, the verification process may not be fully comprehended by some.

As technology experts, human rights advocates, and politicians continue to assess the potential implications of facial recognition. According to market forecasts, global spending on identity verification solutions is expected to grow substantially over the next decade. The market is predicted to expand from $4.93 billion in 2017 to over USD 18 billion by 2027, representing an increase of more than USD 13 billion over the ten-year period.

Diving Deeper into Document Verification

To pursue digital and online identities, businesses may have overlooked the value of traditional identity verification methods, such as picture IDs and passports. However, there are significant advantages to utilising authentic, official documents in the identity verification process.

Service providers have begun prioritising document verification as a critical component of authentication and identity verification to capitalise on both the benefits of physical document verification and digital platforms.

Validation Checks in Document Verification 

  • Facial Detection: Having photographic identification documents is crucial for carrying out identity verification. Commonly, identity verification systems extract image data from the ID and cross-reference it with internal photos to verify identity.
  • Data Correlation: Official identification documents often contain information on both the front and back sides. To ensure that the ID is genuine and belongs to the intended user, an identity solution must correlate the data from both sides of the ID.
  • Document Scanning and Fraud Detection: Accurately documenting an ID mandates the use of mechanisms that scan the document for crucial information such as ID numbers. Then this information is linked with corresponding data in a database. Further, these scanning systems are equipped with pattern recognition technology. It allows them to identify fraudulent documents through the detection of watermarks or other distinctive patterns.
  • Database Checks: Verification of scanned documents against a national database is dependent on the provider. When scanning a national ID, verification is done through official databases. Verification solutions typically have access to multiple national databases, or secure versions of them, to authenticate documents. As a result, verification solutions often tout the number of document types they can verify, which provides broader coverage for international users. The ability to authenticate a wider range of documents makes the verification process more comprehensive.
  • Selfie Liveness and ID Checks: In advanced biometric and verification systems, user identities are often verified through image checks using selfies taken from mobile devices. This approach allows for immediate comparison of images between IDs and biometric data. It also allows liveness testing to verify that the correct user is present and prevent spoofing attempts.

How Does Document Verification Contribute to Compliance?

Although compliance standards in regulated industries generally don’t mandate digital document verification. But, physical verification between individuals at the point of service is often required. Although, with the growing use of digital platforms, there is a greater demand for online onboarding. It also requires verification to streamline digital customer service, leading to increased interest in digital document verification.

The banking and financial sector is an exceptional example of an industry where online customer service and regulatory compliance can conflict. Following the 9/11 attacks and the Department of Homeland Security creation, several crucial regulations were put in place or strengthened to prevent money laundering for terrorist activities.

Two significant regulations that were established during this period are the Know Your Customer (KYC) and Anti-Money Laundering (AML) laws.

Know Your Customer

The KYC regulations mandates that financial institutions implement stringent customer verification procedures. Additionally, it encompasses regulatory-compliant processes such as identity and document verification, as well as background checks and other screening measures.

Anti-Money Laundering Laws

AML is a wider set of rules and regulations that are meant to combat money laundering and sometimes require KYC checks. Moreover, other regulations require ID or document verification along with other credentials. It’s essential to notice that while document verification plays a crucial role in identity verification standards, it should not be conflated with identity verification itself.

Key Takeaways

In conclusion, document verification has become an essential component of authentication and identity verification. It involves using technology to capture official forms of identification into digital systems for validation. Also, the process involves various validation checks to ensure the authenticity of ID documents. Document verification plays a crucial role in compliance with regulations such as KYC and AML laws in the financial sector.

As digital platforms continue to gain popularity, the demand for online onboarding and verification has increased. This makes document verification an essential tool for organisations to guard against defrauding activities.