Innovative technology helps businesses in the digital world speed up their process, but preventing identity theft remains a difficulty. A fraud report from 2023 states that there has been an overall 18% boost in fraudulent activities globally since 2021, with more than 51% of issues of ID theft. An AI-driven document verification solution can assist contemporary businesses in preventing fraud and ensuring KYC & AML compliance. Firms can enhance their connections with customers and raise their yearly profit margins in this way.
The significance of document verification and the ways in which state-of-the-art technology can support proactive fraud prevention are covered in detail in this article.
Document Verification Solution – A Brief Overview
A record authentication technique involves checking government-issued documents including passports, ID cards, and rental agreements to confirm the customer’s identity. To provide error-free identification confirmation, the software compares original paperwork with real photographs. Businesses may then readily spot rogue actors and deter them from abusing established procedures.
According to Markets & Markets research, the global identity verification market size will grow at a CAGR of around 14% from 2022 to 2027, reaching a value of about 18.6 billion dollars. Initiatives for rapid digitisation are the primary market drivers, claims the research.
Development in the BFSI Industry
The BFSI industry oversees the management of extremely private and sensitive data including user bank information, passwords, and ID credentials. In order to effectively combat fraud, the banking, financial services, and insurance industries are motivated to provide strong IDV services. In other words, the cutting-edge strategy deters cyberattacks and earns the confidence of clients. Blockchain, artificial intelligence, IIoT, ML, optical character recognition, liveness detection, and better security/surveillance are emerging technologies in the current day.
Over the forecast period, North America will retain the largest market share by region (2022 to 2027). Because of the help provided by AI & ML technology, businesses in the jurisdiction are implementing the newest IDV services quickly. Also, the region’s identity verification industry is expanding as a result of an increase in ID data breaches and improved security situations.
Development With Respect to Deployment
The cloud sector will encounter a significant boost with respect to deployment mode (i.e., more CAGR). It is because SaaS & IaaS models are widely used and have cheap cost cloud services. Users have profited from cloud services as a way to assess compliance and regulatory risks throughout the COVID-19 era. Cloud technology was employed by businesses that adopted remote working to stop identity theft. Without a doubt, its growth will aid the development of identity verification vendors.
Internet usage and e-commerce will increase over time, making IDV technologies more frequently used in contemporary businesses.
Top Document Fraud Strategies Used By Scammers
New technology makes it easier to detect and get rid of fraud.
The following topics go over different sorts of document fraud that get through security measures:
Illegal records lack distinctive features like holograms and rainbow prints, making them wholly false paperwork. The public has easy access to samples of records issued by the government. Detailed information on websites, TV shows, or presentations, for instance. Also, any documents that are reported as stolen to the police fall under this category.
Fake documents are not created by manipulation or forging; rather, thieves take the records to further their evil intentions.
Fraudsters in this category employ a variety of deceptive strategies, such as fabricating documents or photographs. In this approach, criminals attempt to deceive law enforcement and accomplish their evil goals.
These are authentic records that crooks alter to get over security measures. Such documents can deceive officers using typical screening methods used by a firm. The only way for businesses to prevent updated record scams is through the implementation of AI-driven document verification solutions.
Genuine records are typically empty. Such documentation can be stolen from supply chains by criminals, who can then falsify them by inserting false information.
Employing AI-Powered Document Verification Solution to Fight Scams
Staff members request official documents such as passports and ID cards while setting up internet accounts and carrying out financial transactions. To stop malicious actors from abusing established systems, a verification officer previously requested information on records and cross-matched data.
Customers can now remotely benefit from AI & ML technologies, which have replaced human processes. In this method, companies can carry out transactions immediately while using online document verification tools to confirm clients’ identities. Criminals are getting smarter about how they carry out their harmful plans and reap quick rewards.
The utilization of an AI-driven KYC documentation verification solution simplifies the onboarding method for new consumers. In order to assess authenticity, it examines Personally Identified Information (PII) in user records. Modern software cross-matches the data to locate and block high-risk businesses that are listed on international watchlists.