Online Document Verification Preventing Cyber Scams In Digital World

Verifying strangers’ identity on the internet is challenging for businesses—especially fintech, which relies on the digital world. Financial institutes must comply with national or international regulations. So they can protect themselves from financial fraud and legal consequences. 

The best way to comply with regulations is through online document verification. Document verification is the traditional way to verify customer identity. In this process, companies demand customers upload verification documents. After the client submits the document, the company’s human resource representative checks the papers’ legitimacy. But now, the adoption of technology converts the document verification process online, which makes the entire procedure smooth and secure. 

What is E-KYC verification? 

The use of advanced digital technology in electronic KYC is known as e-KYC. The online document verification system is time-saving and more accurate than a traditional verification process. According to the Federal Trade Commission (FTC), 1.4 million fraud reports in 2022 resulted in $1.48 billion in losses. To combat these frauds, various organizations need to adopt electronic document attestation. Companies must comply with KYC regulations to know their customer, which is only possible with document verification. Verifying provided documents enhances their security strength and protects them from financial fraud, identity theft, money laundering, and criminal organizations financing. Electronic KYC has now become an integral part of companies to verify customers’ identities.

In digital transformation, businesses need 360-degree protection from cyber scammers. The Covid-19 pandemic changed everything; where the world was closed in the box, digital technology helped many companies to continue their operations. Adopting advanced techniques in the banking industry provides them with new customers, proactive solutions, and an effective traditional banking system. 

How Does Online Document Verification Protect Digital Businesses?

However, as digital technology develops, criminals become more skilled at utilizing the internet; as a result, institutions and the government are putting increasingly stringent rules and compliance requirements in place. Mixing traditional techniques of document verification with digital advance technology will enhance companies’ security. Given below are the steps of how the online document verification system work: 

Document Collection 

The first step is to collect data from the customer, in the traditional method where the customer has to come office to submit verification documents. Now after advancements in technology, companies can collect all verification documents with the help of online document verification software. Customers only have to register on the platform and can upload required documents from wherever and whenever. Remotely data collection optimizes the customer onboarding experience and minimizes time-consuming. It also assists companies in saving time and transforming their services into efficient ones. 

Document Format Check 

Online document verification software checks the format of uploading files in real time. The documents submitted by the client should be in the correct format (JPEG, PDF, etc.). It will guarantee that the papers can be appropriately evaluated and proceed. The online system respectfully notifies the user that the submitted papers need revisions if the documents have a different format. The guidance of that document verification software assures that documents are compatible with the system. Company representatives also can customize the process according to the policies and depending on the situation. It ensures businesses that papers comply with regulations. 

Document Integrity Check 

After collecting documents in a valid format, the software reviews its integrity by checking the visible security features. These visual features depend on the nature of the documents, such as holograms, borders, signatures, etc. Confirming these features ensure companies that papers have not tampered with or counterfeit. Document attestation software utilizes advanced technology which cross-checks all papers from their original version. Authentication of documents ensures companies that papers are not tampered with since their creation. It will assure the companies that the customer is trustworthy. 

Document Extraction 

In this step, data extraction starts with the help of OCR (Optical Character Recognition) technology. It will convert all hard-written data on the papes into a soft digital format. Then store that data in the secure database. When the data is organized in the structure, it proceeds for further analysis. The OCR technology of the online document verification software ensures authentic results in the validation process. Document attestation service providers use a rigorous approach to ensure transparency and accurate results.  

Document Attestation 

Next, the documents and stored data are cross-referenced by the provided information and checked from various databases. These databases might be government or outsiders. It entails checking data for validity and compliance with established standards using specific requirements or procedures. Various tests are run on the data throughout this validation process, including checks for correctness, consistency, and completeness. The document also checks by the AML, CTF, and KYC databases, among others, to verify the provided information does not match these criminals. 

Wrapping-up Online Document Verification 

Document attestation is compulsory for businesses to defend themselves from financial fraud in the digital world. Online document verification accelerates this process and ensures companies get genuine results quickly. It also enhances businesses’ security strength along with customer satisfaction and experience.