Amidst the coronavirus pandemic and even before that, the globe has faced numerous challenges. The main difficulties were encountered when the communication of businesses shifted to the digital world. Work from home, online shopping, and doctor’s appointments all required digital monetary exchanges. Unfortunately, it paved the way for criminals, fraudsters, scammers, and spammers to attack the already vulnerable world. Criminals upped their game to launder money and finance terrorists while fraudsters stole identities and created fake passports, identity cards, and other official documents. Spammers sent phishing emails, and scammers scammed people to send them money.
The rising trends have increased the need to comply with KYC regulations. The “know your customer” verification helps diminish all the mentioned frauds. It can be achieved through the acquiring of passport verification documents and other identity documents.
How can Passport Verification Documents Help KYC Verification?
The verification of customers is referred to as know your customer verification. It was mandated by regulatory authorities as a global obligation to counter digital identity thefts and other various online scams. Although KYC laws were initially mandated only in financial industries, gradually, they were ordered into all sectors to fight rising frauds. As a result, there are multiple types of KYC compliance such as Know Your Patient (KYP), Know Your Customer Customers’ (KYCC), Know Your Business (KYB) and Know Your Transaction (KYT).
Know your customer verification can be performed through multiple means, but the beneficial and robust verification procedure is when performed digitally.
Manual Vs. Online Passport Verification Documents
Manual passport verification documents have many drawbacks, such as
- They are prone to human errors
- Are costly due to the hiring of additional human resources
- Verification officers cannot keep track of changing regulations easily
- Verification officers do not know all of the countries holograms, prints, and inks
- Time-consuming and resource-wasting task
However, digital passport verification document has multiple benefits such as
- Artificial intelligence and machine learning which is incorporated in digital KYC verification application has the capability to store multiple languages, and text formats
- The document verification software can also recognize holograms, prints, and inks of various countries
- It is a fast document verification process that performs verification within minutes
- It can detect suspicious documents such as
- Edited documents
- Tampered documents
- Changes in holograms, prints, and inks
- False documents
- Fake documents
- Reduces man-power and aids businesses in directing their resources to a useful place
How do Companies Verify Documents?
Companies can perform document verification through multiple means; however, the most crucial factor is to perform all verifications to reduce the chances of missing out on suspicious people. Passport verification can be performed through biometric facial recognition, document verification, and address verification. All these processes come under passport document verification, and let’s have a detailed look at these online document verification processes.
How to Verify KYC Documents?
- User is asked to upload all documents such as passport verification documents, ID cards, and driving licenses.
- The user is then prompted to click a selfie holding the documents to perform biometric verification. The user is additionally asked to fill the online form of identity verification.
- Once the documents have been uploaded, OCR services and ICR software extract texts from the documents and store them in the backend; the document verification software then checks the passport verification documents for any edits, tampering, and photoshop skills used. It further checks the authenticity of the holograms, inks, and prints.
- Then the document verification application correlates the picture on the passport verification documents and the selfie uploaded by the user. The facial recognition software checks for deep fakes, 3D masks, and other facial changing techniques to validate the user.
- If the client or the company wants to perform address verification as an additional authentication, the user is also required to provide utility bills or bank statements. The documents provided cannot be more than three months old and must be issued by the government authority.
Address verification documents are then verified by checking the name on the document, the address, and the issue date. Once the verification process is complete through the online document verification portal, the user is marked “verified,” Details are stored in the back office. Passport verification documents help online document verification to authenticate the user.
Healthcare facilities, travel industry. Financial sectors and even small to large businesses hold passport verification documents for effective KYC compliance. It is necessary to provide customers with document verification certificates to diminish frauds and scams in the digital world.