Document Verification Service – Reducing Financial Frauds in Businesses

Finance No related tool

Document verification is a process to attest the authenticity of the documents for verifying the customer's identity. As life pivots on the fast track, it's time-consuming for businesses and financial institutes to perform manual document attestation. Many online document verification services reduce financial fraud and save time.

By automating document verification services, businesses can accelerate their onboarding procedure and enhance the user experience. In this article, we glance at how to document verification safeguards businesses from financial fraud.

Online Document Verification in Businesses

Document verification service, Businesses or financial institutes work so hard and try many efforts to make sure all works according to plan. But one scammer's attack can burst the reputation and bottom line of the company. According to the latest federal trade commission data, the consumer reported more than $8.8 billion in losses because of fraud, and the most common is the imposter scam. 

Scammers usually use a believable person's name or document and pretend to be connected to a well-known company. Most of the scammers use fake government agency connections. 

These are some Identity theft fraudulent tactics

Fraudulent documents

Most of the time, scammers make forged documents of any person and use company details. They also make random companies with other merchants' names to perform scams. 

Mysterious Transactions

Scammers use irreversible money transfer gateways, making it impossible to track and refund. Some scammers create urgency for payment, so businesses can not take protection steps.

Phishing and Smishing

It is the method cyber scammers use to dig the information about your company by developing a replica of the website and seduce you to add financial, address and other business information.

Dumpster Diving

This is shocking, but believe it or not, it is common for most identity thieves to dig the waste for a new personality. Thieves rampage from dustbins and other waste materials to find personal information of the person. Protect information by shredding all documents that include personal data.

How Document Verification Service Protects Businesses?

Document check is only a way to disclose the identity of the customer. Knowing your customer prevents businesses and financial institutions from identity theft. In 2022 FTC reported they received 1.1 million reports of identity theft, most of them from banks, such as problems with insurance loans, credit cards or lenders. Following are some methods from which the document verification process reduces financial fraud risk.

Facial Detection

Online document verification work on machine learning and robust technology. It compares a picture a customer sends and a photo on the document to ensure both are the same person. Photos tell crucial information about the person's identity. The document verification service passes photos from the hundred validation checks in seconds, which manually is impossible. 

Incorporating Signatures in Document Verification

Adding signatures to document verification can enhance security. Signatures are unique to individuals and can serve as an additional layer of authentication. By analyzing and comparing signatures, businesses can detect forgery in legal and financial documents. Integrating signature verification not only adds an extra layer of protection but also aligns with legal compliance standards, making it a vital tool in combating financial fraud. You can generate signatures using tools such as Signature Generator

Instant verification

Real-time document checking is the perfect solution for banks and financial institutes to reduce cost, time and workload, simultaneously improving customer experience. The robust technology extracts the data and correlates it from the database and other verifying documents from the user. Document verification service provider checks all security features of the given papers, such as the watermarks, signature, fonts, etc. 

Following Regulations

As the wide range of transitions rapidly happening, document attestation enhances complying with AML, KYC and KYI regulations. The fast document verification process reduces onboarding time and provides a furnished experience. These compliance standards highlight that businesses have security measures to protect them from financial fraud and money laundering. Document check ensures the owner of the papers and prevents counterfeit documents.

Prevent fraud

Document verification detects the scammers before they cause any harm. Document verification service eliminates fake and forged papers from your ongoing workflow. Document checking plays a crucial role in protecting companies from fraud.

The authenticity of documents ensures companies that the person giving the information is the owner and not scamming by using a stolen identity. Online document verification service collects the paper directed from the owner by capturing a photo with the documents, reducing the chance of the tempering.

Which Businesses' Document Verification Service Assist?

Document verification is vital for all businesses. If they are dealing with customers online or physically, they should know about their customers. These are some businesses which taking benefiting from the online document verification process.

Financial institutions

Banks, insurance, and credit card companies require complete document authentication and identity verification to onboard new customers. Document verification is essential for clients to open new accounts, transition and apply for the loan. It helps them to know their customers and businesses in which they are investing. Incorporating a thorough Business Verification process is also crucial, ensuring that the entities themselves are verified, adding an additional layer of trust and security in financial transactions. 

Educational institute

In the education industry, document verification services are often used to verify the identities of students and staff members and authenticate academic credentials such as transcripts and diplomas. Document checking is essential for institutions that offer online or distance learning programs where remote proof is necessary.

Employment Industry

In the employment industry, document verification services are often used to verify the identities of job candidates, conduct background checks, and authenticate employment eligibility documents.

Conclusion of Document Verification Service 

Running a business is not easy. Mainly if it depends on online transitions, one tiny error in the processing can cause you a significant loss. Document verification services ensure that businesses are protected from financial fraud and imposters. It monitors the legal and security matters related to the KYC and AML. 

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