The evolution of the digital document verification process has impacted the world by transforming security measures and enhancing the customer experience. This advancement has mitigated the risks associated with identity theft and reduced the fraud of document forgery. Shifting towards online verification from manual has improved digital workflows like account opening, online banking systems, and digital checks for authentication. Validity of identity can be done remotely by verifying documents online without facing geographical limitations.
Moreover, the digital document verification process has helped businesses comply with regulatory measures with due diligence and know-your-customer (KYC) processes. It has played an important role in securing systems and creating cost-effective methods for industries worldwide.
Global Identity Verification Market Growth from 2017 to 2027
Over the next 10 years, from 2017 to 2027, the world will spend a lot of money on the authentication of users. This spending is expected to increase from about $5 billion in 2017 to over $18 billion in 2027.
Identity verification is crucial for keeping information safe because it ensures that only authentic people can access it. This stops scammers from getting into fraudulent activities like identity theft, monetary losses and helps protect critical information from being stolen or misused.
How to Verify Documents Digitally?
The online document verification process depends on different aspects, like the industry in which the user works and the type of documents involved. Usually, online verification of documents is being done in four major steps:
- Document Compilation
- Data Retrieval
- Document Verification
- Manual Authentication
1. Document Compilation
The first step in document verification is to compile the document. Depending on the requirement, the user is asked to upload one or many photos of the document. Once the images are submitted, they are pre-processed and examined to determine whether they meet the business requirements. The following criteria have to be fulfilled for further proceedings:
- Is the picture really the document we need?
- Can we see if the document or photo has been changed?
- Does the document have all the info we need to check it?
- Is the photo clear and good enough?
- Does it show the whole document or just part of it?
Document will be refused if it does not meet the requirement. The approved documents will be forwarded for further steps.
2. Data Retrieval
The user uploads a document of identity for the verification process. For data retrieval, the information is extracted through different advanced methods of pattern recognition, Optical character recognition (OCR) systems, and other related methods. Once the related information is extracted, it is compared against the user’s sources. For example, if the user has provided the identity card for verification, the extracted information on the card will be compared with the document provided earlier.
The dissimilarity between the information contained within the document and user-supplied evidence will raise a green or red flag, depending on the situation.
Document Verification
The next step in the document verification process is to check the provided data’s validity. Hundreds of different verification checks are involved in the process, and some of the common verification checks are as defined below:
- Recognition of special trademarks: Many identity documents issued by the government have trademarks like textures, font styles, foils, holograms, and watermarks. These marks are difficult to forge.
- Colorspace scanning: A photo’s lighting, shadow and color give different context which identify whether the document is authentic or forged.
- Cropping and edge analysis: The edges are completely analyzed to check if they are cropped or tampered with in any way.
- Document completion: To check the complete document, it is checked whether all the required pages of the documents are uploaded.
If a document is authentic or valid, this step might also involve confirming its details with a database that issued or has information about that document.
Manual Authentication
In cases where the document is flagged as red, verification has two options to pursue. First, they can simply reject the document. Second, they can send the document for a manual verification process where humans identify the validity of the document. Manual verification checks things by hand to help catch mistakes and make fewer wrong guesses. The manual verification method may require some additional documents for further authentication.
Summing Up
A digital document verification process is important in safeguarding business integrity and security. By using advanced technology to verify the authenticity of documents, businesses can effectively prevent fraudulent activities and protect sensitive information from unauthorized access. This enhances trust and credibility among customers and partners to ensures regulatory compliance, which reduces financial risks associated with fraudulent transactions. As businesses use more technology to grow and change, they need robust ways of checking if documents are authentic. This helps them stay safe when doing digital business.
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