The online document verification process is an advanced tool for banks to protect themselves from financial scams and comply with regulations effortlessly.
Document verification is the oldest and most traditional way to identify customers in any business. In the current era, when the high-speed internet, smartphones and digital innovations are converting the world into a digital village, the document verification process is still an authentic and reliable way to uncover a person’s identity.
Although now, after advancement, many changes are happening in the document attestation process. However, proof of identity still needs to be provided, along with details like name, birthdate, address, and phone number.
What is Document Verification Process?
Document attestation is a process of verifying the authenticity of the papers provided by the customer as proof of identity. There are different documents, such as driver’s licenses, ID cards, utility bills, passports etc. It depends on the bank’s policy, what type of document they accept as identity proof. The verification document process checks the visible security features, stamps, holograms, fonts, signatures, borders, and ID pictures and matches the data of the documents by cross-referencing with the user-provided data. In the manual process, all work is done by the human resources, which is time-consuming and prone to human error. On the other hand, online document verification conducts the same process in less time and provides authentic results.
Why is the Document Verification Process Important?
Even as the world continues to evolve, the threat of identity theft remains. Document forgery is the first step of any financial crime. From money laundering to terrorism financing, all illicit activities start with a fake account. Most criminals target small businesses and use their information to open new accounts and acquire large amounts of insurance. The financial institutes that became the scammers’ prey lost their profit and damaged their reputations.
Every financial fraudster attacks in different ways, from counterfeit credit cards to attacking the savings account. Criminals always dig for new information about users to use in identity theft. Unfortunately, the internet makes it simple for them to collect anyone’s data. We all provide information about ourselves everywhere, sometimes on random websites to get gift cards or buy new things from e-commerce stores; digital information always persists. The sad point is that scammers can use that information against businesses.
How Document Attestation Prevents Financial Scams?
When document forgery is that much easy now, the question is how can a regular user fight against that scam. That’s why business and financial institutes use a document verification process to monitor that the provider of documents is the actual owner of papers. The average user can not protect themselves. However, they can improve their security by following these security tips:
- Protects devices with passwords
- Daily check business emails
- Freeze children’s bank accounts
- Monitor credit cards and debits cards monthly
- Install antivirus software
- Enable two-factor authentication
These are some tips an internet user can follow to protect their identity.
How Does Online Document Verification Process Help Digital Banking?
Digital banking is the future after Covid-19 Pandemic; communities are addicted to their comfort zone. Online shopping stores are a great example of that. The same goes with the banking system now; customers demand an easy and smooth document verification process which can only be possible with the help of online document checking. Here are some benefits of the online document verification process for the digital banking system.
Document authentication protects businesses from financial scams. Financial institutes such as banks can detect document fraudsters before they cause any harm to their secure environment. The advanced technology of online document verification checks all documents using various validation checks. These different validation checks ensure the companies that copies are not forged or counterfeit. In the proactive digital document attestation software, biometric technology is used to enhance security. The same technology is used for facial and voice recognition to eliminate the need for physical appearance in banks for face-to-face verification.
Numerous businesses, particularly financial institutions like banks and insurance firms, are subject to legal requirements. Examples of these rules include Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. These all are made to protect financial institutes and their customers. So no one can misuse their product and service for any financial crime. The digital document verification process makes it simple and easy for banks to comply with all these regulations. Plus, online document-checking software is updated when any new policy is added to the legislation. It will keep businesses up-to-date, and it also prevents unwanted financial scams.
As digital fraud is increasing day by day, financial institutes need to follow the latest digital innovations to overcome these fraudsters. Converting the traditional document verification process into proactive advanced document attestation is a perfect technique to prevent financial scams. Digital onboarding a new customer is a smooth and effortless procedure for banks.