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Document frauds are something that every business has to live with. Many successful businesses lose their connectivity with their clients and strategic partners and many dream projects get stopped. It can be due to many factors but the most common in every case in the past few years is customers with fake IDs committing data breaches and financial crimes.
It is often said that success will not come unless one is completely restless. It’s a fact. Businesses can never be 100% sure of their clients and partner firms. Cases of document frauds are surpassing past records. The financial watchdogs and regulators are adopting new policies for a better customer verification program leaving the enterprises with nothing but the best IDV solutions.
Evolution of KYC Compliance
The margin of fraud was supposed to get reduced with the passage of time and phenomenal technologies, that’s what was perceived when the automated systems got introduced globally. Earlier, back in the days, businesses were used to be conducted within the family for greater reliability, the manual ways for avoiding document frauds and investigating a customer or partner due to the absence of prominent testimonials are past.
In the digital age, still, the ratio of cases of data and financial violations are not getting under control. The reason is the absence of a global IDV solution to avoid document frauds and select authentic alliances. Fraudsters are zero moon gravity steps ahead of businesses as they are seizing every opportunity that comes to them.
The opportunities that are being talked about are automated solutions and smart tools. Digital techniques are used efficiently for committing document frauds. The reason why organizations are failing to prevent all of this is that they are not updating themselves. The organizational infrastructure is meant to be supported by AI-based systems KYC compliance to combat document frauds. Something that has been recommended by veteran firms of different industries but still businesses do not seem to have their faith in the right place.
Significance of Document Authentication Services
Change in the infrastructure of an organization must be brought after extensive analysis and time. However, the shift from the traditional methods or document attestation with solutions of restricted services to an advanced global IDV system should take place without thinking twice. The implementation of a system to prevent document frauds is extremely convenient with a friendly interface. The entire process is automated so it is easy for regular customers to cooperate with the business in KYC compliance.
The business can also operate the system and access saved data in any format in a heartbeat.
In verifying documents, digital solutions confirm the registered citizen from global data storage units. The international databases are secure and any attempt to replicate someone’s identity is detected in a second. Document frauds are avoided as the system is supported by an immense network of thousands of AI models. For any revision in the KYC or AML compliance in the future, an AI-powered system is a must to meet obligations.
The systems to avoid document frauds are also supported by Android platforms, iOS, and other channels.
NFC-Based Document Verification: The Future
The process to authenticate a customer is reaching new levels of perfection and convenience. Any business enterprise can frictionlessly recognize potential genuine customers and prevent document frauds in just a few seconds due to the NFC (Near Field Communication) technology. To avoid document frauds, the firm can confirm customers with biometric ID and an NFC-enabled working system. There are now NFC-enabled driving licences, ID cards, and all. Just like the scammer grabs every opportunity, exactly the IDV providers are doing now, to outgun them.
Impact of Covid-19
Another main reason highlights the need for AI-based IDV solutions for document checks. Due to customer verification and onboarding being completely touchless, healthcare providers and the travel industry have suffered a lot in the pandemic. The new application areas are now revealed. Document frauds are occurring in hotels, cinemas, airport clearances, online pharmacies, and so on. Fake IDs are used to enjoy the perks of medical insurance of some random individual. People are committing document frauds for traveling. Global automated system for ID validation can put a stop to moments.
Key Takeaways
The document frauds are not getting stopped. Imposters will always be there to sabotage a firm’s reputation for their personal gains or for committing financial violations for illegitimate things like terrorist financing, drug trafficking, and other things. It is the responsibility of businesses. An enterprise can avoid document frauds with AI-based solutions and can maximize customers’ experience.