Samurai Code

Last Updated on April 8, 2024 by Umer Malik

In the digital era, companies experience several obstacles, for instance, identity theft. It is a heinous criminal activity that negatively impacts the well-being of the victims. The crime incurs financial consequences to businesses, approximately $6 billion. Live document verification is the latest digital service that protects the crucial data of users effectively. The advanced approach guarantees adherence to AML/KYC standards to safeguard industries from hefty fines. A combination of AI & ML technologies makes sure that live document verification happens at micro levels to catch deception. Consequently, the product is safe and robust. 

Undesirable Consequences of Identity Theft in the Society

Using a fake identity is a heinous crime that hackers use to take advantage of the benefits linked with the victim’s identity. Hackers implement sophisticated techniques to achieve their goals. Fraudsters can use identity credentials to manipulate victims psychologically. They can even use the power of social media platforms to ruin their image. For example, criminals can send controversial messages to victim’s family members and pretend to be angry with them. 

Contribution of Identity Theft and Assumption Deterrence Act 1998 (ITAD) & US Department of Justice

In the late 1900s, congress enforced the ITAD Act of 1998 to fight identity theft. According to the USA Department of Justice, identity theft is a heinous crime with serious repercussions such as more than 10 years in prison along with confiscation of all properties that facilitated the criminal act. 

Implementation of robust security protocols will minimize the increasing incidents of identity fraud. According to the latest report, monetary consequences of identity fraud have reached around $200 million.

The Role of Global Institutions in Fighting Financial Crime Around the World

Minimizing online scam scams is the main purpose of KYC/AML regulations. FinCen, FINTRAC, and FATF pushed all industries to ensure compliance with guidelines and show active participation against money laundering and terrorism financing cases. Implementation of customer due diligence and enhanced due diligence will ensure identity verification of all clients during the official onboarding procedure. 

Previously, professionals performed AML screenings and KYC through onsite sessions. Nonetheless, the technological revolution has guaranteed easy availability of live document verification services around the globe. The application of AI & ML technologies has boosted the efficiency of digital security measures. Clients can benefit from the live document verification solution through online mediums by using any mobile device.

Procedure Behind Live Document Verification System

Combining artificial intelligence with live document authentication services ensures convenience for the user. The technology guides the customer in uploading government-supported records in the course of the client onboarding procedure. The application of OCR technology extracts required data from the customer’s documents and safely organizes it in company storage.

Only in the case of corruption-free data, the client receives the final verification results. Customers must be familiar that live document verification process only produces results from government-issued records that have holograms and micro prints as security features. For instance, clients can upload passports, and driving licenses. If cybercriminals try to bypass the security protocols, the software will halt document processing and reject the application. The general outlook of the live document verification process is as follows.

  • AI-backed product evaluates the authenticity of the records in the course of the live document verification process
  • The software also examines if the client has provided correct information or not. In case, data is false/missing, the technology instructs the client accordingly. Live document verification service also works with multiple foreign languages such as Italian and Spanish
  • AI-supported technology reads MRZ code and examines the authenticity of the client’s documents, using data for deciphering and cross-evaluation
  • In this situation, documents have natural wear/tear, and the originality of the records gets negatively impacted. The software scans documents for crumpled corners

AI-backed technology is more effective than old techniques as fraudsters use sophisticated manipulation methods that traditional approaches cannot catch. For example, micro-level manipulations. Micro-prints and rainbow reflections distinguish official records from fake ones. Thus, AI-driven live document verification service guarantees powerful security against online scams. 

Concluding Thoughts

Implementation of a live document verification system makes sure higher quality of verification results. The record attestation solution also cross-checks information against hundreds of sanction lists to discourage hackers. Integration of AI & ML software boosts the efficiency of live document verification procedures and guarantees a seamless experience for clients. Preventing identity fraud and other financial crimes, are notable advantages of the procedure. The latest digital product eliminates the need for an employee to do the job. Therefore, financial organizations can guarantee compliance with AML/KYC guidelines to fight money laundering and terrorism financing incidents. 

Apart from this if you are interested to know about Investor Verification then visit our Tech category.