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Income Verification Documents – Fighting Fraudsters By Authenticating Identities

Income Verification Documents - Fighting Fraudsters By Authenticating Identities

Customer identification has become a necessity for businesses. For companies to flourish in the digital world, enhancing the customer experience in every aspect is crucial. If a customer encounters a fraudulent activity, it can get them dissatisfied with the company leading them to leave. This will cause the firm a huge loss financially and reputationally. Moreover, ignoring the legal authorities can also get them in trouble. Therefore, properly identifying the clients by checking the documents for identity proof is essential before onboarding clients. This includes determining the income verification documents also. To compete with their rivals in the digital world, companies are finding reliable solutions to combat fraudsters before they could provide any sort of damage to them.

Must Read: Overview of Customer Due Diligence- KYC For Banking

Banking Industries Facing the Dangers of Document Scams

Banking industries are inclined to get scammed by fraudsters when they put a request to open an account, ask for a loan to buy a residential or commercial property, provide fake documents for traveling, and much more. The online document verification portal will enable financial institutions to evaluate IDs by providing a more secure layer of security. Document checks should be in compliance with the regulatory measures of anti-money laundering regulations as well to ensure better safety measures. Operating forging detail in the documents, fraudsters can perform illegal transactions or transfer money to terrorist funding or any corrupt person. 

Changing the Dimensions of ID Document Authentication

The changing dimension of the customer’s expectation from a business has caused a demand for a secure and time-saving experience to be executed. Criminals try to appear as normal legal citizens by applying via face-to-face interaction while visiting the bank and submitting the official documents. By using a manual document verification process, the documents are checked by an officer which increases the chance of errors as humans are prone to mistakes. This process can be time-taking and might frustrate the user as well. In contrast, a hassle-free procedure of online document authentication will cause the individuals to get their documents verified in less time. 

How to Verify Documents Online – Using Mobile Biometrics

To verify documents, customers are required to take a picture of their government-issued document by using the camera of their mobile phone. The document image is used for validation as it is scanned while extracting the text by using the technology of optical character recognition. Businesses further put forward a requirement for uploading a picture of the individual which they may take using a smartphone camera, for determining the individual’s authenticity with the proof of evidence of a photo posted on the ID documents provided by the client. The results of the verification are generated displaying whether they are authentic or not.

Various Kinds of Documents Needed for Verification

Different organizations may ask for other kinds of documents for document attestation. For banks and other related financial corporations, a customer might be asked to provide their passport, driving license, or national ID. However, other documents such as utility bills, council rent cards, credit cards, and a birth certificate may also be used for verification depending on the specific requirement of each company. Photocopies of the document will not be accepted so clients are required to provide original documents.

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The Attack of Distinct Illicit Document Frauds 

Fraudsters are getting smarter with the evolution of technology as they have devised new fraudulent ways which put a strain on the id document authentication process. Duplicating the documents or stealing the information to use it for forming counterfeit documents is a tactic of scammers. Falsifying the details about someone has given a rise in the attacks of identity theft. Criminals can change the picture in the original document by using different digital software available for photoshopping. The watermarks and holograms can be tempered by modifying them according to the own desires of the fraudsters. Using the pre-designed sample of government-issued documents available publically on the internet for filling out fake data is also a technique used widely by fraudsters to gain access to the company illegally. 

Wrapping it Up 

Checking the originality of the documents of the individual before establishing links with them can prove to be fatal if trusted sources are not used for data authentication. Relying on the manual inspection of data in the documents for identity proof with no or limited training of the employees can cause the company huge losses if any important information is missed or any fraudster gained an access to the system. The dealy in generating results can affect the interest level of customers who will move towards those companies who offer a time-saving online document verification portal. Hence, to save companies from the nightmare of losing customers, it is vital for them to establish income verification documents services. 


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