Identity fraud is becoming an increasing problem day after day for businesses. Criminals create new mechanisms for fraud as identity theft tends to raise problems for customers. According to the 2019 Javelin Plan and Analysis Identity Fraud Report, in 2018, there were 14.4 million users who had become victims of identity fraud, down from 16.7 million in 2017, the record figure. Identity theft in 2018 was nevertheless more burdensome: 3.3 million individuals were liable, about three times as many as in 2016, for any of the liabilities for the fraud committed against them. In comparison, the out-of-pocket fraud losses of these victims have more than doubled to 1.7 billion dollars between 2016 and 2018.
New account fraud losses also increased marginally, with offenders continuing to concentrate on financial accounts including loyalty programs, loyalty plans, and pension accounts. Moreover, criminals, especially mobile account takeovers, are increasingly adopted at authentication processes. By allowing AI-based document authentication services, companies can effectively stop identity fraud and eliminate fraudulent damages incurred by identity theft frauds online from their clients and businesses.
What is Document Verification And What It Is For?
The process of online document verification enables quick and secure enrolment of customers with high accuracy and efficiency and complete identity fraud prevention.ID document authentication functions behind the scenes to guarantee that only legitimate IDs are remembered. This solution analyses the specific details in the records for authentication in order to validate their authenticity and also assures that the names in the agreement are the same as the identity record such that the contract can only be obtained by the designated person.
Checking is only conducted in officially issued documentation such as photo-based cards, visas, licenses for drivers, and debit/credit cards issued by the bank. False or fraudulent papers are immediately refused by the app.
Many of the fraudulent records most commonly used by fraudsters and criminals are:
- Unlawful papers: They are entirely flawed documents. They contain elements such as incomplete holograms or some such set criteria that are basic aspects of the document's legal version.
- Fake documents: This document belongs legitimately to another person, and the fraudster seeks to authenticate himself by using it.
- Modified documents: This is the case when a smart record is changed. The fraudsters here change font and type to exploit the scheme.
Allow Better Results In Digital Solutions
A wall of security for a retailer is the authentication of the identity of the customer. Document authentication as a prerequisite for check and balance device transactions. With the integration of artificial intelligence, the digitized document verification process reduces manual work and increases productivity. Also, it involves quick verification which can be carried out within a few seconds for the optimization of conversion rates to control drop-off rate. Furthermore, the manual document verification process is prone to human error. With the integration of AI, document verification involves a 98.67% accuracy rating for high credit card avoidance and chargeback theft.
If someone is going through the process of document verification, he is:
- Verifying the authenticity of the text and,
- Making sure that the knowledge of the customer is accurate,
- Deterring deception from the fear of possible fraudsters who see a record search at the POS
Verification of the customer's real identification card is a protective measure against damages that can impact shopping, hotel, and financial services activities in various ways. Just a couple of the approaches that ID fraud may try to use include:
- Fraud with a credit card, if a person uses a stolen or false credit card
- Return fraud, in which a person returns merchandise for cash or store loan and uses an identity stolen to record the transaction
- Finance or credit fraud where the individual uses a stolen identity to apply for in-store credit.
- Account theft, if a person wants to access the merchant's funds or profits by providing false ID documents
These days AI plays the same function as the verification officer by using the software which enables document identity verification online. This process helps organizations to conduct transactions remotely by ensuring that the person they claim is who they are on the other end of the exchange.