Document Verification to Combat Identity Theft and Account Takeover

The number of cybercrime attempts is increasing as time passes. Cybercriminals use more sophisticated ways of scamming, gone are the days when cybercriminals have to physically steal money from some location. Now, most of the financial crimes are taking place through online platforms. According to an Information Insurance Institute report, the Banking sector has lost 18.4 million in 2018 due to digital crimes. The most successful attempts of cybercrimes are done through identity theft and account takeover.

As most cybercrimes are done to get financial benefits that’s why the banking sector is the primary target of cyberattacks. Because there are thousands of customers onboarding on banking channels every day, so the identification and verification of customers is a difficult and irritating task. Banks and other financial institutions should opt for remote customer verification methods i.e. verifying customers through online document verification software.

Online Document Verification

Customers always demand convenient and secure services from businesses. Like customers, businesses are also adopting more and more automated methods so that they get more customer attention. Good customer services increase the number of customers to a business. With the arrival of smartphones and other communication gadgets, physical interactions are less common now. 

Traditional Document Verification 

Before online document verification customers have to visit the office physically to verify their identity and personal information. This method was very time and resources taking. Businesses have to set a separate department and hire employees for identity proofing and document checking. Traditional document verification was very irritating for customers because they have to physically visit a business’s office. This disrupts their daily routine and in most cases, the verification takes more than one visit. Also, the verification results did not get delivered to the customer at the time.

Automated Document Verification

The above problems raise the need for an identification method that can be easily adopted by customers with minimum resources and time. Online document verification uses only smartphones for the verification of customers and verifies a customer remotely.

Customers just have to upload the image of their required document to the online software.

A Smartphone’s camera or webcam can be used for this purpose. The software extracts all the personal information from the document like name, date of birth, and address. The authenticity of the document is also verified in the document checking.

The online document verification software also checks the expiry date of the document as per the requirements of the businesses. Sometimes the document does not have the expiry date mentioned on it, but the laws of that state have the criteria of calculating the expiry date through the issuance date. The verification software is capable of calculating the expiry date of any state’s document.

Benefits of Online Document Verification

Reduce the number of Identity Theft

Identity theft is a digital crime in which a fraudster tries to impersonate some legitimate user. Identity theft is mostly done during onboarding on an online platform. This is done by having access to the personal information of that user like Social Security Number or credit card number. After stealing the identity of a user, a fraudster might transfer money from his bank account or perform an illegal transaction through that account. 

Identity theft is used by criminals because in this case there are very few chances of getting caught. The other reason for the high number of these crimes is that the victims don’t usually report identity theft. 

Document verification onboards only authentic and legitimate users by verifying their identities through their identity documents. Document verification software keenly observes the information on the identity document to mitigate the risk of identity theft.

Account Takeover Fraud Prevention

Account Takeover fraud is a type of cybercrime in which cybercriminals unauthorizedly access the online account of a user. It is done to get financially benefited or to blackmail purposes. Personal information or financial data of the user is accessed by phishing or other technological tactics. Account takeover is performed on online bank accounts, e-commerce accounts, or social media accounts.

By having a document authentication service on the account sign-in process online accounts can be protected from account takeovers. The user must show the image of the identity document in real-time to access the online account.

Because of its high accuracy and convenience online document verification is becoming a new norm for sign-in and sign-up.