In the age of the fourth industrial revolution, the rise of technology has facilitated the growth of the business world. However, scammers have also used advanced technologies to accomplish malicious goals. According to the National Council of Identity Theft Protection, there were around 6 million reports of identity theft which cost US victims around 6 billion dollars. The alarming statistics motivate experts to take action for effective fraud prevention. Document verified services can help businesses actively combat fraud and facilitate following the latest KYC & AML regulatory obligations. This way, corporations can strengthen customer relationships and secure a competitive advantage in a tough market environment.
The following blog takes a closer look at the significance of document verified solutions and how businesses can achieve milestones with innovation systems.
Top 5 Document Fraud Strategies Utilised By Criminals
Scammers can use cutting-edge technology to accomplish nefarious goals and exploit victims for free benefits. The following sections discuss five record scam examples cybercriminals often use to bypass defense mechanisms.
1.Illegitimate Documents
Illegitimate records are completely fake records. Such documentation does not have elements of original papers such as holograms and rainbow prints. A type of illegitimate record is counterfeit documentation.
Counterfeit records are replications of original paperwork. In reality, cybercriminals use false templates and fake data & images which fraudsters can easily obtain from illicit means. In the end, perpetrators can sell the documents for big dollars on the black market.
2.False Records
False documents do not contain forgeries or manipulations because criminals steal such documentation from owners. This way, scammers can easily bypass mainstream security protocols. A type of falsely represented document is an imposter record.
The imposter records are genuine but the legal owner does not represent the documentation because criminals claim the possession.
3.Modified Documentation
Modified documentation is original records that fraudsters have forged for malicious purposes. Criminals can alter records in various ways such as:
- Altering variable data
- Inserting genuine information from other records
- Deleting specific information
- Using fake stamps/ watermarks
- Utilizing photoshop techniques to manipulate images
4.Blank Stolen Records
In reality, the original documentation is blank. When criminals leak the paperwork by filling in false information, such records become fraudulent. Fraudsters steal the records from manufacturing supply chains.
5.Compromised or Sample Documents
Sample documents are government-issued photos of records that the public can access easily. For example, images shared on official websites, TV shows, or presentations. Records reported to security personnel as stolen also fall in the category.
Using AI-Driven Document Verified Services to Fight Scams
During digital account registration or executing financial transactions, the staff members ask the client to submit government-issued papers such as a driving license or passport. Customers must know that the document-verified systems only accept official records and other documentation will be immediately rejected.
Previously, an authentication officer verified all the details on records and cross-check data against global watchlists. Nowadays, the application of record validation solutions has streamlined the whole process while replacing the verification officer.
Customers can also benefit from the innovative solution remotely from anywhere worldwide. Moreover, businesses can execute monetary transactions without a hassle.
Fraudsters are becoming highly advanced with time by using advanced deceptive techniques. The application of record authentication services can discourage criminals from exploiting mainstream systems.
Procedure Behind Document Verified Solutions
Customers can benefit from cutting-edge systems from anywhere in the world. Records that can be authenticated with the help of advanced systems are rental agreements, CPR smart, utility bills & bank statements. The following points discuss the whole process of record authentication services:
- Capturing: The user must upload a photo of government-issued records in real-time.
- Extracting: The OCR technology extracts the required information within seconds.
- Screening: The AI-driven solution validates record format & user data accurately.
- Receiving results: The customer gets the final verification output and the company’s back office stores the outcome.
New clients must know that document-verified systems only display results in the case of original records and there will be no outcome in the case of fake documentation. As per Straits research, the global IDV market size will exponentially grow to around 32.94 billion dollars by 2030, displaying a CAGR of 16.35% for the forecast period (2022 to 2030).
As per the report, North America (US & Canada) is the largest shareholder in the market with shares exceeding 41%.
The Bottom Line
AI-powered document verification services streamline the onboarding process for corporations and analyses data to determine record authenticity. This way, companies can easily attract genuine customers worldwide and feel confident while strengthening relationships with clients.
Collaborating with a competent third-party vendor can support enterprises executing a PCI DSS-compliant document verified solution. This advanced approach discourages fraud, saves time, and optimizes the use of company resources. Moreover, the state-of-the-art system can help corporations forgo traditional methods that are highly ineffective.
