Document Verification- A Solution to Fight Identity Fraud

Identity

Since the growth of online businesses and e-commerce platforms, identity theft has also been on the rise. A report on identity theft states that only in 2018 there have been identity theft crimes affecting around 14.4 million victims. Covid-19 has not helped with the situation. The global lockdown has made the world shift online and this has increased the number of online activities. More online shopping means more online transections which means more fraudsters are ready to steal the personal information of the people. In order to be dealt with this issue, an online Identity verification solution is required. This solution combined with artificial intelligence can now perform the verification process on the documents of the individuals to verify their identity. This AI-based document verification solution has played a key role in assisting businesses with safer operations. 

The problems of Document Verification 

However, this process might take a very long time to perform verification on each individual and it still might not guarantee any accuracy. Time isn’t the only thing that is spent on it, there are an operating cost and labor cost of performing this process. Even still, if the fraudsters are able to slip through the system, the company not only has to fulfill the loss of the fraud but also faces the consequence of the strict action taken by regulatory bodies for not complying with identity verification regulation.  

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Types of frauds

Illegitimacy of the documents: The illegitimacy of the documents refers to when the documents are completely fake. They lack the holograms which the official documents entail. They also lake the different standards which are part of any legitimate document. 

Falsifying of the documents: The falsifying of the documents refers to when the fraudsters make an attempt to use a document that belongs to someone else. 

Modification of the documents: The modification of the document refers to when a document, although original, is altered in some way, for finding the desired result. The document modified or altered is thereby exploited for finding illegal gains.

How AI-based Document Verification Works 

We all know the process of whether account opening or making transactions, we are required to submit a government-issued Id document. These identity documents could be anything from Driver’s license to an ID card or even a passport. Then by using these documents, there is a verification officer that verifies a person’s identity by matching the picture and details of the provided document with the previously submitted identity documents. It is done to ensure that the person really is who he is claiming to be and not an identity thief pretending to be someone else.

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The AI-based identity verification solution is performing the same role as the manual staff. The software integrated with artificial intelligence can now perform online document verification. The customer is asked to submit a picture of their identity document or government-issued document online to have their verification process completed. 

The government issued documents used for identity verification can be: 

he predefined document types are as under:

  1. National id card
  2. Driver licenses
  3. Passports
  • Bank-issued documents:
  1. Debit or Credit cards

Following is How the Process of Document Verification Works

  • Authenticity Checks

The artificially intelligent learning models ensure that the document submitted is authentic and not tampered with. 

Format Identification

AI-based solutions can analyze the format of the identity document to ensure its authenticity.  

Authenticating MRZ Codes

AI also verifies the MRZ- Machine Readable Zone by analyzing whether it has been tampered with or not. After the verification is done, the MRZ is decoded and it is matched with the information given on the document. 

Detecting Forgery Signs/photoshop/tampering 

Machine learning trains the AI model to detect any change in the format of the document. If the document is tampered with or forged, the AI will detect and it alerts the authorities of the possibility of the fraud. The human eye alone cannot catch these fraudsters this is why integrating this solution with artificial intelligence has made the whole process of identity verification a lot more accurate.

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Micro prints

The government-issued identity document comes with a microprint. It is an additional layer of security. To verify the document, the AI checks the micro printing as well.

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