In the digital world, innovative technology has facilitated businesses to streamline their workflow but there are still challenges to overcoming identity theft. According to a 2023 fraud report, there has been an overall 18% increase in global scams compared to 2021, having more than 51% of identity theft cases. Applying AI-driven document verification services can help modern-day companies combat scams and guarantee compliance with KYC & AML regulations. This way, companies can strengthen customer relationships and boost yearly profit rates.
The following articles look closely at the significance of document verification solutions and how cutting-edge systems can facilitate active fraud prevention.
Document Verification Solutions: A Brief Overview
A record authentication procedure is about customer ID verification by screening government-issued records such as passports, ID cards, and rental agreements. The software cross-matches original documentation with genuine images to ensure foolproof identity validation. This way, businesses can easily identify and discourage bad actors from exploiting mainstream systems.
As per Markets & Markets research, the global identity verification market size will reach a financial worth of around 18.6 billion dollars by 2027, showing a CAGR of 14.4% from 2022 to 2027. According to the report, the key market drivers behind the industry are rapid digitisation initiatives.
Development in the BFSI Industry
The BFSI sector manages highly private and sensitive data such as users’ bank details, passwords, and ID credentials. This motivates the banking, financial services and insurance sector to implement robust IDV services for effective fraud prevention. In other words, the advanced approach discourages cyberattacks and wins customers’ trust. Furthermore, emerging technologies in the modern world are blockchain, AI, IIoT, ML, OCR, liveness detection and advanced security & surveillance.
By region, North America will have the largest market share during the forecast period (2022 to 2027). Firms in the jurisdiction are rapidly adopting the latest IDV services because of support from AI & ML technologies. Moreover, the rising cases of identity data breaches and growing security concerns are contributing to the development of the identity verification market in the region.
Growth With Respect to Deployment
When it comes to deployment mode, the cloud segment will grow exponentially (i.e at a higher CAGR). It is due to the low cost of cloud services and the widespread availability of SaaS & IaaS models. During the COVID-19 era, users have benefited from cloud services as a measure of compliance & regulatory risks. Corporations that shifted to remote working used cloud technologies to prevent identity theft. Undoubtedly, its expansion will support the progress of identity verification suppliers.
With time, internet use and e-commerce activities will grow while facilitating more frequent use of IDV technologies in modern-day enterprises.
Top Document Fraud Strategies Used By Scammers
Innovative technology facilitates the identification and elimination of fraud.
The following categories discuss various types of document fraud to bypass the security protocols:
Illegitimate records are completely fake documentation as there is a lack of unique characteristics such as holograms and rainbow prints. There are samples of government-issued records that the public can access easily. For instance, documentation on websites, TV shows or presentations. Moreover, any records reported to police as stolen come under the category.
False documentation is not forged or manipulated as criminals steal the records to accomplish nefarious goals.
In this category, fraudsters use various manipulative techniques such as using fake images or records. This way, criminals try to fool the authorities and achieve malicious objectives.
These are original records that criminals modify to bypass security protocols. In case, a company utilises traditional screening procedures, such types of records can fool officers. Only the application of AI-driven document authentication services can help companies discourage modified record scams.
Authentic records are usually blank. Criminals can steal such documentation from supply chains and turn them fake by filling in fraudulent data.
Using AI-Powered Document Verification Services to Combat Scams
During online account registration and performing monetary transactions, staff members ask for government-issued records such as passports and ID cards. Previously, a verification officer asked for details on records and cross-matched data to prevent bad actors from exploiting mainstream systems.
Nowadays, AI & ML technologies have replaced manual procedures, and customers can benefit from them remotely. This way, businesses can perform transactions instantly while verifying the identity of customers with document verification solutions. With time, criminals are using more sophisticated techniques to accomplish malicious objectives and gain instant rewards.
The Bottom Line
The application of AI-driven document verification services streamlines the customer onboarding experience. It analyses Personally Identifiable Information (PII) in user records to determine authenticity. Cutting-edge software also cross-matches data to identify and deter high-risk entities present in global watchlists.
The use of AI-driven document verification solutions can help corporations fight identity fraud and ensure a positive onboarding experience for clients. The GDPR & PCI DSS-compliant services can secure a competitive advantage for users worldwide.