Use Know Your Customer Solutions To Identify Fake Documents

Digital transformation has facilitated criminals to attempt scams. Hackers use fake identities to make organizations fool. Fake documents are used to perform illegal activities. Dodging arrest, selling or purchasing assets, and eligibility loans are rapidly growing. Companies and businesses require know-your-customer (KYC) compliance to identify fake documents used by fraudsters.   

As per the report, fake documents increased by 24% last year and is approximated to 18% in 2021. Hence, there is a need for a proper document verification solution to eradicate all criminal activities and make a company secure. 

Why is it Significant to Identify Fake Documents?

The importance of identifying fake documents cannot be ignored. There are multiple reasons why companies must catch defrauding documents, such as:

  1. Anti Money Laundering 

Many fraudsters use documents that are not issued by the government, they may use driving licenses, fake cards, and fake education certificates for the job or loan application process. They use fake certificates in the verification process while opening a bank account. Once the fraudsters are successful in having access to fake accounts they may use them for money laundering. Banks failed to access their original funds’ sources and had to suffer heavy penalties and reputation loss. 

  1. Financial Loss Prevention

Identification of counterfeit documents protects companies from various frauds such as identity theft, insurance fraud, and fake transactions. Many companies have to suffer at the hands of scammers because of their failure in the identification of fake documents. Paper verification helps to overcome the problem of financial terrorism.   

  1. Data Security and Protection

It is essential to identify any document provided by the client for information. A real customer would never try to use any illegal document. If any organization fails to tackle and identify criminals, it could give access to private data fibahub. A company can lose its confidential information at the hands of an inauthentic client.

  1. Avoid Legal Consequences

Document verification prevents legal consequences. If an organization accepts unauthentic documents, it would be accountable for the breach of the agreement. It would have to face various legal complications. Companies are required to establish proper identification and verification processes to make them secure from any kind of risk. 

Why is It Essential to Have Document Verification?

Document verification allows to access genuine customers only. It eradicated the risk of scammers being on board. If companies process proper KYC solutions, they make them secure and trustworthy. Due to digitalization, smart technologies are there to make falsified documents, which seem real. These documents can only be identified with certain verification solutions such as in the KYC process. Without proper document checks, businesses may be sorrowful at the hands of crooks.  

 Advanced Technology to Identify FakeDocuments

With a great revolution in technology, it is quite possible to identify minor variations in the case of forged or fake documents. Advanced AI tools are now there that work with automated algorithms. There has been advancement in the production of scam documents as well, which are unable to be identified manually. AI and ML models in various document checkers are the only solutions to detect forgeries and fakeness.  It is essential to use digital fraud detection technologies to have a keen eye over minor variations.

 Some common flaws used by scammers in falsified documents are below: 

  1. There can be errors in data entry such as grammatical errors, improper punctuations, spelling errors, and improper font. These kinds of errors are used to detect inexperienced fraudsters. 
  2. Another easy redness is variation in the logo design of a particular company. It may be very minor and would be unable to be detected with the human eye. Automatic ML and AI algorithm-using tools are effective in this regard. 
  3. There can be various altered elements such as font size, paper quality, and layout. Most organizations have such a unique font that is unable to have in Microsoft so it can be detected in order to check the fakeness of any document. 

Companies are required to execute the KYC process to verify documents, it would help to keep the fraudsters away. It allows to filter real customers to be there on board.  

Final Words

Fraudsters are very active in executing their illicit plans. They are successful in approaching various companies that do not have proper KYC compliance. These companies are unable to detect fraudsters who use fake documents to reach them. Without proper KYC compliance, organizations suffer penalties for being suspected of being involved in illegal actions performed by criminals. ML and AI-based models are there to fight fraud.  Automated algorithms are there to detect minor variations that cannot be viewed by the human eye. 

Financial organizations are more at risk rate. The powered AI tools provide a streamlined and automatic document verification process. 

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