Abdul Hannan
Abdul Hannan
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ID Documents for High-Potential Online Scams

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Situations of online scams and transaction frauds are rising damaging for the banking sector and monetary institutions. Not only first-party scams involve a person or number of individuals that give fake ID documents to become part of an authorized system but also third-party scams such as information acquired from digital frauds utilized to make online client accounts.

The financial sector exposed over 15 billion records containing client and business information that has been withdrawn or misplaced since 2014. Monetary institutions all over the globe are trying hard to minimize red-zone fraudulent activities. It is anticipated that by 2021, the United States will be funding USD 600 million to fight loss by account application scams. In financial account application scams, criminals use synthetic identity documents and misplace PII to open a bank account.

Fraud Detection Procedure

The most desirable fraud detection tool is ID verification. In the technological environment, the possibilities of fraudulent activities and malicious activity attempts are drastically high. The banking sector and monetary institutions are under the regulations of authenticating every customer onboarding to reduce the high potential monetary crimes such as money laundering and terrorist financing.

Unregulated bank transfers

Online payment services are under the threat of fraudulent payments. Unapproved authorization over client accounts can be accountable for transferring cash to some unusual address. Financing terrorism and illegal transfer of funds are done through online channels.

Mobile scam

A mobile scam is a preeminent scam nowadays in which criminals are able to authorize personal data and imitate it as if a genuine user is making a request. ID verification for clients assists reduce the uncertainties of scams that happen through mobile devices. There are some prevalent mobile scams that are developing rapidly with the invasion of the Internet and smartphone devices. With altering but almost similar occurrence rates, their mobile scams are becoming part of periodic mobile users. Therefore, the demand is to fight the crimes by making sure of stringent ID documents.

ID documents - Do’s and Don'ts for Regulatory Authorities

Digital ID documents are the only answer that aligns well with the laws of making sure you know your customer compliance. Also, to combat high-scale monetary crimes and online scams, identity verification is the most desired solution by company entities.

ID verification includes several techniques of authenticating the identity of users in which document authentication is the most widely used by companies. In online document verification, a client’s government-approved identity document card is scanned to make sure that it has not been digitally misused or included in some fraudulent activity. ID documents give a solid trust for online companies. It is vital to make sure that the online user who is holding the identity document is actually the one who he claims to be.

The various online scam cases can be resolved with mere ID documents that authenticate each onboarding identity. ID verification includes an identity document scan with a front picture to authenticate the identity of people. Due to this, it represents several advantages to companies that find to build trust in their online channels, get a greater level of security, and comply with Know Your Customer & Anti-Money Laundering compliance obligations.

Prevalent document for authentication purposes:

Listed below are some prevalent documents that can be utilized for ID document verification purposes:

  1. Household utility bills such as water, gas, power, television, and phone number.
  2. Lease or rent adjustment
  3. Bank account records
  4. Official photographic identity documents

Less popular documents

Some ID documents are not prevalently used for authentication purposes since they are not anticipated verified when it appears to authenticate the identity of a person.

  1. Lease Statement
  2. House allowance documents
  3. Taxpayer matriculation certificate
  4. Municipal tax bill

Non-approved documents

For identity document verification, some ID documents cannot be accepted when it comes to regulatory requirements. It involves:

1. Envelopes and postcards

2. Internet and phone number bills

3. Statements for personally rendered services

4. Self-filled forms

5. Informal applications

6. Tax-associated documents

For document certification, generally, personally identifiable information is authenticated which must include the entire name and residential data of a person. Listed below are some other requirements:

● The name and residential data should be prominently visible in the document

● It must be current

● There should be a private address given

● It must be approved by a legitimate authority

ID document services also keep a balance between reducing scams and user experience. The artificial intelligence-powered identity document verification gives an optimized user experience that leaves no rock unturned when it appears to a safe company, regulatory authorities, or a seamless onboarding procedure for clients.