Technological Advancements Playing a Positive Role?

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Technological Advancements Playing a Positive Role?

Ever since the existence of humanity, new innovations and technologies are made to enhance the standards of living. Every day millions of dollars are invested in several sectors to enhance their operations and work processes. As a result, our lifestyles are improving with every passing day. An emerging industry, IT, has revolutionized our lives in countless ways. The work that involved much time and human effort is now finished in a couple of minutes or seconds with the assistance of computers.

 

Like other inventions, computers are often utilized in good sorts of ways, counting on the need of the user. Some users utilize computers to their best ability for the betterment of the planet and its inhabitants, while others use them to cause harm and damage. Since the arrival of the web, criminals are deceiving and exploiting users through fraudulent practices. Every now and then we hear about cases of identity theft, internet fraud, scams, phishing emails, etc. The Federal Trade Commission (FTC), states the entire number of fraud cases reported in 2018 was 1.4 million and other people reported to have lost money in a quarter of the cases. People lost about $1.48 billion in fraud cases in 2018. This has caused substantial loss to institutions, individuals, and businesses. the entire system is disrupted as a result of such practices.

 

How to combat this threat?

 

Global regulatory authorities have introduced KYC and AML compliances that financial institutions and banks are sure to follow and cling to. This is often to make sure that every single one of the financial transactions is monitored and therefore the incidents of fraud are diminished. Thanks to these reasons, businesses and individuals also are encouraged to adopt these regulations. KYC is also known as Know Your Customer refers to the identity authentication of consumers to determine whether or not they are who they claim to be. The identity is verified by attaining their personal information and matching it with their personal documents.

 

It is a sophisticated and time-taking process and customers nowadays don’t have the time to go to the govt, consulate, and embassy offices for conducting their KYC measures. However, thanks to advancements in technology, the identity verification process has been automated through the utilization of AI systems. The new technology works smoothly and increases the precision and efficacy of the ID verification process, diminishing time, and labor. This will help in the prevention of threats from scammers and fraudsters, who have the tendency to negatively affect businesses.

 

There are some ways of biometric identification online, but those commonly used are facial identification, document verification, address verification, two-factor authentication, and consent verification.

 

Why is Document Verification needed by businesses?

 

An integral method to conduct KYC or verify the identity of consumers is documentation verification. The method involves the end-user verifying the authenticity of his/her documents to the banks or businesses. In banks and other state institutions, individuals are desired to verify their identity via the display of govt-issued documents. The machine intelligence software checks whether the documents are genuine or unauthentic. If the documents are real and authentic, the digital documentation verification is completed, and therefore the customer is onboarded on the digital platform.

 

The digital document verification process mainly includes four steps. First, the customer is required to show his/her identity documents in front of the device webcam. The document is then scrutinized by AI-powered software to verify its accuracy. Counterfeit or copied documents are immediately detected and refused by the software. The subsequent step involves the extraction of key information from the document using OCR technology. The details are safely stored within the office of the verification provider and monitored by human representatives to further validate the accuracy of the documents. Then the results are sent to the business posing for them. the entire process takes only a few seconds.

 

Scam and fraudulent transactions have unwanted consequences for both individuals and businesses. Fraudsters can change their identities and gain access to the systems, posing themselves as genuine users. No one can guarantee the hazard they can pose to banks, businesses, and even individuals. Losses as a result of scams and frauds trickle down at every level and ultimately have negative effects on the entire economic system. Therefore it’s imperative to conduct proper customer verification and due diligence so as to attenuate the risks of fraud and other criminal activities. The digital documentation verification process plays an important role within the Know Your Customer (KYC) process and prevents the probabilities of cash laundering also

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