As companies are forced deeper into the digital revolution, techniques used by fraudsters also evolve to bypass new security processes that firms are implementing. Imposters create fake physical papers because they sell at a higher average cost on the dark web than scanned versions. Before investing in an online document verification service, one must know Frequently Asked Questions (FAQs).
FAQ #1: What is document verification about?
In online document verification, users validate their papers and ensure they are not forged, tampered or altered. For instance, authenticating utility bills, financial statements, licenses, certifications, and passports belong to the user who submits them.
FAQ #2: What are document verification types?
Usually, document verification takes different forms, depending on the business needs. The most typical forms of documentation verification include:
- Address verification
- Education verification
- Citizenship verification
- Employment verification
- Certification verification
Additional document verification forms also exist. Some companies consider passports, driver’s licenses, and government-issued IDs for document validation.
FAQ #3: What is digital document verification?
Many businesses in the past required users to be physically present, but document verification has changed this technique. Hence, businesses are increasingly moving online, and so has verification. Digital document verification is the technique of verifying papers remotely and digitally.
FAQ #4: What are the most common document verification use cases?
Document verification has many use cases. Some of the most common include:
Document verification is a technique to ensure that the client is authentic when a firm starts working with a new vendor. It also plays a role in fulfilling Know Your Business (KYB) limitations.
AML and KYC compliance
Document verification service usually forms a vital piece of the authentication puzzle for firms that are subject to AML/KYC regulations.
Many enterprises leverage document verification using AI for customer onboarding and account opening strategies. E-learning services, digital health companies, financial institutions, and social media or online dating websites are examples of companies that constantly need document verification as a part of the account opening process.
Firms dealing in age-restricted goods like alcohol, online gambling, tobacco, adult entertainment, and prescription drugs leverage document verification to authenticate the new user age.
Document check assists firms in identifying and mitigating diverse fraud types such as identity theft, account creation fraud, phishing attempts, etc.
FAQ #5: Which documents are required to execute the verification process?
The documents firms choose to verify and collect depend on the business’s unique needs and the industry. The individual document includes:
- Social security card
- Birth certificate
- Permanent resident card
- US military card
- Bank statements
- Tax returns
- Citizenship certificate
- Employment records
- Educational certificate
- Proof of address
- Proof of insurance
- Business documents
- Proof of ownership
FAQ #6: How long does it take to verify online documents?
Online verification of documents can be executed within minutes as it varies from business to business, relying on the specific identification solution.
FAQ #7: Why is document validation necessary?
Document validation is the method used to authenticate the documents that users upload. It’s a necessary step in stopping fraud and identifying forgeries. Without authentication, it is easy for scammers to potentially open an account using fabricated or stolen information.
FAQ #8: Why are documents rejected during verification?
Documents are rejected during verification due to the following reasons, such as:
- The document must be clarified: It will be accepted if readable. This can be due to low-light conditions, a dirty camera lens, a blurry photo, or poor quality.
- The document must be completed: If the user uploads a partial document scan, it can be rejected. Examples are uploading just a single side of an insurance card rather than both.
- The document needs to be updated: Expired documents are usually not accepted for authentication purposes.
- The document does not match user-provided data: The paper will be rejected if the data given by the user does not correspond with the one in an uploaded document.
- The document is considered falsified: The paper will be rejected if a copy is fake or falsified.
FAQ #9: What kind of documents are needed while verifying invoices?
While authenticating invoices, it’s crucial to have backing papers such as purchase orders and packing slips to confirm that services or items are billed accordingly.
FAQ #10: Which user documents are used as address proof?
The following document types are used as proof of address (PoA) such as:
- Current utility bills, generally not older than three months
- Current bank or credit card information, usually not older than three months
- Government-issued papers such as a driver’s license, national ID card, or passport
- Rental or lease agreement
- Tax records like property tax bills, income tax returns, or assessment notices
Authenticating online digital documents is important as a consumer wants easy access to the growing number of online services. Additionally, companies want this without compromising on data security.
YouTube: How to Scan a Document to Your Phone
Photo credit: The feature image is symbolic and has been done by Andrey Popov.This guest article has been submitted by Emma Marie. While we appreciate guest contributions, it's important to note that the views expressed by the author are not necessarily reflective of those held by TechAcute.