Often when companies on-board new customers they verify their identity documents no matter the collaboration is in a B2B or B2C setting. Most of the times it is to fulfill the minimum regulatory requirements under KYC/AML (know Your Customer/Anti Money Laundering) screening regulations. Domestic and international authorities are always in a bid to fill any loopholes in fraud prevention regulations. One of the major reasons to verify identity documents of customers is fraud prevention also. The increase in frauds and crimes such as fake identity theft, money laundering, terrorist financing, corruption leads to million-dollar losses for the businesses.
Commonly it is believed that KYC regulations are implemented only on the financial sector but the regulatory landscape is changing and businesses other than financial institutions are also obliged to perform this verification on their customers. Because as mentioned earlier, it’s regulatory obligation along with the fraud prevention needs of the businesses.
Travel and hospitality industry
Document verification proves to be a game-changing thing for the travel and hospitality industry. It is cost-effective and improves the security status of an organization. It is used in online pre-bookings, customer check-in, and online payments. Documents verification at certain touch-points during the whole journey of the customer improves customer experience and becomes a competitive edge of the company.
Airports, train stations, and cruise ships are required to identity verification documents of their passengers before onboarding them. All these boards hundreds of passengers at one time. So manual verification prooves to be very hefty for crew and passengers both. That’s why most of these businesses are adopting online document verification solutions to verify the identity documents of the customers.
Cryptocurrencies made remarkable growth in the previous years but this growth is not devoid of fraud and crime risk. Fake investor crime, money laundering/terrorist financing, and fake ICOs are major crimes risk for the industry. All this has tarnished the reputation of cryptocurrencies, it is misjudged for a tool of money laundering.
Document verification of identity documents of customers before onboarding them takes just a few seconds, but it could prevent huge losses. Also, it is the regulatory obligation under the new recommendations of FATF, and the 6AMLD of the EU. Other countries and regions also have laws that require virtual assets companies to verify the identity of their customers through identity documents’ screening.
As most of the crypto businesses are in a digital B2C or B2B relationship, it is not possible to check the documents manually, as there are numerous ways to alter digital documents. So the trend of online document verification is on the rise in this industry.
Online study platforms are quite common these days. Millions of students are connected to online education platforms around the globe. Online platforms offer copyright protected course content to students registered on their platform. Sometimes fraudsters steal account credentials of students and use it to onboard the platform. In this case the reputation of the platform is affected and sometimes copyright infringement may also happen when fraudsters steal the course content.
So identity documents screening at the time of every login ensures that the real owner of the account is making the login attempt and not an imposter.
Here’s the takeaway of this read. Online document verification solution usage is increasing in all these industries. These solutions use artificial intelligence to screen and verify the identity documents in real-time. Easy API integration reduces the effort and time of businesses. A person can be verified within 30 seconds so it doesn’t affect the customer experience like manual verification.