Document Verification Online – How is it Crucial for Companies in 2022?

Document Verification Online

Modern corporations must verify documents online as fraudsters can try to prove their identities with fake and cloned copies. Therefore, to avoid fraud and fake identities, companies must authenticate documents.

Organizations authenticate customers’ data using digital verification systems to prevent fake identities and document fraud. Moreover, document verification online lowers the pressure on employees, increases customer onboarding speed, and approves them quickly.

Document Authentication Online – An Overview

Document verification restricts fraudulent activities and scammers from breaching an organization’s confidential record. Moreover, it helps to monitor the authentication of customers’ IDs. It also allows corporations to maintain and streamline records efficiently.

Many modern corporations monitor customer data using an online technique to authenticate documents. It is a cost and time-saving process which lowers the burden on employees. It also allows companies to check verified documents with accurate and reliable services. Moreover, The overall efficiency of a business also increases.

Complete Procedure Behind Document Verification Online

The state-of-the-art solution can quickly help digital and online platforms. Furthermore, the software asks new customers to perform specific actions during the online onboarding process. The following points clearly describe the record validation procedure:

  • The AI-driven system asks the client to upload their records in real-time 
  • The OCR software extracts required data from given user documents 
  • The state-of-the-art system analyses software within a few seconds, and the customer receives the final verification results.

3 Ways of Document Verification

The document-checking company has a lot of techniques to authenticate documentation. Still, Anti-Money Laundering and KYC procedures determine the genuine customer identities most safely and reliably.

Here are three methods companies use to verify a customer’s identity.

  • Two-Factor Verification 

Two-factor authentication asks for personal information such as customers’ email addresses and phone numbers, but it is a safe verification technique. It sends verification codes to the provided addresses and validates the customers’ authenticity.

  • Knowledge-Based Verification

Knowledge-based verification requires answers to verify the user’s ID. the actual customer or user will quickly answer these questions as they know the answers. However, If a fake entity tries this procedure, it won’t give correct answers. 

  • Biometric Verification

This system recognizes the customer based on their physical characteristics. Moreover, it requires no passwords and includes

  • Facial verification
  • Voice recognition
  • Fingerprint authentication
  • Retina scanning

How Important is Document Verification for Businesses?

Nowadays, fraudsters are continuously searching for ways to exploit the systems of banks or other financial companies and steal essential credentials. Businesses that do not verify documents online allow fraudsters to make them their victims. 

Thus, corporations must perform proper and accurate procedures for document verification. It will not only help them scale quickly but will also allow them to make successful decisions. Moreover, it will prevent fraudsters from breaching a company’s and customers’ confidential data.

5 Techniques of Fraud From Cybercriminals

The following are some fraudulent documentation types that cybercriminals can use to fool the security protocols. The criminal record approaches highlight the significance of document authentication in companies: 

  • Modified Documents

Fraudsters manipulate the original document by changing the font style and handwriting to achieve their malicious goals.

  • Counterfeit Records

Counterfeit documents are replications of original papers. Cybercriminals identify a template and provide fake data through illicit means. Later on, criminals can sell the documents on the black market. 

  • Illegal Records

Such documents are fake because they do not have holograms or rainbow prints. These types of unique characteristics are part of the original records.

  • False Documentation

This type of record has the ownership of another entity, and hackers utilize it to validate their identities. This way, criminals try to fool the security protocols. 

  • Camouflage Documents

Such records have fake issuing authority bodies that do not exist in reality. Although this is a primary type of fraud, it can easily bypass organizations’ security protocols. 

Companies Using Online Document Verification

Automation software can provide employees with ease and efficiently organize the data. Heavily regulated corporations must ensure strict anti-money laundering and KYC compliance rules in banking, insurance, and financial institutions. Companies can enhance their customer satisfaction by simply using online verification solutions. 

Many businesses and industries utilize online document verification systems. For example

  • Financial Services
  • Telecommunication
  • Travel
  • Gaming
  • Logistics
  • IT firms


Old companies face data breaches as they run on traditional verification systems. So, companies need to verify documents online to maintain their employees’ correct records efficiently. It helps the customer’s identity authentication to ensure their originality. It also helps deter fraudulent activities and the company’s confidential data exploitation.

The AI and machine learning-powered solutions offer a risk-free environment to businesses and ensure scalability. As there are zero chances of errors, the customer experience will also improve, increasing their trust. If fraudsters try to exploit the security protocols, the document verification online system will instantly alert the business authority and halt the further process.

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