Document Check System-Journey to Successful KYB & Fraud Axing Process


Online businesses are becoming a norm in the financial world and are considered an emblem of the progressive world. The modern world is more integrated and technically exposed to vulnerabilities. FinTech is expanding business sitemaps with the help of the latest technology innovations but challenges also strike at the heart of the development.

Fraudsters are never at peace as they find ways to earn their evil financial objectives. Crooks normally forge documents for fake transactions or data spills. Document verification is necessary to overcome financial-based crimes. The post-Covid scenario further aggravated the situation and document check using AI technology is the only substantial procedure to combat fake identity-based frauds.

Bloomberg reveals a $4.8 million scam using forged driver’s licenses and other fake documents. It authenticates the gravity of criminal offenses based on tempered and fake documents. Digital documents check procedures can secure the financial system.

What is KYB in the Financial Sphere?

Post cold war world witnessed a rapid technological revolution and today the corporate sector defines the global economic indicators. The growth of the services sector is no less than a quantum jump where more businesses and industries are a part of the financial space. KYB is about to Know Your Business and it verifies whether the business is genuine or based on a fraudulent structure for illicit gains. Therefore, it is mandatory to verify documents of all the businesses to avoid economic upheavals.

Why is Document Check necessary for KYB & KYT?

Technology is flourishing at an exponential level and crime proportion is also escalating at the same pace. Money launderers and terror financiers approach filthy methods to showcase the validity of businesses and transactions without genuine proof.

Document check is imperative for KYB and the scanned identity verification document is proof of eligibility for financial services. Without document check, criminals would take no time to implement the fraudulent schemes. Manual entry of document details is not only a laborious process but also more error-prone. Technology-based compliance methods are reliable and practical also. Artificial intelligence is playing a focal role in procedural improvements for fraud mitigation.

Know Your Transaction (KYT) is also connected with KYB and it ensures the originality of financial transactions without the involvement of fraudulent documents like ID cards, licenses, passports, company papers etc. Various cases report customer fraud for a credit card, loan approval or insurance policy.

This is why document check service is strictly applied in the US, UK and other parts of the world. Global powers provide parameters for gauging global financial security and revenue. It is essential to set the seal on documents verification compliance procedures to fight against financial shortcomings.

Pandemic Link with Document-Based Fraud

Covid-19 upheavals resulted in economic fallout across the globe. It is irrefutable that the pandemic shaped a new phase of digitization for global businesses. Online financing also paved a new path for criminals which can be witnessed in the form of forged documents. Financial Times reveals that UK taxpayers lost almost 5bn Euros at the hands of fraudsters, who exploited and earned huge costs. Various other incidents similar to this one, demand a formidable document verification process to battle against criminal actions. Hundreds and thousands of people exploited vaccine documents to earn significant amounts. Technology and document checks are deeply connected with each other for excellent and accurate results.

Benefits of E-Document Check Service

Verification is a basic requirement in every financial system to validate KYC, KYB, KYT, and KYI procedures. Document check process is becoming more precise and authentic for customer convenience. Furthermore, criminals are facing more challenges with electronic document check procedures. Some of the important benefits are given below.

a)   Documents Authenticity Check

Large organizations and even startups are installing electronic document checking equipment to verify important documents like ID cards, business cards, business PNA and vehicle licenses etc. It reduces the chances of error to a maximum extent.

b)   Tighten Hands over Money Launderers

Global organizations are taking strict measures to frame AI-enabled document check mechanisms to keep money launderers at bay. Forged documents are used to get access to sensitive data or financial assets.

c)   Convenience & Reduced Risk of Onboarding Customers

Digital document authentication requires more AI-advanced features to recognize forged text in tempered documents. Genuine customers can get access to complete financial services. Proper document check mitigates high financial risks and adds value to the customer experience online.

AI Contribution to Document Verification

Artificial Intelligence is filling a bundle of manual gaps with the use of various techniques like QR code, patterns check, OCR technology and digital processing etc. AI-powered models are incorporated with digital document check procedures to verify the text. Manipulated documents are detected immediately with the help of the software. In this way, technology is playing an essential role in criminal handling.

Final Thoughts

Global organizations are changing security paradigms to secure financial systems around the world. Fraudsters continue to intrude as technology expands its horizon but effective document checking services can stop criminals from financial scams. Every industry is heading to digitization. Thus, the risk factor is increasing day by day. An efficacious mechanism is necessary to detect document manipulations before the commission of the crime.

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