The ordeal of managing business activities post the pandemic and with the ratio of financial frauds committed getting constantly increased poses a great deal of tension for businesses and financial entities. For instance, Credit Suisse paid a total of $700 million under the charges of poor AML standards. In 2020, U.S. consumers lost a total of $56 billion due to ID frauds.
Banks and corporate entities are compelled to comply with GDPR and PCI regulations and ensure the authenticity of their future clients. To verify ID online, there are AI-driven solutions using a bunch of different services for different types of verification, which include KYC, KYB, AML, Biometric, ID verification, and OCR services for data extraction and management.
Know Your Customer (KYC) authentication in corporations and financial institutes verify ID online by validating the personally identifiable information (PII) of prospects like name, age, location, social security number, DOB, nationality, and other things, in no time. The system compares the information with data warehoused in classified regulatory directories.
KYB (Know Your Business) Verification
To verify ID online of an entity, the automated solution runs a KYB identity check online, to examine the legal corporate structure. It authenticates the validity of corporate documents like annual reports and licenses, business filings, financial statements, and PII of the UBOs of the company, to ensure that the organization and its strategic partners are not charged or held for contempt of court/law.
AML (Anti Money Laundering) Verification
Along with verifying the originality of the personal credentials of an individual or firm prospect, the organizations also perform checks to verify ID online and get updated on the AML status of the concerned party. With the access of confidential databases and watchlists of intelligence agencies, firms can trace suspicious leads on the person in moments.
At the time of customer onboarding, the solution also provides the option of Ongoing AML so after the firm verifies an ID online of a client, they can get notified about them instantly.
To verify ID online of a person or firm, the AI-powered solution integrated with human verification authenticates forensic and facial data of prospects to make sure that the prospect’s Id isn’t synthetic. The system recognizes age, creed, and other similar appearance traits and verifies them from confidential data sets. Biometric identification online, to verify ID online, a 3D depth analysis is performed to measure the facial depth of the user. It ensures that the uploaded picture is not cropped, edited, or artificially created.
In Video KYC, to verify ID online, a KYC expert interviews the prospect, and the solution generates valuable data from the non-verbal behavior of a person as well. Minor expressions are analyzed of the interviewee that displays either confidence or nervousness, in seconds, that contributes to end results and decisions regarding the association.
OCR (Optical Character Recognition)
To verify ID online, different sorts of businesses and financial institutes have different standards and formats of documents depending upon the nature and jurisdiction, so in order to extract an enormous amount of data and verify ID online from types of documents. The solution uses OCR technology that captures and scans every single piece of information necessary and restructures it in a standard format of the business or financial entity. The OCR technology enables businesses to configure and train different data extraction and verification models with minimal time and effort. It’s a cost-effective and reliable option to verify ID online.
Documents Authentication in Online Verification System
The preliminary procedure prior to customer onboarding or partnership to verify ID online consists of the following steps.
- The prospect uploads images of his/her identity documents such as national ID card, driving license, passport, bank statements, rental agreement, and others. If the concerned prospect is an entity, then the registration number of the company, corporate license, annual performance reports, financial records/ledgers, and others are also required.
- To verify Id online, an AI-based system runs an OCR scan. The system scans the images of ID documents and authenticates provided information of the person seamlessly.
- The prospect uploads a fresh selfie on the interface of the solution. The system does verify ID online by matching the information against data available in confidential digital data facilities, to make sure that the client is authentic and risk-free and generate output in a heartbeat
To verify ID online of a prospect, banks and firms perform different authentication processes to validate the PII and professional history of the individual or firm swiftly by comparing the information from authentic classified regulatory records with accuracy. This eliminates the chances of high non-compliance penalties and repute of the organization getting sabotaged in the respective industry. To verify ID online for risk elimination and making fraud prevention convenient, automated solutions are a compulsion.