Fraud and identity theft are becoming real concerns for many customers and businesses. Digitization makes business and customer data accessible not only to you but also to cybercriminals. They can then use such information to steal your identity or your customers’ and use it to commit nefarious activities. Hence, 47% of businesses invest more in fraud detection software and methods to protect themselves and their clients. One such technology is artificial intelligence (AI) and machine learning. Companies can rely on computers to make human-like decisions to make your identity and document verification process more efficient and reliable through AI. Nowadays, technologies such as an ID verification system and document verification software are now powered by AI to make them more effective. With that, here are ways AI can transform your document and identity verification solutions.
1-Allows seamless ID-based transactions
Many industries nowadays provide online services for their customers. Customers can complete transactions digitally and remotely from banking, healthcare, government, and retail. However, there are still risks of fraudulent transactions online. Your business needs a strong, customer-friendly identity verification system to prevent falling into the hands of cybercriminals. AI makes it possible to process, verify, and authenticate your customers’ identity to complete digital transactions. With its capability to collect and analyze data, it can continuously improve how it processes verification and create seamless ID-based transactions for your business. This eliminates in-person or in-store verifications and helps you embrace full digital transformation for your business.
2-Improves fraud detection
As technology advances, fraudsters find more creative ways to create fake documents and steal people’s identities. Your document and identity verification solutions must be able to keep up with them if you want to avoid becoming a victim of fraudulent transactions. An AI identity verification enables you to adapt to these new methods and fill in the gaps in your verification system in the long run. Since it is constantly learning, AI can easily and accurately discern between real and fake IDs or documents compared to non-AI verification solutions. Moreover, AI-powered ones are more flexible. Instead of just sticking to the set of rules programmed into it, it can correct itself along the way. This makes it a more efficient tool for detecting fraudulent transactions.
3-Ensures data integrity and accuracy
Official documents tend to have built-in features to ensure their authenticity. Some types of document verification include encoded MRZ areas, NFC chips, embedded algorithms, or data fields present in specific formats and locations. An AI-powered document verification solution can check whether a document has all the data features that it should have. Likewise, AI ensures that the data in your system has no anomalies. For example, it can ensure that the person who uploaded the document is its authorized owner by matching the photo on the document and using biometric analysis. It can also detect signs of tampering in the document, such as wear and tear in IDs, discrepancies in barcodes, pixel quality, and microprint. And since it never tires, it can minimize and detect errors that human eyes might miss due to fatigue.
4-Scales identity and document verification
The more your business grows, the more customers your document and identity verification solution can accommodate. If it fails to keep up with your business growth, the chances of forgery, fraud, and identity theft would also increase. Using AI and machine learning can help you scale your identity and document verification process. It is faster than humans when it comes to processing more identities. And compared to an ordinary automated document verification software, it can make human-like decisions, making it possible to eliminate human interference in the verification process entirely.
5-Faster turnaround time
Manual document and identity verification can be a slow and tedious process. It requires customers to appear in-store for proofing personally. And even then, processing and authenticating official documents manually is less reliable and accurate than using a document verification app. Through AI, you can process, verify, and authenticate identities faster. This results in a faster turnaround time for your customers in the process. You can even use it to allow passwordless logins and replace them with identity verification methods such as facial recognition and biometrics. This way, your customers no longer have to memorize passwords while still ensuring their accounts remain secured.
Taking verification to the next level
With the acceleration of digital transformation, you must protect your business and customers from fraud and identity theft. Take your document and identity verification solutions to the next level with AI and machine learning. This enables solutions to process information intelligently and automate your verification system. By integrating an AI-powered document and identity verification software into your business applications like payroll software and e-commerce platform, you can create a more secure digital experience—not only for your customers but for your employees.