In the age of the technological revolution, industries have benefited from innovative digital solutions. However, fraudsters also use various technologies to achieve their malicious goals. This puzzles business owners and regulatory bodies worldwide. In this light, lawmakers have introduced stringent regulations to discourage identity theft and other financial fraud. The implementation of passport verification documents can help professionals deal with the above challenges proactively. The cutting-edge solution not only prevents fraud but also facilitates compliance with KYC & AML regulations. The following section discusses important details regarding the use of record authentication services.
Market Potential of Document Authentication Solutions
According to Markets & Markets research, IDV solutions or passport verification documents market size will reach around 18.6 billion dollars by 2026, showing a CAGR of 16.6% during 2023-2026.
Key factors behind exponential growth are below:
- Rapid digitization
- More fraudulent activities
- Rising applications of digital identities
The widespread application of AI, ML, and automation-based technologies will offer growth opportunities to IDV service providers. Moreover, the introduction of the Bank Secrecy Act, GDPR & PSD2 regulations has also increased the demand for identity validation solutions worldwide. In other words, the significance of passport verification documents services cannot be denied.
Identity Fraud: A Summary
Impersonation is a crime of using the fake credentials of an entity to cause harm or receive free benefits associated with the victim. With the help of innovative technology, fraudsters can use multiple approaches to commit identity theft. If modern-day corporations do not opt for intelligent digital solutions, firms will lose their market credibility & loyalty from customers.
Identity Fraud: The Legal Point of View
From a legal perspective, impersonation is an illicit activity, and the criminal must receive punishment according to federal law. In the late 1990s, the US congress introduced the Identity Theft & Assumption Deterrence Act. According to the legislation, Identity theft is a serious offence, and the law forbids the use of personal credentials without permission to commit a crime or facilitate suspicious activities.
As per the US Department of Justice, impersonation results in imprisonment of more than 10 years, along with seizure of any materials that facilitated the crime.
According to an FTC report, around 2.8 million clients reported experiencing identity theft. The statistics are alarming and point towards the importance of applying passport verification documents services.
Mitigating Fraud with Passport Verification Documents Solutions
International regulatory bodies such as FINMA, FATF and FINTRAC has introduced KYC & AML regulations that all industries in the world must comply with or else face serious repercussions.
According to global standards, corporations must conduct due diligence procedures during the onboarding procedure. This is essential to discourage fraud like ID scams, money laundering & terrorism financing. Previously, it was challenging to follow the latest regulations. However, with the introduction of intelligent digital solutions, modern-day corporations can stick to international standards conveniently.
The support from artificial intelligence & machine learning algorithms facilitates companies to process large amounts of data as well as ensure compliance with know your customer & anti-money laundering guidelines. This way, companies can offer their services on digital platforms and attract genuine customers from worldwide while preventing fraud actively.
Procedure Operating Behind Passport Verification Documents
The AI-driven record authentication technology can easily integrate with websites or applications of digital businesses. The following points discuss the complete process of passport verification documents services:
- The AI-powered software requests the new customer to provide a photo of their ID documents at the time of registration.
- The OCR technology identifies records and captures desired data instantly.
- Cutting-edge technology analyses data and produces high-quality results within a few seconds.
Only in the case of accurate data from customers do clients get access to the platform. New customers must know that validation can only happen on government-issued documents such as ID cards or driving licences. When fraudsters try to submit fake records, the AI-driven software immediately rejects fake documentation and notifies staff members.
Evaluating the Effectiveness of Passport Verification Documents Solutions
The AI-driven record authentication solution can instantly differentiate between fraudulent documentation & genuine papers. The state-of-the-art service produces high-quality results and supports companies to forgo traditional approaches. This way, modern-day corporations can save not only time but also company resources. The cutting-edge solution has the ability to process various types of records from remote clients to ensure global coverage.
Final Thoughts
The application of passport verification documents services can facilitate modern-day industries to streamline onboarding procedures. The AI-driven solution can prevent identity fraud, money laundering & terrorist financing in real time. This way, businesses can also ensure compliance with know your customer & anti-money laundering standards.
The application of GDPR-compliant passport verification documents services secures a competitive advantage in the market. Hence, the state-of-the-art solution can strengthen relationships between customers and organisations.
