Introduction

Identity theft is a growing business for governments, consumers, and businesses. The Research and Strategy institute, Javelin Strategy, discovered that identity fraud resulted in losses of up to $56 billion in 2020 solitary.  While identity fraud scams have been reducing every year, the severity of these incidents is on the rise and shows no signs of slowing down.

In fact, cybercriminals are finding new ways to fool businesses through identity fraud. A new form of identity theft, known every bit synthetic ID fraud is growing rapidly in the Usa. Mckinsey considers synthetic ID fraud equally the fastest growing financial cybercrime in the United states of america, taking over credit bill of fare frauds.

Even on a personal level, people suffer from identity theft indiscriminately. But in 2018, as many equally 60 million Americans became victims of identity theft. Most scams are carried out online, making it difficult to rails down cybercriminals.

Online services including brokerages, banks, crypto, casinos, and even businesses offering age-restricted products must verify IDs online. Since businesses demand to perform customer onboarding remotely, scammers exploit this to get away to identity theft and a range of other fiscal frauds.

The Anti-Money Laundering (AML) regulation enforces these businesses, particularly financial services to perform ID verification accurately, levying them with large fines if they fail to do so. Online ID verification offers a reliable fashion to fight fraud and limit unauthorized access, helping businesses curb the rising tide of financial fraud and identity theft.

Online ID verification helps us verify IDs over the internet. Therefore, businesses no longer need in-branch, in-store, in-person verification, and they can hands shift the unabridged procedure online. Information technology allows businesses to safely perform client onboarding online. With online ID verification, businesses are not only rubber from financial and identity fraud, but can also meet statutory obligations, such as Counter-Terrorism Financing and AML.

When does ID document verification come into play?

Regulations are becoming increasingly stringent to meet the rising need for security and protection in financial services confronting identity fraud. Financial and other services struggle to curb the rising tide of fraud. Therefore, to sympathize why nosotros need document verification, we must empathise the regulations that pushed businesses to online ID verification: AML and KYC.

Anti-Money Laundering (AML) and Know Your Customer (KYC) are compliance procedures enforced by police. They assistance companies mitigate risks of banks and fiscal services to reduce the possibility of financial crimes.

The procedure involves numerous monitoring, verification, and cross-checking procedures. Policies to prevent fraud must exist free of vulnerabilities to preclude cybercriminals from slipping through. If businesses fail to meet recommendations from both regulating bodies, they are subjected to heavy fines for non-compliance.

Although both AML and KYC are used interchangeably, they are unlike terms. AML is an entire framework for preventing malicious financial practices, whereas KYC is a set of procedures specifically related to identity and document verification.

Businesses demand online ID verification to meet regulations gear up by the KYC procedure. For regulated businesses, online ID verification is a mandatory office of the customer onboarding processes. On the other hand, not-regulated businesses (i.e., selling historic period-restricted products) must implement online ID verification for remote customer onboarding, in order to verify customers' age and continue under-aged users abroad.

Industries that rely on Document Verification

To give you context, customers must provide copies of their passports, photograph ID as well every bit social security numbers each time they open a new account in an online bank, casino, or brokerage firm.

In a multi-stage functioning, KYC procedures likewise involve customers and directly fiscal services to collect and analyze customers' 'Personally Identifiable Information' (PII) to curb malpractices. Experts phone call this stage Customer Identification Program (CIP).

Businesses must collect information such as their total name, date of birth, and address. Besides that, customers must submit their government-issued ID to verify that it's valid, authentic and belongs to them. In general, customers are asked to provide either ID card, passport, commuter'southward license or residence permit.

What Are the Challenges of Transmission ID Verification?

Organizations consistently rely on manual document verification to secure client information and meet regulations set by AML. Even so, performing ID verification manually hurts in more ways than it helps.

Vulnerability and Loss of Reputation

Several branch employees and tellers were defenseless using personally identifiable information for fraud schemes later on they collected the data for manual data verification. Prosecutors have discovered that they have to deal with i example every month where tellers were involved .

When customers find that people they trust are using their information for fraudulent schemes, it erodes their trust. Consequently, if this happens at your company, not only will it break your customer's trust, simply it will besides plummet your business's reputation, hurting your business in several ways including losing customers in all directions.

Challenges in Entering New Markets

Financial services breaking into new markets will discover an entirely different set of challenges. They must traverse unchartered territory and go to significant lengths to nurture a human relationship of trust and conviction amongst new customers.

Therefore, these businesses must exist quick on their feet and notice ways to accelerate market capture. For this, they must expedite fraud prevention through ID verification. Unless you move speedily and capture the market place, someone else volition take your place and replace yous. Still, manual ID verification tin can become a significant hurdle in this.

Businesses need an ID verification procedure that has the potential to grow fast. A transmission process creates a bottleneck that blocks your efforts to bring in as many customers as possible.

In these situations, a business organization is trapped either way. If it loosens restrictions or expedites the manual verification, it will increase the number of errors or let malicious users inside their network, incurring the wrath of regulating government and piling up back-breaking penalties on your business.

You can temporarily alleviate this result by hiring additional staff, just the issue volition keep to haunt you as long equally y'all persist with manual ID verification.

Extra Toll

Although you take to pay for online ID verification software, it'southward negligible in comparison with the price of maintaining a fully human workforce. Human being resource are one of the highest costs for any business.

You spend a ton of time, coin, and resources on hiring and grooming them, pay monthly wages and benefits, too as, annual or biannual incentives to retain them. With all this, you tin't guarantee that they will stay with your company and assist revenue grow in the coming years.

Therefore, if your company uses manual verification, you must consider your employees every bit a direct price. Although it's impossible to replace your human staff because of their value within your arrangement, you can employ them much more effectively when they are not trapped in strenuous manual processes.

This is peculiarly true for employees highly trained in compliance. Using these people in running verification checks doesn't do justice to their talent, position, or skills. Instead of wasting their time and efforts on dull tasks like manual verification, you can utilize their core competencies in other valuable tasks.

Adopting an online ID verification software will help you automate ID verification and customer onboarding. Additionally, since your staff is only doing what they do best, information technology boosts their morale and improves their job satisfaction.

Slow Processing

Concern managers recognize the importance of moving ahead with full speed. You need a organization that saves you time in several processes, helping you outmaneuver your competition. However, manual ID verification is the opposite of what you lot demand to grow.

Manual ID verification is known to be extremely deadening and deadening. Your staff needs to go through every slice of the document themselves and verify them 1 by one. Humans naturally suck at multi-tasking. Instead of helping us cover more piece of work, it kills productivity .

Therefore, when your staff needs to shuffle between several documents to verify if they're genuine, it drastically affects their productivity. The stress and burden of multi-tasking sap their free energy, pushing them in doing less day past day. This unnecessary waste of time and human effort hurts your business and makes transmission ID verification take fifty-fifty longer.

Cost of Human Error

It doesn't take a genius to understand that overburdening your staff volition strength them to brand mistakes. Even if you're a great manager and carve up the load efficiently, you can never avert man error.

We, humans, are not robots. Nosotros cannot do one task a chiliad times and exercise it the aforementioned way every time. It's hard for us to maintain the same level of efficiency over time and we are prone to making mistakes once every at present and and so.

In contrast, automatic tools tin work at tasks relentlessly, without making mistakes or being exhausted. When we verify information manually, nosotros must enter information manually, creating room for errors in our system.

These errors result in imitation rejections during verification checks, forcing your staff to reenter data. Even worse, your staff can decline legitimate customer accounts, increasing your costs, leading to a loss of revenue, and leaving a stinging client experience.

Alternatively, a potential coin launderer can creep into your organisation, creating mysterious anomalies in audit trails. These seemingly minor occurrences can cause significant harm to your company, especially in terms of reputation.

An Obstacle to Global Outreach

Online businesses often sell products and services to a global audience. Every bit a result, they must enroll customers from all corners of the globe. A global outreach takes business growth to a whole new level.

All the same, it also presents businesses with a unique set of challenges. Businesses must deal with multiple types of ID documents of customers belonging to several different countries. Hither, a manual ID verification system is not simply insufficient but an obstacle to expanding your business concern globally.

To maintain an international level of standard, you lot need a reliable document verification service that enables you to verify thousands of ID certificate types. You lot must exist able to verify documents online, in real-time, and take global coverage, equally well. The solution must support languages, scripts, and character recognition from multiple ID Document types.

You must look for ID verification software that makes it easier to scale your service based on your needs. Whether you need to verify 1000 ID documents every month or 10000, the solution must meet your requirements seamlessly.

Sometimes, businesses need experts specialized in ID document processing to catch synthetic ID fraud. For this, they must prefer a hybrid automated-manual approach to benefit from the expertise of specialists. Your ID verification tool not just needs to automate dull tasks but too provide support in manual help. Moreover, businesses need flexible integration options, to ensure greater functionality and improve operation.

Document Verification Procedure – How GetID Verifies ID Documents online

Document verification end-user flow

Traditionally, online financial services must verify user IDs online through device IPs, phone numbers, or credit database await-ups. However, cybercriminals can exploit these measures and use fake IDs to carry out fraudulent activities. This constant uncertainty is distressful for businesses, as they must spend a significant amount of time, endeavor, and money verifying data, giving them less fourth dimension to raise user feel or provide better services to customers.

GetID uses a sophisticated organisation of cutting-edge technologies to ensure y'all can verify ID documents online seamlessly. It allows yous to expedite customer onboarding and create trusted user IDs, reducing operational costs, and driving greater revenue. Using Biometric Verification, it enables your business organisation to tie a user's business relationship to his or her real ID.

With an intuitive interface and seamless workflow, GetID gives your customers an first-class user feel and eliminates bottlenecks that cause drop-offs.

Document Verification technical process flow

Here are the steps nosotros have to identify malicious users and accelerate customer onboarding:

  • Information Capture

Data capture is a cutting-border procedure that replaces transmission information entry with the aid of avant-garde AI and OCR engineering science. GetID's online interface allows you to take a photograph through the awarding's web or native SDK. Once you do that, you tin upload it and we will receive it through our API.

  • Pre-Processing

Before sending your ID photo for further processing, the organisation will ensure that your ID certificate is in the correct country. It will check borders, colour, and effulgence while making corrections simultaneously.

  • Classification

Here is where it gets tricky. In this step, our solution employs  AI to detect the type of your ID document, the revision, issuing country also. In addition, the system checks the document photo quality, if it has any blurs, glares or night spots. The arrangement would bank check if the image of a document is a existent document and not a scan, photo of printed out ID document, screenshot or a photo of a screen.

  • Match Document with the official id document template

Based on the system's analysis, the organisation retrieves the record of like documents saved in the database of official document templates. Based on that, information technology will determine several things, such as:

  • Document size
  • Side aspect ratio
  • Relevant data points
  • Whether you must submit the backside photo of the document
  • The data saved in the document, coordinates, boundaries

With these rules, our solution will analyze the attributes mentioned above and compare the client's ID document with the official sample.

  • Data Extraction

Using predefined rules from the ID document template, our solution extracts data points from input fields, barcodes, portrait, and MRZ as long as the scanned ID document template contains this information. This allows the application to extract and procedure the visual and MRZ zone simultaneously based on the certificate's type.

At the same time, the system will analyze the document based on the overall checksum, one/2/3 lines, the number of characters, and overall MRZ checksum, the checksum of the date of birth, the checksum of the document number (if there is i), or checksum of the expiry date (if at that place is one) and others. This is where the organisation uses advanced OCR to extract text from your photo with pinpoint accurateness.

  • Decoding MRZ

Following that, nosotros decode MRZ into values based on the rules we feed (more on MRZ later).

  • Information Validation

The system verifies the validity of decoded values ​​past comparing them with the information extracted from your client's ID document.

  • Search for Human Portrait Photo

The system searches for homo portrait photos. This step becomes useful afterwards when the system must compare the photo with the selfie your client provides. Using the imposter detection function, nosotros can place if the portrait is modified and contains the face of another person.

  • Verify Security Features

The system looks for additional security features it has extracted from the certificate, such equally ghost prototype, patterns, fonts, holograms, signature, photo, QR code (if there is one), barcode (if there is one).

  • Cheque Document Decease Appointment

The organization checks the document's date of decease.

  • Verify User Profile

Using the document data, the system checks the user's contour and highlights whatsoever differences it finds.

  • Compare Selfie Photo

The system asks your clients for selfie photos forth with the ID certificate verification. The system will then compare the selfie photo with the portrait on the document and verify if both pictures are from the same person or not.

Using computer vision, it will analyze photos and calculate the estimated percentage of similarity. You can fix up thresholds based on your requirements, rejecting or accepting photos if they fail to match.

  • Liveness Detection

Add together another level of security to prevent fraud. Liveness Detection ensures that the users are "alive" by asking them to complete a job on camera (smile, blinking or turning their head). This prevents users from fraudulently submitting static printed out portraits, pre-recorded videos, 3D masks and using other assault vectors.

  • Match With AML Watchlists

The system analyzes user data and matches the data with AML Watchlists, helping y'all identify cases labeled for PEPs sanctions and Adverse media. You can as well perform complete or partial matches for both phonetically like names or similarly spelled names. Watch our AML information structure :

An image of AML Watchlists results

  • Checking Controversial Cases

When your system detects controversial cases, they are highlighted and sent for further certificate verification. The system will perform further ID certificate checks and biometric face-matching investigation through manual verification of specially trained staff. Our qualified ID verification staff is trained by ex-Interpol and edge control experts.

What is MRZ?

Image of document's machine readable zone

Machine Readable Travel Documents issued in accordance with the ICAO Document 9303 include Machine Readable Zone (MRZ). It is a specific surface area of the ID document that holds a person's information in encoded class.

MRZ is most used in travel documents such as passports and is an excellent manner to conceal confidential data. Information technology reduces the processing time of travel documents by making it easier for software to inspect travel documents.

In nigh cases, MRZ is printed in two to three lines in an OCR type B font. Documents containing MRZ codes are known every bit Machine Readable documents because only a machine tin read the information saved in the document.

It uses "checksums" to verify MRZ codes. Checksums are mathematical information points created to identify errors and to check if the information has been modified. By analyzing the MRZ code, an intelligent ID verification solution can detect forged documents.

MRZ lawmaking verification plays a fundamental role in eliminating the chances of forgery and prevents unauthorized amending in the IDs. Therefore, you can advance the ID verification procedure easily.

How the Machine Reads MRZ Code?

By using a special reading device, the system detects MRZ lawmaking and extracts information encrypted inside. The system majorly relies on OCR for extracting data from the documents. Once OCR scans the document, machine-readable data is stored in the electronic format.

Later that, the organisation parses the information saved on the document based on the data fields listed on the document. OCR likewise helps to summate the checksum of extracted data from the ID card. Thereafter, the organisation compares the calculated checksum with the original checksum of the carte'south data to ensure that it'southward not forged. Yous can too extract this information from another device to investigate further.

What is OCR?

An image of OCR results

Optical Character Recognition (OCR) is a automobile learning technique that detects and extracts text inside scanned documents, images, and fifty-fifty photos. Intelligent OCR solutions can fifty-fifty help you classify documents after analyzing them. It is so powerful that it can catechumen text from images into machine-readable text whether it is printed, typed, or handwritten.

Needless to say, OCR plays a huge part in the identity and document verification industry due to its information extraction abilities. It is the golden standard for ID verification and is essential for accelerating ID verification.

Developers incorporate OCR to extract personal information similar an ID carte du jour number, date of nativity, name, address, gender, and other client details within seconds, automatically reducing processing time, as a result. Moreover, information technology needs niggling information from end-users, making information technology ideal for systems that solely rely on automation and demand manual intervention.

Advantages of Online ID Certificate Verification

Online ID document verification offers several advantages. To start off, information technology allows businesses to analyze documents almost instantly, accelerating customer onboarding significantly. By detecting fraudulent IDs accurately, it prevents ID theft and fraud, saving businesses from financial and reputational losses.

Since the solution is device contained, you can use it across several platforms, enabling business to integrate it easily with their business concern processes. Additionally, online ID document verification comes with a customizable flow, giving businesses boosted services such as a hybrid approach of automated and manual ID verification.

Benefits of using GetID solution

Transmission ID verification has several disadvantages. Adopting an online ID verification software will help y'all automate ID verification and client onboarding. The solution non only provides you a faster plough-effectually merely also more accurate results, out-performing manual ID verification by a huge margin.

Global Coverage

GetID allows y'all to maintain an international level of standard, by helping y'all verify thousands of ID document types. You lot must be able to verify documents online and enjoy a solution that supports languages, scripts, and character recognition from multiple ID Document types.

The solution supports more than than 7000+ types of documents with access to more than than 223+ territories and countries. GetID verifies ID documents online, including passports, ID cards, commuter'southward licenses, and residence permits, helping y'all and your team build a truly global presence.

Scalability

Verifying ID documents manually becomes increasingly complex over time. You must invest significant fourth dimension, money, and effort in training your squad and paying for their operational costs.

Nevertheless, as your customer base grows, then does the burden on your squad. The increasing load can quickly overwhelm them. This is why it's wiser to invest in an intelligent ID verification solution early to benefit from its ability in earnest. You tin can scale your services on demand and reap benefits in the long-term.

Accurate ID Verification

Extracting data from ID documents is important. To automate ID document verification finer, you need a solution that categorizes the extracted data and transfers it to relevant data fields. ID documents have multiple fields containing valuable information. Therefore, detecting the file type and verifying it accurately is not easy.

Yous need a system that helps you reliably transfer data from digital and tangible to their ID document verification system without any oversight or transmission intervention.

An ID document verification solution like GetID helps y'all determine the type of document precisely. Our solution processes and analyzes files from different formats and helps you avoid compliance issues and penalties effectively. Using cut-edge technologies similar OCR GetID allows you lot to verify documents accurately.

Cloud Admission

Similarly, cloud access is also a useful feature in automated ID document verification. Deject-based document verification solution lets businesses run concern operations from anywhere and add multiple users with ease.

Instead of being restricted to an on-premise solution, cloud access lets you make intelligent ID verification features easily accessible from anywhere, anytime. Therefore, remote workers tin hands use these features to keep your business afloat during social restrictions.

Integration Options

Unless your ID verification solution has support for export and integration of documents and data, your company can become limited due to the lack of integration code. GetID offers yous pre-congenital export connectors allowing you lot to link with common destination systems and integrate with unsupported systems.

We provide users with various setup and integration options, including:

iOS and Android SDKs

Our solution is bachelor on both Android and iOS engineering stacks, allowing businesses to leverage highly customizable SDKs and provide their customers a frictionless onboarding feel on mobile.

Web SDK

GetID's web SDKs allow you to integrate onboarding on your website through its robust web SDKs.

Cloud-Hosted Web-Folio

Use webhooks and Admin Panel to receive results and share links of client verification.

API

Collect needed information for identity verification and KYC and receive check results via API.

Advantages of GetID solution

Excellent User Feel

The system assists your customers as they take photos of their ID documents. If the photo is blurry in some way so the system takes its time and simply clicks when the photograph quality is the best. This feature allows y'all to extract data faster and provide users with a greater user experience. The onboarding process is not only smoother just as well produces higher conversion rates.

Consistency

Contrary to popular belief, ID documents aren't created with the level of consistency many people expect. Differences in materials, printing alignment, certificate quality, and color variance all affect the verification process.

ID cards issued by the government can differ from each other with each batch as governments assign orders to unlike manufacturers. This is why you need an intelligent solution that helps you incorporate risk tolerance verification levels assuasive you to verify ID documents accurately without generating needless faux positives.

Customizable Workflows

Every business has different dynamics and companies need to leverage a range of dissimilar procedures for customer onboarding and ID verification. This is why GetID offers its users customizable workflows. Our squad of experts can aid you build customized workflows, enabling you lot to perform frictionless identity verification co-ordinate to your business needs.

Faster Compliance Resolution and Onboarding

Compliance issues can impairment your visitor's reputation and hurt it financially. Strict regulations similar the AML impose huge fines on businesses that fail compliance. Our solution gives your compliance team a detailed dashboard where they can rails verification existent-time and accelerate ID verification significantly. As a consequence, your concern enjoys a faster workflow, allowing y'all to serve customers seamlessly and bulldoze greater acquirement.

Decision

As scammers notice new ways to exploit vulnerabilities in financial services, businesses must step in to meet their challenges. GetID provides its users with the perfect set up of tools to combat identity fraud and other fiscal crimes. Automatic KYC solutions offered by GetID.ee can help your business minimize delays, can cut costs, and avoid human errors due to manual ID verification. With our solution, you can better manage compliance requirements from AML and automate KYC processes without a sweat.