Document Checks – An Efficient Way to Eliminate Identity Fraud

When companies hire new candidates using inadequate document screening, it puts their finance and security at risk. Moreover, the candidates can access the company’s finance and security sections. A company should not trust a new candidate easily as they might damage its reputation and leak confidential data. Therefore, document checks are a must to implement the limitations on documents related to identities that firms are applying for in the hiring process. 

Documents check – An Overview

Document and identity fraud are among the most significant issues in the world. Most people use fake identities and documents to move from their countries and get their dream jobs. This practice also allows them to hide from law institutions.

Furthermore, document fraud includes 

  • Drug and Human Trafficking
  • Terrorist Funding
  • Bank Fraud

According to a survey, the United States of America had to face a loss of USD 9.62 billion in 2019. Thus, businesses must do proper planning to deal with these problems. Though the implementation of technology helps catch fraud and other suspicious activities, it also allows criminals to generate new methods of crime. As a result, many government and private corporations face billions of dollars in loss, data theft, and bad reputation every year. The introduction of different laws and methods prevents document fraud and theft in multiple countries and organizations, regardless of their size. Moreover, AI and machine learning implementation further enhances these methods. Hence, online document verification has helped many companies lower fraud chances.

What are digital Document Checks?

Digital document checks are defined as the digital inspection and verification of documents remotely. Traditional identification methods include physical presence, passports, utility bills, and driver’s licenses. ID is required. These typical procedures are time-consuming, inaccurate, expensive, and slow for customers and service providers. In contrast, the following areas saw better results from digital document checks than from manual document check techniques: 

  • Customer Experience
  • Fraud Detection
  • Consistency
  • Accuracy
  • Availability
  • Time
  • Cost
  • Document tamper detection
  • Scalability

Know Your Customer (KYC) Procedures

Know Your Customer or KYC refers to the validation of a customer’s identity and the determination of the fraud risks they may face by financial institutions or other organizations. By requiring KYC, businesses can stop financial fraud, smuggling, and other crimes like drug and human trafficking. The following steps are a part of the KYC:

  1. Document Verification,

A document authentication service involves checking the address and identity of the customer using official documents like ID cards, utility bills, or passports. Financial institutions must identify or verify documents as a requirement of global regulators like FATF, reducing the likelihood of fraud.

  1. ID card verification

The system stores the customer’s personal information during this process. The system will then upload a copy of the ID card for comparison with the data already on file. If the information on the ID card matches what is already on file, the customer is objective; otherwise, they are a fraud.

  1. Face verification

With the help of facial features, the face verification system identifies the customers. The system compares the ID card’s image to the user’s actual face. The system recognizes a face as accurate if its features match those on the ID card; otherwise, it acknowledges it as fraudulent. 

Document Verification Process

The report confirmation process makes it conceivable to confirm credible documentation with careful ID checks. Check in view of man-made consciousness assists monetary establishments with forestalling deceitful personalities and archives. Its exactness is high to such an extent that it can catch the minor attempt of fabrication in any pixel of an ID record. The web-based report checking technique checks the miniature prints, 3D images, MRZ code, and text styles. Clients can basically confirm themselves by transferring the ID report picture like travel papers or ID cards from their cell phones or workstations.

Why do Financial Institutions Apply Document Checks?

The majority of fraudulent activities occur in financial organizations, especially banks. Moreover, banks use online document verification that eliminates fraud risk. Everyone must now present original ID documentation while opening a bank account. 

Considering that a bank account was necessary for all illegal transactions to continue. Different document authentication procedures are essential when opening a new account. The checking methods of banking sectors or other financial institutions require 

  • ID cards
  • Biometrics
  • Utility Bills
  • Passport


Documents are crucial for verifying a person’s identity. Fraud activists always seek to steal someone’s identity to achieve their nefarious goals. Businesses verify various documents to prevent the identity theft of others. Document checks verify that the person is who they are claiming to be. 

For this purpose, the system goes through multiple procedures, such as ID verification, facial recognition, and document verification. Hence online document checking is a must to protect customers from fraud.