A Complete Guide To Verify Documents for Mitigating the Fraudulent Activities

October 1, 2023

Technological advancement has made daily operations more straightforward; it has reduced the tasks of companies. This shift has also made the work of hackers easier, as they can now steal the data of the client account by decoding it; cyber scams are easy compared to in-person robbery. Regulatory authorities are driving new ways to control hackers' activities and preserve the clients' credentials. In 2022, Australia lost 156 million Australian dollars due to cyber scams and 120 million Australian dollars were lost by Victoria. This increasing number has generated the demand to verify documents, as fraudulent activities can be mitigated when the customer's identity is appropriately known.

What is the Verification of a Document?

Documents such as identity cards, bank statements, and residential addresses are verified to check the client's identity. The entire process is done online, and clients do not have to visit the office and bring documents; their verification can be done anywhere in the world; they just have to upload scanned copies.

What type of Papers are Required for Document Authenticity Verification?

The following forms are needed to verify document:

  1. Identity Card
  2. Birth Certificate
  3. Residential Address
  4. Educational Certificate
  5. Employment Record
  6. Tax Return
  7. Bank Statement
  8. Utility Bills

How do Digital Ways to Verify Documents are Different From Conventional Ways?

The traditional techniques were very time-consuming and hectic, as the operator had to perform all tasks, from gathering data to verifying it; the entire process took more than a week. Secondly, manual tasks are prone to error as humans get tired or can unconsciously commit mistakes. The latest means to verify documents are error-free, as artificial intelligence and the latest machine learning tools are used. The entire task is very swift; even uneducated persons can get confirmed by facing the camera, and there is no need to read lengthy user manuals; this process is very reliable and authentic.

How does Document Verification Software Work?

The document verification depends upon the industry type and the papers they are dealing with; here, we will discuss the most common working of a document verification company.

Document Collection

The first to verify document is the required paperwork collection; clients are asked to upload three to four copies of their forms. The customer has to take a snap of the paper and then upload the scanned copy. The system checks whether the customer's data is complete and whether the user has given the required document. For example, the client was asked to upload a copy of their identity card, but he was granted a driver's license. Sometimes, customers only upload some of the documents. They should have given a single side of the paper. Like in the case of ID cards, some clients submit just the front side instead of both. So, such errors are rectified in the document collection phase.

Information Extraction

The second step of document authentication verification is the extraction of needed information. Most companies use optical character recognition (OCR) to extract the required data. The report's templates are compared to the stored material in the database. If both information is matched, the user is authentic, and verification is done. If both templates are different, the client is inaccurate, or the documents proved are incomplete.

Document Validation

Id verification document by ensuring no photoshopped or cropped image is provided; any expired papers are rejected. For example, the user is asked to upload the bank statement for June, and he has uploaded the January statement. So, such papers are abandoned, as they need to contain proper information.

Manual Verification

The clients whose uploaded data is authentic are verified in seconds; those customers that have uploaded false information their registration do not proceed. A red flag is shown for the high-risk clients; sometimes, the companies ask clients to upload more documents, as they do not contain proper data. Business has to decide how much risk they can measure and then build the relationship with their client according to it.


Companies can only onboard their client with verifying documents; this step is crucial. As businesses get complete information about their users, they know about their source of income and the activities in which they are involved. The company can even verify their partners through it, and the future risk rate is mitigated through this verification. Fake identities and spoofing are discouraged when only proven individuals become part of the company. Verify documents to prevent fraudulent activities and money laundering; clients prefer companies that keep their information safe. Companies can even rank them globally if they duly implement document verification software.

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