Document Verification in Banks- A Process to Combat Identity Theft

Document Verification

As the world is going ahead, the rate of crime is also increasing which becomes the headlines for the current era. All businesses have fear of theft regarding the personal data of their clients. This fear is in the bank institutions which are covering whole personal data of clients, including their regular money transactions and the activities of the account. The only aim of the fraudster is to steal victims’ sensitive information in order to create fake documents to bypass the systems for their own benefit. To prevent such frauds, extensive work is going on for the establishment of new technologies like document verification solutions for banks, especially to save the client’s personal data and their money.

What are Document Frauds?

No doubt in the past there were many cases regarding document scams but in present days the cases are more as compared to the past because of the covid pandemic. As it is seen that all business is functioning digitally while sitting at home. This is becoming a global concern because fraudulent identity documents are being used for illicit acts. All these breaches take place while onboarding a client digitally which increases the risk of fraud. But the companies have introduced document verification services that allow verifying the information of end-users on time through an online portal. With such precautionary measures, the reports of fake identity cases can be reduced specifically. 

AI-Technology in E – Verify Document Solutions

The accuracy and authentication in document verification can be seen through the integration of AI. This AI-based solution is used by banks especially those who are covering detailed data of their customers. Traditionally bank institutions just need identity documents of clients while onboarding them, in which they match the photo of the person with the face of the end-user.  But by the use of AI, the process of authentication is more accurate and detailed and detects the originality of the data. This technology is fruitful for bank sectors in preventing scams. Sometimes, financial institutions show negligence in the security measures of their clients. This leads those institutions towards drastic losses and usually ends in money laundering cases. For such reasons, online document verification portals are implemented by organizations to know the genuineness of the customers. 

How Do Banks Verify Documents? 

There are different steps that can do document verification in banks by using machine learning algorithms, these KYC document checks include;

Authentication of KYC Documents 

The process of document for identity proof is checked in detail to verify the authenticity and originality of the documents. It confirms whether the submitted data is real or not.


AI algorithms are used for the detection of edited and formatted documents. It extracts out the fake documents that are photoshopped or cropped to show them real.

MRZ Code Identification

Documents that are issued by the government have MRZ (machine readable zone) code on them that is required from the customer. If anybody makes changes and decodes this code it is noticed by AI. So, in this process, the MRZ code is identified to verify the customer.

Attestation of Document

When the technology was not much advanced and the attestation of documents was done manually it has chances of errors that is why it is not preferred. Moreover, the small details like edited and altered edges are not detectable by manual checking. But now, with the help of machine learning algorithms, the minor details are checked without any errors and this provides accurate outcomes.

Checking of Rainbow Patterns and Hologram

Documents have rainbow patterns and holograms on them, that is according to the specific country and region. In this procedure, AI helps to find out real documents by detecting these holograms and rainbow patterns on them which, as a result, rejects the fake documents and accepts the authentic ones. 

Document verification is an easy way of identification in these institutions by only installing APIs of document identification solutions on their digital platforms. This technology takes help from OCR technology in scanning and detecting data from documents and converting it into digital format. The documents which are not matched with the provided information are rejected. In this way, the process of onboarding the end-users is secured deliberately.


Concluding the discussion, it is assumed that document verification in banks and all other institutions is mandatory for the prevention of scam cases and money laundering. It provides proper security checks to all online businesses in real-time.

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