Steps Involved In Document Verification Online and Their Benefits For The Businesses

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The digital shift has increased customers’ attention towards online products and services; this rise in online platform usage has made it essential for companies to verify the identity of their clients. Digital platform use has also enhanced cyber crimes at an unprecedented rate. In March 2023, in the US, more than 45% of the individuals face scam texts, emails and calls daily. Around 10% of people are affected by monthly scams; the ratio of men and women getting scammed is almost similar. Companies must verify their customers on the online portal to discourage fraud, build customer trust, comply with the regulatory framework, and streamline onboarding.

What is Online Document Verification?

Online document verification is done to ensure the authenticity of the submitted documents and verify the individual’s identity. In traditional methods, an identity card or passport is used, but in online systems, many papers are required, such as,

  • Identity Card
  • Passport
  • Driver’s License
  • Tax Bill
  • Utility Bill
  • Educational Documents
  • Employment Documents
  • Employee Letters
  • Bank Statement 

How to verify documents?

Document verification is the same but varies from industry to industry and the documents in use.

  1. Documents Collection

In the first step of the Document check, customers are asked to take two or three pictures of the legal papers and upload the scanned copy. 

  • Once the documents are uploaded, it is ensured that they are according to the company’s requirements.
  • Pictures are clear and visible.
  • Images are of the required document.
  • Pictures contain the necessary information required.
  • The concept is complete or partial.

If the scanned document meets all the criteria mentioned earlier, it moves to the next step. Otherwise, it will be rejected.

  1. Information Extraction

The documents the customers submit are scanned, so the required information is extracted from the image; Optical Character Recognition (OCR) is used for this purpose. Extracted data is then matched against the data entered by the user in the required field; for example, the address mentioned by the customer on the portal is compared with the document of the residential address provided by the client. The verification is accepted and moved to the next step if it is the same. But if information needs to be more accurate, the client has provided information; it is a red flag and can be a sign of fraud.  

  1. Document Validation

After successfully passing through the first two steps, the documents are validated, and the information provided by the user is also matched against the template previously stored in the database of the company. Document verification service sometimes have access to government and private databases for verification purposes.

  1. Manual Verification

Manual documentation is done of the customers with some red flags; this needs to be more secure verification. Clients are usually asked for further documents to check their validity.

Benefits of the Online Document Verification

The following are the benefits of online document verification:

  1. Streamlined Customer Onboarding
  2. Prevent Fraudulent Activities
  3. Comply With AML and KYC Compliance
  4. Enhance Customer Experience
  • Streamlined Customer Onboarding

New customers are easily onboarded in just seconds; there is no need to stand in a queue and wait for the turn. Clients can be verified by presenting their legal papers online. Documents check onboard and monitor the clients to perform their risk assessment.

  • Prevent Fraudulent Activities

Document verification online mitigates the risk of cyber crimes, as fake identities do most scams. When the client’s identity is verified, and it is ensured that the client is accurate, then fraud can be controlled. During authentication, if any suspicious activity is noticed, then the scanner immediately informs the respective authorities. High-risk and low-risk clients are treated accordingly, and relationships are built with them related to their risk rate.

  • Comply With AML and KYC

Businesses must comply with Anti Money Laundering (AML) and Know Your Customer (KYC) regulations. When the companies are bankrupt, the country’s economy also suffers a loss. Therefore, regulatory authorities have made it essential to comply with these regulations; otherwise, businesses will have to face huge losses and bear the penalties.

  • Enhanced Customer Experience

Companies can build the client’s trust as their onboarding is smooth; it saves them time and money. Customer trust is also built because their credentials are in safe hands.


The unprecedented rate of scams has made every industry need to perform document verification online. Whether it is the travel industry or the health sector, the authentication of documents is a crucial step. Companies can only compete globally if they are compliant with the latest rules and regulations. Document verification online promises smooth customer onboarding risk assessment and mitigates the fraudulent activities. Companies enhance their security and keep the clients’ data in safe hands; customers prefer companies that safeguard their credentials.

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