KYC Documents verification process for customers

KYC verification is an umbrella term covering a large range of verification services depending on the individual business needs of a company. What kind of KYC services are being used by a particular company is also dictated by compliance regulations put forward by the official authorities of the country or region. But no matter what ingredients are being used to perform Know Your customer (KYC) processing cycle, documents verification is always needed to be performed for identity verification services. Identity documents provide the necessary proof to confirm the credentials and user data provided by a particular customer that is performing a KYC verification. So, it is necessary that authentication of provided identity document is ensured in order to use it to validate client information.

 How document verification works in KYC?

There are different methods using which KYC can be performed along with documents verification. Most of the time, a customer is asked to provide necessary information regarding their identity. These include, but are not necessarily limited to, full name, date of birth, city of residence and nationality of a user. Other important credentials might include expiry date of an identity document or unique identity document number. Once all that information is collected from end-user, they are asked to show a particular identity document to prove their provided identity data.

Checks for Documents VerificationKYC Verification

Before user credentials are checked by KYC software with the help of an identity document, the authenticity of that documents is also needed to be verified. Several KYC services provider employ different methods to ensure the veracity of an identity document. Some have even incorporated Artificial intelligence to weed out any attempts of performing KYC and documents verification with the help of doctored or fake identity documents. Several checks are performed to ensure that the identity document being displayed by the user is 100% original and genuine. Some of these checks are:

  • Pattern recognition check

  • 3D depth analysis check

  • Photoshopped element check

  • Hologram and color reflection check

Which documents can be used?

It all depends on the preference shown by a particular company or the prevailing identity documents that are most commonly used in a country for identity verification services. Most of the times following documents are used to ascertain the authenticity of identity documents.

  • Driving Licenses

  • Identity Cards

  • Passports

In case of an e-commerce website or a business that is required to deliver shopped items to a particular customer, verification of provided debit card or credit card becomes necessary. For proof of address verifications, documents like utility bills and bank statements can also be used.

Security of Documents

Several end-users feel reluctant to provide their original identity documents to perform KYC verification. They are afraid of data breaches and data theft of their confidential information. But with GDPR being implemented since Summer 2018, data rights of end-users have attained center stage. KYC services provider and the companies using documents verifications ensure that the identity documents and all corresponding personal information of users is completely secure.