Online Document Verification Steps Involve and Their Benefits For The Businesses

Customers are now more interested in online goods and services due to the digital transformation, and as more people are using online platforms, it is crucial for businesses to confirm the legitimacy of their customers. The usage of digital platforms has also increased cybercrimes at a never-before-seen rate. In the US, over 45% of people reported receiving scam messages, emails, and calls on a daily basis as of March 2023.

Every month, about 10% of people fall victim to scammers; the proportion of males to women that fall victim to scams is nearly equal. Businesses need to use the web portal to authenticate clients in order to reduce fraud, foster customer confidence, adhere to legal requirements, and expedite the onboarding process.

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,

How to verify documents?

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

  1. Documents Collection

Customers are required to snap two or three images of the legal documents and upload the scanned copy as part of the initial Document Check process. 

Following upload, the papers are checked to make sure they meet the needs of the business.

  • Images are visible and crisp.
  • Pictures are from the necessary file.
  • Images hold the information that is needed.
  • Is the concept whole or incomplete?
  • The scanned document advances to the next stage if it satisfies every requirement listed previously. If not, it will be turned down.
  1. Information Extraction

When consumers submit documents to be scanned, optical character recognition (OCR) is utilized to extract the necessary information from the image. The extracted data is then checked with the information that the user submitted in the mandatory area; for instance, the residential address that the client provides on the paper is compared with the address that the customer indicated on the site.

If the verification is the same, it is accepted and the process advances to the next phase. However, the client has supplied information in case it needs to be more accurate; this raises suspicions and may indicate 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

Online document verification reduces the possibility of cybercrimes because most frauds use fictitious identities. Fraud can be controlled once the client’s identity has been confirmed and their accuracy has been guaranteed. If the scanner detects any suspicious activity during authentication, it notifies the appropriate authorities right away. Clients who pose a high or low risk are handled appropriately, and connections are developed with them based on their respective risk profiles.

  • Comply With AML and KYC

Regulations pertaining to Know Your Customer (KYC) and anti-money laundering (AML) must be followed by businesses. When corporations go bankrupt, the economy of the nation also loses out. Because of this, regulatory bodies have declared that firms must abide by these rules or risk suffering severe losses and paying fines.

  • 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.


Due to the historically high occurrence of scams, online document verification is now required in every industry. Document authentication is an essential first step in both the travel and health sectors. Businesses may only compete on a global scale if they adhere to the most recent laws and regulations.

Online document verification reduces fraudulent activity and ensures a seamless customer onboarding process through risk assessment. Businesses strengthen their security and protect their customers’ data; clients choose businesses that protect their login information.