Cybercrime driven by technological advancements is on the rise. In 2023 alone, digital fraud in Indonesia increased by over 40%, with the financial and e-commerce sectors being the most affected.
Indonesian financial institutions faced 2,730 attacks per week in the first half of 2022, far exceeding the global average of 1,083 attacks per week. Fraudsters now use advanced biometric attack methods, making detection and prevention more challenging with traditional security methods.
One essential security layer to add is document verification. This process, typically occurring during application onboarding, ensures that documents like ID cards (KTP) and tax identification numbers (NPWP) are genuine and match official government databases.
Why Ensure Document Authenticity?
Currently, ID card trading is openly visible on various e-commerce platforms. These illicitly obtained ID cards are often used by fraudsters to apply for online loans. Document verification is crucial to ensure that uploaded IDs and other documents during the onboarding process are authentic.
Why Document Verification is Necessary
Document verification during app onboarding is essential for secure identity verification. Banking and fintech applications require authentic identities to prevent potential fraud.
Uploaded documents, such as KTPs, assist in the e-KYC (Electronic Know Your Customer) process, enabling apps to fully identify their prospective users. If the uploaded KTP is fake, modified, or does not match the claimed data, financial companies can reject the application.
Benefits of Document Verification for Businesses
1. Prevent financial losses from fraud and cyberattacks.
2. Reduce or eliminate costs associated with fraud mitigation and recovery.
3. Lower transaction abandonment rates, maintaining user trust.
How Document Verification Works
Document verification ensures that submitted documents are genuine and legitimate. This process involves examining various aspects of the document, such as signatures, stamps, holograms, landmarks, and other information that can verify its authenticity.
VIDA's document verification currently uses AI and computer vision models to ensure the authenticity of ID cards. This process includes image quality evaluation, checking for blurriness, lighting, card orientation, and type to meet necessary standards for further checks. AI examines signs of spoofing to determine if the document has been altered.
How VIDA Document Verification Works
1. Image Quality Checks
Before verifying the document, the system checks the image quality to ensure it meets the necessary requirements for accurate verification. This includes verifying the image size and resolution and checking for issues like blurriness and lighting.
2. Spoof and Forgery Checks
To ensure the document has not been forged, photocopied, or captured previously, VIDA's document verification performs additional checks, such as verifying the uniqueness and authenticity of the document’s intrinsic landmarks and detecting inconsistencies or anomalies indicating tampering or duplication.
3. Landmark Checks
Important documents like KTP have landmarks indicating authenticity. Scores show that the corresponding landmark is intact and visible, suggesting the document's authenticity. Conversely, scores may also indicate potential fraud due to factors like worn-out documents, extreme illumination conditions, and low resolution.
Combining OCR and VIDA Document Verification
OCR (Optical Character Recognition) technology is designed to recognize and extract text from scanned or photographed physical documents. VIDA's OCR technology allows documents containing essential information, such as ID cards, passports, and driving licenses, to be quickly and accurately converted into digital data. This process is efficient, reducing the time needed for manual data entry and minimizing human error.
OCR and VIDA Document Verification provide a synergy of verification solutions, offering security for both companies and users. Here’s how the two technologies are combined:
- Data Capture: The process begins with capturing an image or scanning a physical document. VIDA’s OCR recognizes and extracts text from the document.
- Data Extraction: The extracted data is converted into a digital format.
- Verification: VIDA’s Document Verification validates the document's authenticity and integrity.
- Decision: Based on the verification results, the system determines whether the document is valid. If valid, the document can be used for processing, opening new accounts, or other transactions.
Document verification is a crucial step in ensuring the authenticity and legitimacy of documents across various sectors, especially finance. Utilizing AI technology, VIDA Document Verification is a robust security measure that helps prevent fraud and enhances business operational efficiency.