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Document Authentication: Preventing Businesses Credit Card Scams

In this updated era, from education to the medical industry everything is digitizing. There is no time for a tedious process, everything is just one click. In the past, travelers had to stand on roads for cabs, but now it can be booked through the mobile app. Document Likewise, banking has also transformed now account holders use credit/debit cards for payments instead of cash. Before that, they have to use ATMs or sign cheques for billing purposes. 

Credit/debit cards will be issued by banks or other financial institutions, which can be used as an alternative to cash. Now Customers feel more easy carrying cards instead of cash because cash can be damaged or stolen. But the money of the customer is still secure if the card is damaged or stolen. The payment data is storing in the database of the issuer, it has the complete financial history of the customer. Like how much balance is left, how much is used where/when it was spent. The financial history helps in managing expenses records.

The use of credit cards is rising for daily transactions. As the usage is increasing, it attracts scammers and criminals to proceed with their activities in it also. According to a report, payment frauds cost 32.39 billion US Dollars around the globe.

Credit Card Scams

The fraudulent activities that will be carried out through credit card payments are known as credit card scams. The scammer has unauthorized access to the information of the victim, i.e. name, DOB, address, account number, etc. They utilize personal information for fraudulent activities and for the purpose of illicit money transfers. 

Chargeback Fraud

It is done when purchasing some producting from e-commerce platforms. A customer receives the product and then claims that he didn’t initiate the transaction. Legitimate chargeback is a shield between fraudsters and genuine customers. 

It was introduced for filtering fake and true requests because they will be cases when customers lost their money due to poor verification methods. When it is proved that the request was fraudulent the merchant has to pay back the particular amount to the customer. But as time passes, customers start claiming fake or fraudulent chargebacks known as chargeback fraud. 

Card-Not-Present Fraud

When something is purchased over a phone call or online through credit cards, CNP can happen. Criminals use stolen card details for transactions in this case. For instance, a scammer has known the card number and CVV number of a customer. Then he makes an online order through that detail. Considering the transaction legitimate, the merchant completes the order but at the end of the day, he came to know that it was fraudulent.

Fake Call Fraud:

Strangers call you as an agent and try to extract your information. Criminals stole all of your credit card information and used it against you. When the call ends they use your information either they utilize individual information to carry out illicit money transfers or make a new account from your information. Some scammers, rather than take your information they ask you to sign up for a service that requires your credit card information. Once they have your credit card information, they utilize it to commit scams.

Advantages of document verification

Digital document verification is a great need to prevent bad actors from forming links with legitimate organizations. But it’s also important that they will find the right balance between getting trusted customers on board and preventing cybercriminals from signing up with forged documents. A manual procedure can make verification tedious and time-consuming, which can slow down the process for customers. Document authentication offers customers convenience and confidence while getting what they need on time.

Banks and other financial institutions have been conducting identity checks for years. But the process is very different when it comes to a digital photo frame, where you cannot validate the originality of the document as easily if it is not physically present. As a result, customers can face friction, lead times can increase dramatically, and businesses will find it difficult to scale up their services.

With a digital document verification solution, companies can identify and verify their users remotely through an online channel. These methods will have now equipped with artificial intelligence models that can verifying the authenticity of documents. This simplified method of verifying user credentials is foolproof because it takes into account biometric information, such as the user’s face ID, to match the photo on the document. This allows businesses to identify and eliminate a wide variety of identity fraud before fraudsters reach their illicit goals.

Classification of various identity fraud

When it comes to customer onboarding procedures, fraudsters can use different types of forged and authenticated documents to trick the verification system. Some of these types of IDs using in identity theft are listed below:

Changed documents

When a cybercriminal gets their hands on someone else’s original ID and changes the ID information to use it for their malicious intent. For example, there will be documents that will be forging, while there are others that are called “blank stolen documents”. In 2008, more than 3,000 blank passports will be physically stolen by identity thieves in the UK.

Illegal Identification Information

These types of documents will no be stolen from anywhere but are creating from scratch with the aim of bypassing authentication protocols. Further categorization of illegal documents will be forged or compromised identity documents. Camouflage and sample papers will also be included in this list.

Misrepresentation of IDs

Often the original and credible documents will be using in digital identity fraud. This can happen when a bad actor steals the document (physical or digital) and uses it to open online accounts or to authenticate on a digital channel. Falsely portraying identity fraud will be taking various forms, for example, documents will be obtained using fraudulent techniques and documents that will fraudulent documents. Without a proper identity verification mechanism, this type of fraud is a major challenge for businesses.

Document verification – a deterrent against identity fraud

Because every identity fraud is different in nature, it must be approached in a different way. For example, the document verification solution can check for format inconsistencies to identify changed and damaged documents. Document registration number, expiration date, and misinterpreted unreadable MRZ codes may reveal altered information.

The visibility of the document can also say a lot about whether it will be reworked or compromised.

Document Authentication – The Solution

Document authentication is used by financial institutions for identity verification of onboarding customers. It has proved a very effective method for curbing fake and stolen identities in financial institutions. It ratifies the authenticity of id documents for verifying a customer’s identity.  Not only that, but it can also be used for verifying credit cards during online dealings. An AI-enabled online software completes the document authentication process.

Here is the process of how credit cards can be verified through document authentication services:


The image of the credit/debit card is capturing in this step. The document verification is done using a mobile phone or PC. Thus, the default camera can be using to capturing the image. But it should not have light exposure and poor pixel quality.


The required information from the image is extracting like card number, CVV number, and owner name. Document authentication incorporates OCR for character recognition. OCR is an extending technology using to extract data (numbers and alphabets) from images. It digitizes the paper information in seconds. 


The authenticity of the credit/card is checking in this step like analyzing holograms, rainbow points, and micro prints. As the software is artificially intelligent, it can point out any forgery attempt on the document.


Since faking, stolen, and forging credit cards are in the marketing, they can increaseing payment fraud. Businesses accepting credit card payments should opt for document verification to secure their channels. Customers will have more trust in businesses using document authentication because now their payment is more secure. Also, it will help in making card transaction channels safer and reliable.


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