Physical Documents Definition

Physical Documents are digital copies of physical/real-world documents uploaded to Synapse for verification (e.g. Driver’s License, Proof of Address, Proof of Income, etc.). Physical documents must be encoded to Base64 before being uploaded to our system.

Examples of physical documents include Government ID, Video Authorization, Proof of Address (e.g. a utility bill), Proof of Income (e.g. a paystub), Proof of Account Ownership (e.g. a bank statement), background check, an SSN card, an EIN document (e.g. Form 147C), a W-9, a W-2, a voided check, Articles of Incorporation, Company Bylaws, or a copy of a relevant legal agreement.

For a full list of physical document types that Synapse verifies, please refer to Physical Document Types.

Physical Document Verification

Synapse’s physical document verification (PDV) system helps ensure that Platforms on-board real, non-fraudulent users by verifying the authenticity of their Physical Documents (i.e. physical identity documents).

Encompassed under PDV are the processes for Identity Verification (IDV) and Employer Identification Number (EIN) document verification. These are two key physical document verification processes regularly handled by Synapse that employ both:

1. Traditional Optical Character Recognition (OCR) to extract text from physical documents, ensure they match relevant Base Document fields, and do not match information for blocked users (e.g. known fraudsters or individuals on various sanctions lists)
2. Advanced image processing (utilizing machine learning models that continually improve over time) to quickly assess the authenticity of user-submitted documents.

These two facets of PDV work independently, and failure to pass either will result in the submitted physical document being marked as invalid. Synapse’s computer vision stack will check for the presence of expected stamps or watermarks, the position and layout of expected text fields, and other essential properties for various document types to verify their authenticity.

Note on Virtual Document Verification

Please note that identity proofing of the actual user-inputted text values for the user’s Base Document (e.g. name or company name, address, age/date of birth, driver’s license number, tax ID number, etc.) will technically go through our virtual document verification process. Virtual Documents (i.e. identity fields) are authenticated by this separate verification process by comparing submitted values to personally identifiable information made available by independent and authoritative sources (e.g. data from credit bureaus or government agencies).

• Virtual Documents are references to existing real-world supporting documents that uniquely identify individuals or businesses that Synapse can validate based on the number or code on the document. These identity fields may be verified directly with government agencies (e.g. the IRS) or with other trusted databases.
  • Examples include Social Security Numbers (SSN), Taxpayer Identification Numbers (TIN), Employer Identification Numbers (EIN), Driver’s License Number, and Passport Number.

Though you can find more information about virtual document verification here, it is important to understand how it differs from physical document verification. Virtual Documents and Physical Documents are two types of supporting documentation (generally referred to as “Sub-Documents” by Synapse), that are processed by distinct branches of our KYC verification system.