Stopping fake documents and identity fraud
When a customer disputes a legitimate charge, the evidence that wins is a timestamped record that you verified who they were and what they agreed to.
Money-mule networks recruit real people with real accounts. Verification data feeds the link analysis that spots the network.
Every identity check passes, and the customer still defaults on purpose or disputes a legitimate charge. Verification is necessary but not sufficient.
Verification stops fake people getting in. It does very little against a real account being stolen. Know which problem each control solves.
A synthetic identity stitches real and fake data into a person who does not exist. Verifying each element against its source pulls the stitching apart.
A convincing forged PAN card or RC will pass a human eyeball. It will not pass a lookup against the issuing database. That is the whole point.