Yes, they are verifying the card is unaltered, to the best of their ability. They are also confirming it matches the listing description. So if the card is listed as NM-MT+ and it's trimmed or lower grade and CSG notices it, they'll reject the sale. I've seen it happen as posted on a couple of different message boards.
Some people who bought would still like the card, even if CSG thinks it's only NM. Some people would like rare cards even if they're altered, depending on what they paid. But in order to streamline their process, they don't contact the buyer with their findings, just cancel the sale unilaterally.
But then, no authenticator is perfect, and some still get "authenticated" even though the year of the card in the listing is 15 years away from accurate.
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PWCC: The Fish Stinks From the Head
PSA: Regularly Get Cheated
BGS: Can't detect trimming on modern
SGC: Closed auto authentication business
JSA: Approved same T206 Autos before SGC
Oh, what a difference a year makes.
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