In my previous company, we provided a tenant screening solution to real estate agents. Not surprisingly, we detected fake documents daily thanks to our automated document checks. One of the things that surprised me the most was some real estate agents would verify an ID document, and then call it a day. I never understood this because most of the fraud situations (e.g. using a rental apartment to grow cannabis or host prostitutes) started with a perfectly valid ID document. Perhaps a stolen one or that of a straw man, or katvanger as we call them in Dutch.
According to Inscribe, only 12% of manipulated documents contain changes to the identity of the person only. The rest contain alterations of other things as well, such as a monthly income, account balance or a employer. Knowing this, why are there businesses that place so much focus on just verifying identities and that the ID documents is genuine? While ID checks remain an important part of the verification process, they should be just one component of a more comprehensive approach. This article explores why checking multiple documents is crucial and how this holistic method can significantly enhance fraud prevention efforts.
The limitations of ID-only verification
Checking that a passport or ID card is authentic without having it in your hands is tricky. Yet, it has long been considered the gold standard for customer onboarding. However, they come with several limitations:
- Stolen authentic documents: Genuine IDs can be stolen and used by imposters, making them difficult to detect through standard verification processes. Yes, there are databases of stolen ID documents, but they are not truly effective or up to date.
- Sophisticated forgeries: High-quality fake IDs are increasingly available, with some forgeries being nearly indistinguishable from genuine documents.
- Digital manipulation: Advanced editing software allows fraudsters to alter digital copies of ID documents convincingly. You can get templates online easily that can be modified with Adobe Illustrator and look just like the real thing.
- Inconsistent security features: Different countries have varying levels of security features in their ID documents, making uniform verification challenging. Have you ever seen a Romanian ID card? It looks like a library card with an empty white back.
Aren’t there technological solutions for this?
While technological advancements have improved ID verification, they are not foolproof:
- NFC chip limitations: Not all ID documents contain NFC chips. For instance, Indian passports lack this feature, creating a gap in verification capabilities. As long as you have a backdoor, people may use it. And a fraudster can always say “My NFC reader on my smartphone does not work” to skip the check.
- Biometric matching constraints: Biometric verification by a selfie can be compromised by deepfakes or high-quality photos.
- Digital identity wallets: Solutions like eIDAS in Europe are promising but limited to EU citizens, leaving a significant portion of the global population uncovered.
The blind spot in document verification
When you search for “fake documents” online, you’ll find an overwhelming focus on ID documents. This narrow perspective creates a significant blind spot in fraud prevention strategies. The team behind VerifyPDF recognized this gap and saw the need for something that goes beyond mere ID verification.
While verifying identity documents is crucial, it’s just the tip of the iceberg. Fraudsters are increasingly sophisticated, manipulating a wide range of documents beyond IDs. This is where comprehensive automated document checks come into play.
The case for automated document checks
To address these challenges, a more holistic approach to document verification is necessary. This involves examining a range of documents beyond just IDs. Here’s why this approach with automated document checks is more effective:
- Cross-verification: By checking multiple documents, inconsistencies that might not be apparent in a single document can be identified.
- Broader context: Additional documents provide a more comprehensive picture of an individual’s identity and circumstances.
- Harder to forge consistently: While creating a single fake document might be feasible, forging an entire set of consistent documents is significantly more challenging.
- Reveals patterns: Multiple documents can reveal patterns or anomalies that might indicate fraudulent activity.
Implementing automated document checks
For processes like tenant screening, car lease contracts or consumer loans, a more pragmatic approach should include verification of proof of income and proof of employment documents if applicable. Adopting a holistic approach to document verification offers several advantages:
- Increased Accuracy: Multiple data points lead to more accurate assessments.
- Reduced fraud: Automated document checks make it harder for fraudsters to succeed.
- Better risk assessment: A fuller picture allows for more informed decision-making.
- Compliance: Many industries require thorough verification to meet regulatory standards.
Moreover, automated document checks can adapt to evolving fraud techniques more quickly than manual processes. As fraudsters develop new methods, the AI-driven systems can be updated to recognize these new patterns, ensuring ongoing protection.
Conclusion: Don’t stop at the ID, go further
While ID checks remain an important part of customer onboarding, they should not be the sole focus. In today’s complex fraud landscape, automated document checks that go across multiple documents and use advanced technology are crucial. By implementing a holistic verification process, businesses can significantly enhance their fraud prevention efforts, make more informed decisions and create a more secure environment for all parties involved.
VerifyPDF’s automated document checks represent a significant step forward in comprehensive fraud prevention, addressing the blind spot that traditional ID-focused verification methods often miss.
