Identity Document Verification | Secure Preventions Against Fraud Risks

Written by articlehubspot admin | September 22, 2022

document verification

With industries developing more innovations such as remote onboarding, digital payments, virtual medical assistance, and online shopping, criminals are also vesting their interests. To create fake profiles and dodge identity verification checks fraudsters forge identity documents. By altering existing information or creating a completely new one, criminals easily commit immigration scams, fraudulent transactions, money laundering, and various other illicit activities. Considering the increase in fraud risks, regulatory bodies are toughening their stance regarding identity document verification.

Within various jurisdictions, information forgery is seen as a serious legal offense. However, the penalties vary from region to region depending on the type of government-issued certificates. This blog sheds light on fraud types, regulations regarding forgery crimes, and how digital ID document verification upholds the integrity of industries.

Documentation Verification Service Provider – Outlining Major Types of Fraud

Within Europe, the legal bodies are enacting Regulation (EU) 2020/493 to mandate businesses handle documents more critically. While providing remote onboarding, platforms need to adhere to their operations with identity document verification guidelines provided by this act. They should perform efficient and accurate authenticity checks to confirm the originality of information as well as identity proof of customers.

The legal requirements regarding identity document verification involve the analysis of authentic certificates such as ID cards, passports, green cards, and driving and vehicle licenses. These obligations apply to both EU members and third countries whose businesses are operating within its jurisdiction. Moreover, industries should mitigate forgeries and criminal threats henceforth by identifying tampering across global templates.

Document fraud can take many forms depending on the nature of the crime. In the case of illegal immigration, forgeries are made with first-hand identity proof. Whereas, medical scams involve tampering with treatment records, insurance details, and payment information. However, every manipulation comes with consequences such as legal proceedings, non-compliance risks, and reputation damages. This requires businesses to incorporate identity document verification solutions to further prevent the following types of fraud:

Documentation Verification

Forged Documents

This type of fraud involves deliberate tampering with information within government-issued documents. The addition, modification, and alteration of identity details help criminals create original-looking certificates. Fraudsters forge information to hide their true selves. This type of fraud enables them to escape document verification system crunches while opting for onboarding on global platforms.

With AI-powered identity document verification solutions in place, businesses can cross-validate information across global records. Similarly, advanced tools such as OCR for data extraction and ICR for handwriting analysis enable industries to prevent forgery crimes in minimal time.

  • Counterfeit Documents

Counterfeit documents are the result criminals generate after reproducing original information. There is no legal authorization from any relevant regulatory authority for this change of identity details, which makes it hard for businesses to counter them. Fraudsters use technologically advanced tools such as photoshop to make alterations and copy-pasting the legitimate authenticity features.

Online identity document verification comes with ICR technology that is capable of analyzing various templates across global records. Moreover, industries can detect any sign of fake information without increasing their chances of non-compliance.

  • Pseudo Documents

To trick online document verification systems, criminals replicate codes from original certificates and use them for forgery attempts. These involve MRZ texts on passports, holograms in ID cards, and other such authenticity-ensuring features.

Tampering with the information and authenticity features are sure ways for criminals to escape identity document verification checks. As digitization automates data extraction and analysis, fraudsters are developing more sophisticated methods. This requires industries to integrate efficient AI-powered identity document verification solutions to counter prevailing fraud risks.

Penalties for Failure in Combating Document Fraud Across Europe

As mentioned earlier, the penalties vary from jurisdiction depending on the type of document fraud and the criminal intention behind it. Even within Europe different regions are placing distinct identity document verification requirements in place for industries. Considering the increase in illegal activities and adverse consequences they are driving, regulatory bodies are imposing strict fines on fraudsters as well as businesses.

A variety of distinct id document authentication regulations can be found within Europe. More details regarding these legal standards, penalties, and punishments for forgery crimes are in the next section:

Article 1 of the UK’s Forgery and Counterfeiting Act of 1981 defines document forgery as a criminal offense that involves the intention of posing as someone else. The penalties for businesses failing to build efficient identity document authentication include hefty fines. Criminals involved in this fraud can face imprisonment sentences of up to ten years and high-value charges.

In Summation

While businesses are innovating their operation, document fraud implies a high risk of financial loss, reputation damages, and penalties from relevant authorities. Criminals are vesting their complete efforts in exploiting industries and illegitimately onboarding platforms to reap illicit benefits. Moreover, sophisticated attempts by fraudsters are making it challenging for businesses to identify them. Therefore, they need to integrate AI-powered identity document verification solutions to better combat forgery crimes.

    September 22, 2022 | 39 Views

    Leave a comment