Businesses and individuals who have suffered from ID fraud understand how big of a threat it actually is. Most people are familiar with the process of document and ID verification. It’s something that banks and financial institutions have relied on for decades to fight identity fraud. However, businesses might be relying too much on the physical environment. Physical or manual verification of customer ID leads to additional friction, slows down the process, and prevents the businesses from scaling.
A digital document verification solution is the perfect solution that verifies customer ID remotely. It is a great way to check if an ID is genuine, as part of a remote onboarding process. This improves the efficiency of your ID checks. Digital document verification protects your business from fraudulent IDs, reduces friction, and increases good customer experience.
However, not all businesses have the resources to do so. It requires expertise, advanced document verification technologies, and improved scalability. There is a variety of document fraud, and each one has a different method of detection. It takes time and money to identify different types of fraud. And sophisticated online document verification solutions can help.
Different Types of Document Fraud
Before businesses learn the benefit of online document verification technologies, businesses should get some insight into different types of document fraud. The fraudulent document can be categorized into three different groups:
- Modified documents: These types of documents are created when a fraudster alters an original, genuine document stolen by someone else.
- Illegal documents: These document types contain fake information.
- Falsely represented documents: these documents can be legitimate or original, but they don’t belong to the person who’s using the documents.
Each of these different groups then contains its own fraudulent documents. There are two different types of modified documents, forged and stolen documents.
Illegal documents also come in three different forms, counterfeit documents, compromised and fantasy/camouflage documents. And the falsely represented documents are of two types, which are fraudulently obtained documents and imposter documents. This is the most difficult type of ID fraud to detect without great identity verification software.
Fraud is complex and fraudsters keep devising new methods to tamper with documents, there are also millions of different ID types from different countries. Each document has different patterns and different security features.
Solutions like DIRO’s online document verification specialize in identity verification by verifying customer documents instantly. DIRO can also verify 7000+ document types from different countries. It also provides 100% proof of authentication for verified documents backed by verifiable credentials.
Document Verification to Detect Different Types of ID Fraud
As each type of ID Fraud is different, you need different approaches to catch as many of them as possible. The best way to identify modified documents is to look for consistency in the documents. This also includes checking the document registration number, expiration date, DOB, gender, and other data that are usually present in all areas of the document.
When it comes to falsely represented documents, things tend to get a bit difficult. Proof of ownership of a document is the primary way to tackle these types of fraud. While document verification has its benefits, it is less effective as a standalone solution. Combining the human touch with a digital document verification solution is the thing you need to do.
