Identity verification measures are becoming more important for businesses to implement as technology develops and demand for online services and goods soars. All organizations have implemented various online customer authentication techniques, but identity documents are by far the most significant source of credential information. For companies that regularly conduct financial transactions, especially banks, the insurance industry, the cryptocurrency market, and raiding platforms, implementing a reliable document verification system is essential.
Despite the corporation’s efforts to verify the user’s identity, document fraud is on the rise, with a range of crimes including identity theft, money laundering, and terrorist financing. In 2021 alone, cybercrime cases in the UK will increase by 22% compared to the previous year, resulting in £2.5bn lost to fraud.
An Insight to Document Forensic Verification
Since the dawn of civilization, people have worked at forgery, especially changing seals, manuscripts, and signatures. All these scams have forced law enforcement agencies to look for solutions to prevent criminals from engaging in these illegal activities. The first examples of documentary studies are reported from the Roman Empire in the 3rd century. Romanians at the time were notorious for counterfeiting and laws were passed to verify their authenticity by examining forensic documents to eradicate crime. In 539, the Roman Emperor Justinian introduced the “Justinian Code”, establishing the basis for the forensic examination of documents and ordering judges to hire experts to investigate forgery.
Companies are using document forensic verification widely globally, including scientific law, when examining evidence and ensuring the security of businesses. Due to an increase in crimes, all organizations employ document analysis specialists who use a variety of methods to confirm the accuracy of the data. To combat fraud, experts employ photography, infrared imaging equipment, and handwriting identification methods.
How Document Forensic Verification can Terminate ID Fraud
Document forensic verification includes a range of expertise to detect counterfeiting, root out criminals and prevent identity theft and other financial fraud. In the US alone, document fraud in 2021 is 68% higher than last year. Securing business using our forensic counterfeit detection services is essential to ensure a smooth integration. Let’s look at the different cases where organizations can use strict document authentication measures to protect the identity of their customers.
1. Banking Fraud
Banks are major financial institutions that face more problems with document fraud, including cheque fraud, credit card fraud, and account takeovers. In the United States alone, over half a million check frauds are reported each year, resulting in significant financial losses. Criminals successfully manipulate the banking system and take money from someone else’s account using forged signature technology.
Hackers also use a variety of phishing activities to steal customer identities and commit credit card fraud. Document forensic verification services are the most effective solution to deter all these financial scams and banks need to use strict authentication methods to verify the identity of their customers.
2. Insurance Scams
Criminals often choose to submit fictitious medical or accident bills to insurance companies, giving them the opportunity to make large claims. Fraudulent claims are thought to be responsible for a loss of $80 billion in the US alone. The best way for insurance companies to examine receipts submitted by customers is through document forensic verification. Science-based document verification methods can help protect sophisticated users’ confidential information and keep bad actors out.
3. Immigration Scams
The use of fake documents and tempered documents is increasing and many cases are occurring in many countries, especially in the UK, USA, and Canada. Scammers try to manipulate loopholes by filing illegal tax returns, subpoenas, and educational certificates. Background checks help immigration authorities in these countries crack down on visa fraud and punish criminals.
Global Watchdogs Who Monitor Document Tempering
Global regulators, including the Financial Action Task Force (FATF), the European Union (EU), and Interpol, have identified document forensic verification as an important tool for combating money laundering, terrorist financing, and other financial fraud. This has led many countries to adopt strict regulations to deter criminals and prevent document fraud.
United States of America (USA)
US Code Title 18, Section 471 makes document fraud a federal crime. It says “Whoever forges, counterfeits, misrepresents or alters any bond or another security of the United States is a federal crime,”. Depending on the nature of the violation, penalties for offenses can include heavy fines and even jail time.
United Kingdom (UK)
Document fraud is now illegal in the UK thanks to the “Forgery and Counterfeiting Act,” which also imposes harsh penalties on offenders. All industries are covered by the law put forth by the UK government, including banking, insurance, online businesses, and education.
How Does Document Forensic Verification Help Businesses with KYC Compliance?
All online businesses struggle with identity theft, which further deteriorates the user experience and leads to financial losses. Document validation is an important part of Know Your Customer (KYC) actions, and validating customer identities through forensics can help companies avoid increased fraud and comply with global regulations.
The best method for securely verifying new customers for online businesses is to use modern document verification services. Document forensic verification powered by thousands of AI algorithms prevents identity fraud and protects consumers from the cost of fraud. Businesses specifically incorporate KYC services to facilitate customer onboarding using cutting-edge technology to verify user identities such as OCR and document forensic verification.
