Safeguarding the future of our economy through safer online ID Verification
We hear about identity theft or identity fraud a lot but unless we’ve become a victim of it, the concept remains surreal and distant. This doesn’t mean that we should sink into complacency and let our guards down.
More than ever, it’s important to protect yourself against document and ID fraud. A smart way to get started is to familiarize yourself with what identity fraud is. Arm yourself with information and put yourself in a better position to protect your documents and ultimately your finances.
This knowledge is even more crucial if you’re running a business. By becoming more familiar with the issue, you can protect your enterprise from unexpected losses while shielding your customers and partners against it. Internally, you can educate your employees about its dangers as well.
The following facts are pretty sobering and show us that identity theft and fraud is real and has real victims:
- The Federal Trade Commission (FTC) received over 2.1 million reports of fraud from consumers in 2020.
- A 2018 study conducted by Proofpoint revealed that a full third of the US population experienced identity theft. That equates to 107.8 million Americans.
- According to research-based advisory firm Javelin, identity theft caused $56 billion in losses in 2020.
- A report published by business advisory firm Crowe pegs the economic global cost of fraud at $5.127 trillion in 2019.
Indeed, fraud is a legitimate issue that costs the world trillions of dollars. Document and identity fraud can happen to anyone regardless of socioeconomic status. It can result in serious losses that can be difficult to recoup.
Knowing about the issue will empower you and your team in your battle against fraud. It can keep you vigilant and can make you better at fraud detection.
How To Identify Document or ID Fraud
A great place to start is knowing the difference between document and identity fraud.
What Is Document Fraud?
Document fraud involves the unauthorized fabrication, reproduction, fakery, forgery, and misrepresentation of official documents to bypass checks. These official documents can include passports, contracts, checks, permits, medical records, and even school records.
What Is Identity Fraud?
Identity fraud is the act of using another individual’s personal information, usually without prior consent. It usually involves an intent to deceive the victim or another party, or is done to commit a crime. Identity fraud can involve document fraud, especially if forged documents are used by the perpetrator.
Is identity fraud the same as identity theft? These two terms are often used interchangeably, however, technically speaking, they’re different.
Identity theft refers to the act of stealing another person’s identity. ID fraud, on the other hand, encompasses the subsequent illegal acts committed by the person who stole the identity.
How Can You Detect Document Fraud?
When it comes to document fraud detection, knowing about the different types of fraudulent documents is essential. Here they are:
These refer to documents that have been manufactured or fabricated.
Illegitimate documents typically include counterfeit documents or sample documents that aren’t meant for official use. An example is camouflage passports that are issued in the name of a nonexistent state or organization. Sometimes, illegitimate documents come with other similarly non-genuine supporting documents for added credibility.
These are originally legitimate documents that have been changed.
Modified documents can be legitimate documents that were forged or blank official documents that were illegally acquired. Examples of documents that are frequently forged are wills, contracts, property deeds, loan documents, and other legal documents. There are instances wherein blank copies of driver’s licenses and passports are stolen for criminal purposes.
Falsely Represented Documents
These documents can be legitimate but are falsely claimed as belonging to the perpetrator. These include documents that are genuine but were obtained or generated without consent or under pretenses.
A scenario that qualifies is when a signature was obtained under duress. Another example is when a perpetrator gets hold of a document or certification that wasn’t meant for them.
Fraudsters will often use a combination of these three types of fraudulent documents to deceive or confuse. There are cases wherein criminals mix counterfeit documents with those that are genuine.
Having a proper document and ID verification system will significantly reduce perpetrators’ chances of getting away with fraud. For falsely represented documents, proof-of-ownership verification can be a deterrent.
Why Document and ID Verification Is Important for Your Business
Various methods for document and ID verification have existed for decades now. You might already be familiar with some of those methods if you’ve tried opening a bank account or have applied for an auto loan before.
In the world of insurance, proof-of-ownership verification is basically a standard requirement. Document and ID verification solutions are not only reserved for financial institutions of government agencies. They can also provide benefits for businesses, whether large, small, or medium-sized.
With the advent of digital technology, more and more businesses are using online ID verification. Also known as digital document verification, this solution continues to gain momentum with e-commerce gaining popularity in recent years.
The technology is improving. New versions of identity verification software are more accurate than ever. Artificial intelligence and machine learning are also being used to power verification systems.
What advantages can online ID verification offer your business?
Avoid Losses Due to Fraud
As mentioned earlier, fraud-related losses continue to hound businesses of every size and shape year after year. If you can prevent fraud from happening, you can minimize possible losses.
Faster and More Efficient
Physical document and ID verification often take time and manpower. In contrast, digital document verification can be done remotely and with the use of artificial intelligence (AI). It’s faster for your business and for your customers as well.
Prevents Manual Errors
Traditional document verification methods are prone to human errors but a well-designed online verification system will never get tired or misplace documents.
Protects Your Business’ Reputation
Customers trust is an important part of business. With online ID verification in place, you can assure your customers that you value legitimacy and authenticity.
Promotes Customer Loyalty
Trust can boost customer satisfaction and a satisfied customer is a loyal customer. Customer loyalty means greater sales, better profits, and sustainable growth in the long run for.
Protect Your Business Using Online ID Verification
Does your company have sufficient protection against fraud? It may be time to consider preventive measures to avoid costly, inconvenient, and embarrassing fraud-related issues in the future.
Digid helps businesses shield themselves from document fraud and identity theft. We specialize in identity verification software solutions, ID card validation, remote onboarding, and Know Your Customer (KYC) compliance for businesses.
You can take advantage of our solutions not only to protect your profits but also your reputation.