How Can We Avoid Sophisticated Documents Frauds in 2022?
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How Can We Avoid Sophisticated Documents Frauds in 2022?

It’s difficult to believe that counterfeit documents and false IDs are still a significant business. After all, we live in a connected society in which it appears that much of our time is spent on screen and accessed digitally via passwords. We’ve grown so accustomed to thinking that online information – such as internet bank accounts and government tax portals – is fundamentally more useful than physical documents (driver’s licenses, passports, and so on), that we often overlook the fact that documents frauds are a lucrative market.

Documents frauds, in reality, cost the world economy £3.2 trillion every year. It’s one of the world’s most profit-making criminal industries, and it’s just getting bigger. Why is it so and what can be done to avoid such sophisticated documents frauds in 2022?

Why Were Documents Frauds So Prevalent in 2021?

As per Interpol, documents frauds mean altering, counterfeiting, manufacturing, or using identity documents or other fraudulent documents to bypass immigration laws or for other criminal purposes. 

Since counterfeited documents are now more difficult to alter or create, they are more valuable to criminals, which is why they have become so prized in 2021. A tamper-proof document remains a holy grail among criminal gangs, despite the introduction of highly sophisticated biometrics.

Statistics of Documents Frauds 

Fraudulent document schemes are rapidly evolving. Due to advances in the detection and prevention of document fraud, formerly popular methods have become obsolete overnight. Criminals are pushed to devise new tactics and in the meanwhile, law enforcement institutions struggle to respond.

As per the XDR report, losses associated with identity theft rose 42% in 2020, reaching 712 billion dollars, which made online identity verification tricky for businesses. Whether it’s financial services, healthcare systems, or retail verifying that the user is authorized defines the customer’s trust and discovers if you are a leader or a straggler in a digital economy. 

Types of Documents Frauds

Here are several ways through which document frauds are carried out. 

  • Illegitimate Documents: These are false documents that have missing characteristics, such as holograms, that are an important part of a document.
  • Image Fraud: Image fraud is when the attacker provides a photo of the identity document besides proving the original document which makes it easy to manipulate.
  • False Documents: False documents mean when someone tries to use a legal ID that does not belong to them. 
  • Modified Documents: It is a hybrid approach and occurs when a genuine or original document is changed. 

How to Avoid Documents Frauds?

Traditionally documents checks were carried out manually in which the trained security officials had to look over every application and this process was slow, expensive, and inaccurate. With the advent of AI-based document verification services, financial institutions and businesses can efficiently combat document fraud.

AI-Based Document Verification Process

Artificial Intelligence helps to e verify documents and customers around the globe. Here are the three simple steps of how an AI-powered document verification process works.

  • Step 1: End-user is asked to take and upload a photo of the government-issued ID document.
  • Step 2: The data is extracted from the documents with OCR technology.
  • Step 3: The information, as well as the format of the identity document, is validated through AI verification technology.
  • Step 4: A Yes or No is displayed on the screen and the results of the ID document verification are kept in the back office.

Benefits of Artificial Intelligence in Document Verification

Online document attestation provides a broad range of benefits along with speedy turn-around time. Artificial Intelligence can manage verification of several documents easily across the globe, and every identity document with different fraud spotting rules and elements. 

Furthermore, when any businesses or financial institutions use AI-based document verifications procedures, errors are reduced by a huge number. AI-powered solutions are popular for the detection of frauds as well as red-flag patterns which are usually missed out on by humans.

Final Thoughts

Businesses have been undergoing a digital transformation for a long time, but the global pandemic has amplified the process. To prevent documents frauds, businesses often follow strict regulations, which can lead to complicated processes that may alienate their customers.

It is crucial to verify documents without compromising customer satisfaction. The best solution for achieving that goal is a machine learning-based digital document verification solution. It not only investigates the frauds but also helps to combat document frauds in the years to come. Thus, it is right to say that Artificial Intelligence-powered document verification solutions are the future.

Bharat Negi
Hi, this is Bharat Negi Currently I'm working as an Sn. Digital Marketing Executive. 
https://letsaskme.com/