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Are You Protected Against Document Fraud? 3 Ways to Recognize a Fake ID

Protecting your business from dealing with fraudulent customers, consumers, and business partners is a vital concern for business practice in this day-in-age. With the rise of internet and online fraud, as well as the existing possibilities of in-person fraud, a business can never be too safe when it comes to protecting against document fraud. In fact, according to a report from Equifax, ID fraud accounts for about 80 percent of all credit card fraud losses and nearly 1/5th of credit card charge-offs. Luckily, you can find identity verification solutions from trusted identity verification services that can provide your business with not only the safety and security that comes with added protection, but also help you meet the regulatory compliance needs (think KYC and AML) while providing a secure customer experience.

Three Ways Your Identity Verification Service Will Recognize a Fake ID

There are dozens of different identity verification solutions that your service company can provide, but here are a few ways they can help you spot a fake ID and protect your company from document fraud.

SSN Information

Typically, data is used to create fake identities to develop patterns that won’t trip up your built-in identity systems, but this isn’t always effective. Luckily, Identity Verification services use data to build up a solution for combatting fraud. Equifax mentions in their report that services that verify identity will look out for the SSN numbers. Can the SSN be matched to the specific consumer based on comparison algorithms? Can it match to a different consumer? Is there no credit available for the requested applicant? Or, worse, does the SSN match to a different consumer, the credit file is available, and the address is provided, however, the SSN on that file is different than the SSN provided on the inquiry? Those are the points to consider for this kind of data.

Data from the Picture on the ID 

Next comes something a bit more complicated. Using different data sources, more than just the SSN data source, you can determine the likelihood of fraud even more so and find any smaller red flags that you might have missed prior. This type of data that can alert you to a fraud include things like IP address, physical location, biometrics, mobile identifiers, and social media. Looking at all these windows will allow you to get a well-rounded view that’s not restricted by one type of data. Maintaining a flexibility and awareness to assess multiple kinds of data can help your business stay ahead of the fraudsters.

Device Intelligence

Because online fraud is increasing so rapidly, identity verification services and companies must look at dozens of diverse ways that that identities could be fraudulent, meaning constant analysis and use of device intelligence. Companies can detect when identity elements are used inconsistently or a high rate, both of which are leading indicators of identity compromises. Additionally, services will use intelligence to monitor common access points where they know fraud and organized fraud schemes typically occur or will occur in the future.