When it comes to identity verification (IDV), one of the most challenging types of document fraud to detect is the use of fraudulently obtained genuine documents. As the name suggests, these documents are issued by legitimate authorities but are acquired through deceptive means, making them incredibly difficult to identify using standard identity proofing techniques.
This blog post will explore the nature of fraudulently obtained genuine documents, the risks they pose, and how FraudHub provides organisations with a powerful tool to combat this type of fraud.
A distinctive type of fraud
A fraudulently obtained genuine document is an official document that is authentic in itself but was obtained through fraudulent methods. Fraudsters may use false personal information, forge supporting documents, bribe officials, or exploit system vulnerabilities to secure these documents.
The resulting documents are, because of their authenticity, indistinguishable from those obtained legitimately, making them a significant threat to identity verification processes.
Analysing the risks
The use of fraudulently obtained genuine documents can have severe consequences for individuals, businesses, and indeed, for society as a whole. These documents can be used to facilitate a wide range of criminal activities—including money laundering, human trafficking, terrorism, and illegal immigration. They also enable identity theft and financial fraud, allowing fraudsters to open bank accounts, secure loans, and engage in other financial transactions under false identities.
On a more macro level, the widespread use of these documents undermines trust in financial, governmental, and social institutions, leading to increased costs and inefficiencies as organisations strengthen their security measures. Fraudulently obtained genuine documents can also pose a threat to national security, enable immigration and citizenship fraud, and facilitate tax evasion and social benefits fraud.
Here comes FraudHub
While detecting fraudulently obtained genuine documents during a standard remote identity proofing process is incredibly challenging, FraudHub offers a powerful solution. Through the use of advanced analytics and machine learning, FraudHub identifies patterns and anomalies in identity verification data that may indicate the presence of fraudulently obtained documents.
One of the key features of FraudHub is its ability to detect the presence of repeated identities within an enterprise environment. Fraudsters often use multiple identity documents to test an organisation’s identity verification processes. FraudHub’s velocity and anomaly rules can flag suspicious activity, such as the same name appearing on different identity documents or the same face being associated with multiple identities.
Even if a fraudster uses the same mobile number but with different identity documents, FraudHub will identify this as a red flag.
While these anomalies and velocities do not guarantee the presence of fraud, they provide organisations with valuable insights and tools for decision-making. FraudHub, by identifying this potentially fraudulent activity, places organisations in position to take proactive steps to prevent fraud and protect their customers and stakeholders.
Introducing Blocklist Beta
To further enhance its fraud prevention capabilities, FraudHub has introduced the new Blocklist Beta feature. This innovative tool allows organisations to permanently bar fraudsters from future transactions by adding them to a customizable blocklist. At the same time, genuine victims remain unaffected and protected, ensuring a more secure experience for all users.
The Blocklist Beta feature represents a significant step forward in the fight against fraudulently obtained genuine documents. It empowers organisations to take decisive action against fraudsters while safeguarding legitimate users, providing a comprehensive solution to one of the most challenging aspects of identity verification.
Keeping up with bad actors
It’s difficult to stop fraudsters from using deceptive means to acquire authentic documents and bypass standard identity verification processes to engage in a range of criminal activities. But with the help of FraudHub and its advanced analytics capabilities, organisations can now effectively detect and prevent this type of fraud.
Through its ability to identify repeated identities, anomalies, and suspicious patterns, FraudHub provides organisations with the tools they need to combat this form of fraud. And with the introduction of the Blocklist Beta feature, FraudHub takes fraud prevention to even greater heights, ensuring that fraudsters are permanently barred from future transactions while protecting genuine users.
In the face of ever more sophisticated fraud tactics, the importance of robust identity verification cannot be overstated. Through the power of FraudHub, organisations can stay one step ahead of bad actors, safeguard their customers and stakeholders, and maintain the all-important element of trust.
About the post:
Images are AI-created. Prompt: A 19th-century steampunk jeweler using an elaborate eyepiece to examine a passport, highly detailed, photorealistic. Tool: Midjourney.
About the author:
Paul Warren-Tape is IDVerse’s GM for the APAC region. He has 20+ years of global experience in governance, operational risk, privacy, and compliance, spending the last 10 years in pivotal roles within the Australian financial services industry. Warren-Tape is passionate about helping organisations solve complex problems and drive innovation through encouraging new ideas and approaches, whilst meeting their legislative requirements.
