How to Stop Accepting Fake IDs for New Accounts

More than 17 million people experienced identity fraud in 2014, according to the Department of Justice. And in 25 percent of the cases, the victims’ stolen information was used to defraud financial institutions. You could be doing more to protect yourself and your customers, and it starts with better ID verification and detection of fake IDs.

ID theft targets financial institutions and governments

25% of identity theft targets financial institutions

Furthermore, you’d be saving your customers a lot of grief.

Victims of identity theft spend weeks and months trying to undo the damage to their credit score, their bank accounts, and their sense of security. They dedicate many hours to call credit bureaus and card issuers, inquire into credit monitoring services, and research all their next steps.

Visual Inspection Cannot Always Spot Fake IDs

Community financial institutions need to verify customer IDs in lots of cases. For example, when you open an account for a new customer or cash a check for someone who’s not an existing customer.

The Know Your Customer (KYC) requirements for new account creation include three main pillars:

  • Identify the customer and verify their identity using reliable and independent source document, data or information
  • Provide relevant procedures and training to staff
  • Store all records related to customer identity for five years, including copies of identity documents

It’s true that banks perform many checks for AML compliance that include identity verification, customer due diligence, watchlist filtering, suspicious activity monitoring, fraud prevention and investigative tools.

But for years, the first step – namely that of ID verification – has been treated the most lightly.

Download our infographic: The Risks and Limitations of Visual ID Document Verification

Just think how you verify a customer’s ID today: a member of your staff looks at the customer, looks at the ID, and does a visual comparison between the two.

You may even have one of those books on hand, which catalog all the IDs and their security features, to help you spot a fake.

But that’s not going to work. Do you know why?

With more than 1000 state and federal IDs, how can employees spot fake IDs?

With more than 1000 state and federal IDs, how can employees spot fake IDs?

Between the individual states and the federal government, there are over 1,000 different driver’s licenses and IDs in the United States. And those documents get updated and changed all the time.

How can anyone keep track? Is it feasible to train your employees on the intricate details of each ID? Should you be relying on visual inspection to spot a fake or stolen ID?

The good news is that in the age of technology – you don’t have to.

Automated ID Verification to the Rescue

Visual ID document verification is flawed. Not only is it error-prone and inconsistent, it makes your audits harder and it doesn’t lend itself at all to the inevitable digital transformation. And that’s why you find yourselves accepting fake IDs.

Automated ID verification solutions exist to take all the guesswork out of identifying a valid ID document and verifying the person presenting it is indeed its rightful owner.

You capture the picture of the ID using a specialized desktop scanner or a simple office scanner. Then, the Shoreline ID Verification software performs more than 50 forensic checks to confirm the document’s integrity, security features and data consistency.

It only takes a few seconds, but the solution is actually doing a lot.

It examines micro-print and security threads, special paper and ink, seals and holograms, patterns and geometric settings, and data consistency throughout. If those features are not there – the software will flag these as non-verified IDs, suspected as fake IDs.

Nearly all state IDs have been updated for REAL ID compliance

State IDs are being updated for REAL ID compliance with more security features

The software references an up-to-date library of all US state and federal IDs, and never overlooks a recent document change or update.

Take for example all the new driver’s licenses and IDs reissued to comply with the REAL ID Act and AAMVA security guidelines. All those new documents and their security features are checked and verified by the solution.

No Processor Integration Required

In-branch automated ID Verification is something you can implement completely independently from your processor and with a very light investment.

The solution can also be deployed across a network of credit unions or community banks with shared branching services.

Automated ID Verification

Shoreline’s ID Verification solution can be set up easily for any size financial institution

Shoreline’s ID verification solution is cloud-based. That means all you need in the branch is the device to capture document images and access to a secure web interface. We run the software securely from our data center.

Have questions about ID Verification? Get the solution brochure or contact Shoreline sales.

Customer Login Portal

Please enter your login information below. Contact for help.

Did you forget your password or username?

Request Download

Please enter your information below to access the file download link.

This field is required.
This field is required.
Email Address not valid. This field is required. This field is required.