Business, Technology

Document Frauds: Time to Stop Them With Novel AI-driven Methods

Documents have been one of the easiest ways to identify a person since late middle ages. Identity cards, passports, and driving licenses are important aspects of social, political, and economic life. Criminals have recognized the significance of these documents from their inception.

They saw that utilizing fake documents gave them various advantages, such as the opportunity to stay anonymous and traverse borders. They used forged documents as identification in order to get around the security system. The use of fake identification and travel papers are all types of documents frauds. So, there is a need to authenticate documents with robust AI-driven methods to combat identity fraud and other crimes.

Document Frauds – Evolution with the Time

According to CNBC, document frauds costs the global economy $56 billion each year and is growing every day. Practically every nation where written agreements on paper have been made since the dawn of time has seen the commission of this crime. Forgery laws date back to 80 BC, when the Romans prohibited the use of forged documents to transfer properties to heirs. Every developed country progressively implemented anti-forgery legislation, yet some of the most advanced forgers evaded detection.

Document frauds have modernized along with technological advancement. Fraudsters are committing forgeries on original papers using novel tools. They are employing artificial intelligence to create fake currency notes, bogus passports, driving licenses, and identification cards. Their fake documents are so accurate that it is very difficult to recognize them using regular means. So, there is a need for a more efficient technique of document attestation.

Different Types of Document Frauds

Document frauds may occur in a variety of document types, such as invoices, identification papers, and business contracts. The most typical types of fraud are as follows:

1. False identity Fraud

Identification fraud is defined as forging and utilizing someone’s identity documents for criminal purposes such as corruption, money laundering, and terrorist funding. The company frequently isn’t aware of the fraud until after it has already taken place and caused financial harm.

2. Invoice Fraud

The typical source of invoice fraud is when a caller pretends to be a supplier and contacts the business. In 9 out of 10 cases, scammers create phony invoices based on their knowledge of the supplier and buyer’s connection. Then they ask to have the bank account changed so they can trick the company into sending money to the fraudster’s account. Amazon paid $19 million for items they never ordered in 2020, proving that no one is immune to this fraud.

Document Frauds – Effects on Business

Digitalization is like a two-sided coin with advantages on one side and disadvantages on the other. Organizations have fully embraced digital platforms to get better results with a high conversion rate. It is essential to know your customer, including all relevant details and documents, before signing a contract. 

A person can cheat a corporation if they fabricate business papers related to the company’s financial issues or accounts. They can also get bonds, sensitive information, stocks, and contracts. Depending on the actual amount, these adjustments might lead to a lawsuit asking for compensation and additional damages. These offenses commonly rise from state to federal jurisdiction. The perpetrator of this form of forgery can face federal prosecution and jail.

How to Detect Document Frauds

Detecting counterfeit papers requires both modern technology and human experience. Technologies have progressed so swiftly over the years with the integration of artificial intelligence & deep learning for document verification. This is necessary because data manipulation by fraudsters is becoming more advanced. They are also concealing their changes by using advanced fake and graphics processing techniques.

Document checks can discover counterfeit indicators that are often missed. Identity verification can help to reduce the risk of fraud. Furthermore, integrating document validation services with a database cross-check to establish whether the document was stolen or lost can be useful. Human operators should also keep up with technological advancements and security trends.


Document fraud is the use of another person’s identification for the purpose of deception and obtaining financial or other benefits. This deception is as ancient as the language itself. When passing territory to heirs, the ancient Romans resorted to fake written papers. 

However, as technology has advanced, so have document frauds schemes. Fraudsters can now simply construct a forged identification card, passport, or even a driver’s license. They can use these fake documents in any illegal activity. As a result, new AI-powered approaches to detect counterfeit papers are required. Document verification services are helping the firms to verify id of a person. In this way, they can secure themselves from fraudsters. 

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