Understanding Identity Document Forgery and Its Consequences

What is Identity Document Forgery?

Identity document forgery involves copying or altering official documents issued by authorities by unauthorized individuals. They aim to deceive those who check the documents about the identity or status of the person holding them. The act of fabricating or falsifying identity documents or other items to mislead and profit from them is known as forgery. According to the Annual ID Fraud Report 2022, document fraud has increased by more than 30 percent each year. In 2022, the number of documents forgery increased, with passports (40%) taking the first spot, followed by identity cards (26%). Document fraud is around 24%, up from 30% in 2021. Pakistan, India, and China occupy the top three positions for passport fraud with 41%, 40% and 39% respectively. This also applies to ID cards.

Document Frogery includes the creation of a false document from scratch, or deliberately changing a genuine document to add, delete, or modify information, while presenting it as original. Fake documents can include photo substitution, data alteration, changes in visa, or ID numbers, etc. The following infographic shows how you can spot document fraud.

According to Sumsub, more than 50% of document fraud worldwide is attributed to five countries:

CBS News reported on a scam in Denver, Colorado that is hurting immigrants and putting Americans at risk of identity theft as well as reduced government revenue. Criminals sell fake IDs, such as Social Security cards, to immigrant job seekers for about $120. With long wait times and expensive legal permits, immigrants buy these papers to support their families.

In another report, the Aliens Division of Attica, with support from Europol, targeted a criminal network in Athens involved in document fraud (falsified travel and ID documents) and migrant smuggling. This operation resulted in seizures of over 4,650 illegal documents, among other achievements.

With the increase in identity document forgery, it’s crucial to prioritize thorough document verification.

Types of Identity Document Forgery

Identity fraud has been around since the first ID document was made. There are many tricks and techniques that criminals use.

1 Mannual Alteration

These include original documents that were issued by legal agencies and stolen from their original owners. Fraudsters change or remove some physical information, such as a picture or name. They can also add fake entry/exit stamps to passports that contain visas. Changing information is also called forgery.

2 Counterfeiting

Some fake documents are created from scratch. To create a passport or ID card, fraudsters can contact companies that make security features and give them access to paper such as stamps, UV dull paper, holograms, and ink pads. They can also use blank documents as a canvas.

Blank document fraud is a distinct form of document fraud where blank but official-looking documents with original signatures and seals are misused. It starts with obtaining or stealing such documents, which can range from blank checks to pre-signed official forms. Fraudsters then forge these documents by entering false information and using the original authenticity or signatures to lend undue credibility to the forged information.

3 Computer Simulation

The freedom of information technology has led to an increase in synthetic identity fraud. Another way is to sell free ready-to-use blanks for specific types of ID documents. There are also digital services that allow you to create an ID card or driver’s license from scratch. Since this process usually takes a few minutes and results in a cost of $10 per product, many forged identity documents are produced in this way.

4 Pesudo Document

This type of identity document forgery occurs when codes are copied from official documents such as passports or national ID cards. This is done so professionally that no regulatory authority can detect such strange things immediately.

5 Camouflage Documents

Camouflage documents are produced to mimic official documents. They often contain the names of issuers that do not exist or do not legally issue such documents. Its main purpose is fraud, identity theft, and other deceptive activities by exploiting the authenticity of official documents.

6 Forged Documents

Forged documents are the intentional alteration of real documents with false information. This may include changing dates, names, numbers, or other important details in an official document. Fake invoices, identity documents, legal contracts, and fake academic certificates can be created. Any document of significant value or authority can be forged.

An example of a forged passport featuring a magnified Machine Readable Zone (MRZ) area.

7 Image Fraud

It focuses on manipulating images of documents rather than the documents themselves. This includes editing scanned images or important documents such as ID cards, financial records, or other official documents. Passport and ID card photos usually have extra protection like ink stamps, embossing, or laminates with visible security features. Fraudsters use extremely fake graphics and engineering techniques to alter important elements in document images. Altered elements include text, dates, and photographs, giving a misleading impression of the original document.

A forged Greek ID card with an ink stamp is shown below

8 Identity Theft

Identity theft begins with the theft of personal information, such as names, addresses, and financial information, which is then used to create or change an identity, passport, or credit card for illegal purposes, such as opening bank accounts. Synthetic identity fraud involves creating new identities by mixing real and fake information, often by copying codes from real documents such as national ID cards. This type of identity document forgery does not necessarily modify existing documents, but instead creates entirely new identities, presenting a unique challenge in the fight against fraud.

Also Read: How to prevent identity theft with KYC?

Document Frogery in Various Industries

Identity document forgery occurs in many industries as shown in the picture below. These frauds include identity theft, credit card fraud, stolen equipment, forged receipts, Illegal access to government services activities, false insurance claims, fake certificates, and real estate fraud. Therefore, these fraudulent activities lead to loss of money, trust loss, and credibility damage across all sectors.

Laws For Identity Document Forgery

The following list shows the different laws against document forgery in different countries.

Penalties for Identity Document Forgery

Identity document forgery is a crime in all countries, but the penalties vary from country to country.

Securing Your Business Against Document Forgery

Technological developments are assisting ID thieves in refining their strategies. Businesses need to be alert and take precautions against fraud and identity theft even in the face of government and law enforcement organizations’ best efforts to improve document security.

Using trustworthy authentication software that can identify and stop fraud is one of the finest methods to shield yourself from the risks associated with forged paperwork. The KYC AML guide offers vendor analysis and KYC technology buying consulting services to assist you in locating the most effective KYC identity verification methods for document verification.