Fake documents continue to be a threat to businesses. AI tools offer various advantageous features, but these same tools are being widely misused to create fake documents. Between 2023 to 2024, digital document forgery increased by 244% and is predicted to keep surging to this year. For businesses, this is a strong reminder to enhance protection against the risk of document fraud, which can cost them financial losses. However, detecting fake documents remains challenging, as forgery methods keep evolving and changing.
In this guide, we have answered the biggest questions on detecting fake documents, from what signs to look for, which tools to use, what to do if you suspect fraud, and more.
What are the most common document fraud methods today?
Document fraud can take many forms. In recent years, the most commonly found types of document fraud are synthetic documents and entirely fake documents. Synthetic documents combine real and false information, such as an ID card that uses a genuine identity but a falsified photo. Entirely fake documents refer to imitating official documents using fake information to present a false reality.
What are the signs of fake documents to watch out for?
Not all signs of fake documents are visible on the surface, some require deeper analysis to uncover the red flags. Here’s a breakdown of the visible and hidden signs of fake documents to look for.
Visible Signs:
- Blurry or low-quality photos
- Misaligned text, logos, or seals
- Missing watermarks/stamps
- Messy document layouts
Invisible Signs:
- Suspicious file origin and metadata
- Signs of digital editing/tampering
- Hidden layers in the file
- Inconsistent font use
What types of documents are frequently faked?
Financial documents such as invoices, receipts, and bank statements are becoming the most targeted for illegal actions. They are often falsified to gain benefits such as loans or bigger money reimbursements. However, the manipulation of legal and claim documents is also widely found, creating serious risks to both individuals and organizations.
How can we use AI to detect fake documents?
AI has been increasingly improving many areas of business, including for fraud prevention and detection. With its advanced capabilities, AI learns, recognizes, and identifies patterns in documents, flagging every sign of forgery. Fintelite is powered by AI to provide a digital forensic solution for businesses to detect document fraud fast and automatically with high accuracy.
How does Fintelite identify digital forgeries in documents?
Fintelite AI-powered document forensic analyzes deeper than surface check. Built with industry-standard fraud detection metrics, it facilitates complete check of any potential forgeries. The system analyzes metadata files to see where and when the document was created, whether it shows traces of editing tools being used. Moreover, it also evaluates font inconsistency, embedded images, and other elements that often reveal signs of tampering.
What types of documents can Fintelite check?
Any type of document can be checked and processed through Fintelite AI forensic tool. Most companies use Fintelite to verify bank statements and invoices. For bank statements, Fintelite provides two-way checking, uncovering fraud in both transaction records and document properties. This solution has helped lending companies conduct efficient and advanced risk assessments on borrower bank statements.
Book Demo: See how Fintelite works
Are the fraud rules in Fintelite customizable to our needs?
Yes, you can easily adjust the fraud rules to meet your business standards. For example, you may need to change the transaction amount limit when analyzing bank statements to trigger a flag. If you require further document processing customization, our team is open to discuss for tailored solutions to fit your specific needs.
Conclusions
Facing the increasing document fraud pressures businesses to start adopting advanced technology to strengthen their defenses. By embracing AI-powered tools like Fintelite document forensic, businesses can mitigate risk of fraudsters and ensure stronger security in their operations.
