"Unfortunately, those we surveyed that believe they can spot a fake, are sadly mistaken."
Almost a third (28%) of regulated firms surveyed claim that analysing hard copies of documents is the most reliable method for identifying fraud and another 28% were not aware of digital verification methods.
Electronic verification combines credit reference data, biometric facial recognition, and digital fraud checks as well as electoral roll data and other reliable public sources to establish identity.
By triple checking these different sources of information a unique ‘composite digital identity’ is produced. This digital identity is virtually impossible to fake. All this can be done online, with no need for in-person meetings, face coverings or hard copies of documents.
SmartSearch says its latest findings are particularly concerning as there has been a spike in fraudulent documents recently as criminals attempt to obscure their identity. Its recent research found almost half (48%) of respondents had reported a rise in financial crime attempts in the past 12 months.
John Dobson, CEO of SmartSearch, commented: “Criminals are laundering millions of pounds in the UK, and they are using the most sophisticated methods possible to attempt to deceive.
“Therefore, it’s imperative that regulated businesses use all the technology available to them to fight against the growing wave of fraud.
“It takes an expert to even know the signs to look for in a fraudulent document, and those that are involved in money laundering are using state-of-the-art technology to create incredibly realistic forgeries. Unfortunately, those we surveyed that believe they can spot a fake, are sadly mistaken.
“It is encouraging that the majority polled stated they would struggle to spot a forged document, however the gaps need to be plugged.
“Switching to electronic verification is the smart thing to do. When it comes to preventing money laundering, it is the only real defense.”
