Lack of ID document standards, language barriers pose fraud detection challenge: Regula

A lack of standardization among identity documents is the most common among several challenges facing businesses when they attempt to verify the identities of foreigners, according to a survey from Regula. The challenges are being experienced by many companies, given that 92 percent of businesses verify more foreign ID document than domestic ones. Lack of unified document standards was cited as a significant challenge by 41 percent of respondents.

The survey was completed earlier this year with 750 fraud prevention decision-makers responding, and 750 digital nomads from the U.S., UK, Germany, Spain, the UAE and Mexico.

Regula found that 40 percent of businesses have been affected by identity fraud, with those in financial services and retail reporting higher rates. Language barriers also post a problem for 36 percent of businesses, and even more in healthcare and insurance.

The growth in AI-generated identity fraud led to an average cost of $300,000 from successful attacks on enterprises, according to Regula’s identity verification report, Head of Product Marketing Kate Volskaya noted during Regula’s recent webinar on biometric liveness detection.

“As the world is starting to pilot the concept of digital IDs, it is possible that in the foreseeable future, we will achieve a certain level of identity document standardization,” says Regula EVP of Identity Verification Solutions Henry Patishman. “That means some of the current challenges in international ID verification will likely be mitigated. In the meantime, both businesses and IDV providers have to concentrate on tackling fraud and language barriers.”

The first release of data from the survey highlighted how businesses use biometrics and ID document verification to handle simultaneous growth in international businesses and identity fraud.

“From our experience, we see that there are two effective ways of dealing with these issues: enhancing the set of document and biometric checks, with a strong emphasis on data cross-checks to spot any possible inconsistencies that may indicate fraud, and growing your own document knowledge database to be able to read any document in any language correctly,” adds Patishman.

Article Topics

digital ID  |  document verification  |  fraud prevention  |  identity document  |  identity verification  |  Regula  |  standards  |  synthetic identity fraud