Document Fraud: Here’s why it matters and what you can do

Document fraud is a problem that poses consequences for many organizations, particularly in the financial and insurance sectors. We refer to document fraud as the use of false or altered documents in order to gain access to goods, services, or information. 

What type of services are affected?

Document fraud affects many aspects of financial services, insurance claims, and government services for starters, but the list goes on and on.

A good example of document fraud can be found in mortgage applications, during which a person uses fake or altered tax documents, pay stubs or bank statements to obtain a loan they might not be qualified for. How much of a problem is this? Well, in 2021 CoreLogic reported a 37% year-over-year increase in mortgage fraud. This means 1 out of 120 mortgage applications were found to contain fraud – “found” being the operative term, because sometimes fraud goes unnoticed.

To compound matters, IDP (Intelligent Document Processing) is a technology that uses artificial intelligence (AI) and machine learning (ML) to automate the processing of various types of documents such as invoices, contracts, receipts, and more. 

IDP: Why is this new technology relevant? 

More and more financial services companies are using IDP to automate the processing of documents for applications, such as mortgages, and while automation saves money, it often leaves out human review. Without proper countermeasures, this automation may enable document fraud to grow and may even imply that the problem is bigger than the numbers indicate if there are no checks in place. And who pays for the cost of document fraud? Well, it’s organizations and consumers, of course.

For this reason, it behooves companies that utilize IDP to automate the intake of documents to take steps to verify the authenticity of documents. This can be done by using technology such as AI, computer vision and even blockchain. These technologies can identify anomalies found in documents and create alerts for suspicious records containing documents requiring human review while allowing documents that don’t present signs of fraud to be processed via automated means.

A win for automation and a win for fraud protection.

In conclusion

Document fraud is a serious problem that can have far-reaching consequences across a number of industries. By being vigilant and taking steps to verify the authenticity of documents, organizations can help to prevent fraud while offering more convenience and enjoying the cost-savings of digital transformation.

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Nicos Vekiarides

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Attestiv provides authenticity and validation for digital photos, videos and documents using patented tamper-proofing blockchain technology and AI analysis. 

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Nicos Vekiarides

Nicos Vekiarides

Nicos Vekiarides is the Chief Executive Officer & co-founder of Attestiv. He has spent the past 20+ years in enterprise IT and cloud, as a CEO & entrepreneur, bringing innovative new technologies to market. His previous startup, TwinStrata, an innovative cloud storage company where he pioneered cloud-integrated storage for the enterprise, was acquired by EMC in 2014. Before that, he brought to market the industry’s first storage virtualization appliance for StorageApps, a company later acquired by HP.

Nicos holds 6 technology patents in storage, networking and cloud technology and has published numerous articles on new technologies. Nicos is a partner at Mentors Fund, an early-stage venture fund, a mentor at Founder Institute Boston, where he coaches first-time entrepreneurs, and an advisor to several companies. Nicos holds degrees from MIT and Carnegie Mellon University.

Mark Morley

Mark Morley is the Chief Operating Officer of Attestiv.

He received his formative Data Integrity training at Deloitte. Served as the CFO of Iomega (NYSE), the international manufacturer of Zip storage devices, at the time,  the second fastest-growing public company in the U.S.. He served as the CFO of Encore Computer (NASDAQ) as it grew from Revenue of $2 million to over $200 million. During “Desert Storm”, Mark was required to hold the highest U.S. and NATO clearances.

Mark authored a seminal article on Data Integrity online (Wall Street Journal Online). Additionally, he served as EVP, General Counsel and CFO at Digital Guardian, a high-growth cybersecurity company.

Earlier in his career, he worked at an independent insurance agency, Amica as a claims representative, and was the CEO of the captive insurance subsidiary of a NYSE company.

He obtained Bachelor (Economics) and Doctor of Law degrees from Boston College and is a graduate of Harvard Business School.