Document fraud tracking: a major way to boost customer experience and ROI

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According to the ESB, document fraud is currently the third largest criminal industry in the world. One of its main areas of activity? Credit fraud, which is responsible for billions of euros in losses for financial institutions, severe damage for individuals, and a source of financing for terrorism and organized crime. The increasing digitalization of uses, accelerated by the arrival of fintechs, pure players, and the health crisis, has opened up new opportunities for fraudsters. The fraud rate is 10 times higher online than it is offline.

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Banks have put in place a whole arsenal of solutions (KYC, document integrity checks, business rules, etc.) that enable them to eliminate 90% of upstream fraud. But to eliminate the remaining 10% that have a heavy impact on the business, and to adapt to the constant innovations of fraudsters, the fight is increasingly complex and costly. From photos taken with a smartphone to photocopies of pay slips sent by mail, the channels and formats of documents are multiplying. Collecting these documents, verifying their authenticity and consistency, while meeting requirements of regulators, requires ever more resources and skills, with no certainty of clearing fraudulent files.  

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‍Double whammy: the processes used often hurt the customer experience and sales cycle. Accustomed to smooth, fast customer experiences, prospects have little tolerance for having to send a document they know is authentic multiple times to comply with a bank's verification process. They also don't have the patience to wait weeks for an eligibility response. The result: a high risk of attrition to more agile competitors, and an experience that damages the brand's service image. 

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Figures: 

• Credit fraud could cause €45B in losses by 2023 according to Worldwide Partners Inc (WPI)
• Document fraud ranks as the 3rd largest criminal industry in the world, according to the ESB
• The risk of fraud is 10x higher online than offline 

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Table of content

CONCEPT AND ISSUES: The merciless world of document fraud

1. Did you say "verifiable document"?
2. There is the form of the document... and there is the content
3. Determining the consistency of documents with each other
4. Detecting fraud without compromising UX and operational efficiency

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SOLUTIONS AND BEST PRACTICES

1. Business know-how + expert technology: the winning combination against document fraud
2. A reminder: The traditional tools against document fraud… and their limits
3. Why use AI and ML to reinforce traditional tools?
4. Case study : The Carrefour Banking & Insurance case: less fraud, more ROI

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