THEFRAUDPRACTICE PROTECTING THE BOTTOMLINE
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THEFRAUDPRACTICE PROTECTING THE BOTTOMLINE FRAUD TECHNIQUE: IDENTITY DOCUMENT VERIFICATION A technique data sheet presented by The Fraud Practice LLC.
THEFRAUDPRACTICE
PROTECTING THE BOTTOMLINE
Fraud Technique: Identity Document Verification
Author: David Montague
Identity Document Verification as a risk program technique ........................ 3
What is the market need that Identity Document Verification addresses ...... 4
How does Identity Document Verification work? ........................................... 4
Fraud technique strengths and weaknesses ................................................. 5
Where it falls into a risk program ................................................................... 6
Who/where is it desired in the market ........................................................... 7
Vendors offering Identity Document Verification ........................................... 7
Vendor approaches to Identity Document Verification .................................. 8
Practical application, integration, and complexity .......................................... 9
Appendix ..................................................................................................... 10
Intended solely for the entity who purchased this document and/or was authorized to obtain a
copy by The Fraud Practice, LLC.
THIS DOCUMENT IS CONFIDENTIAL.
This document including any transporting email, or facsimile are proprietary and confidential information
intended only for the use of the recipient(s) named above. If you are not the intended recipient, you may
not print, distribute, or copy this document. If you have received this document in error, please notify the
sender by return e-mail or facsimile and destroy this document and any transporting emails from your
computer.
This technique data sheet is sponsored by IDChecker (www.idchecker.com)
© The Fraud Practice 2014
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2 Technique Data Sheet — Identity Document Verification
THEFRAUDPRACTICE
PROTECTING THE BOTTOMLINE
Identity Document Verification as a Risk Program
Technique
Identity Document Verification helps organizations verify a person is who they say they
are. Modern services allow consumers to take a photo of their driver’s license, ID card,
passport, credit card, bank statement, bill or other document relevant for the transaction.
The consumer may also take a photo of themselves. Facial features are translated into an
algorithm and compared to the image on their ID card in real time. In many cases, vendors
also offer a service that can auto-populate sign-up forms through a photo of the ID or
statement.
Pre-transaction Transaction Post-transaction Fulfillment Reconciliation
Identity Document Verification
takes place pre-transaction
Identity Document Verification seeks to confirm relevant information to a user's identity that may
be required for KYC (know your customer), AML (anti-money laundering), and other compliance
requirements. It is often used by financial institutions, financial services businesses, and others
concerned with these regulatory requirements. It may also be used for businesses that are
granting credit, or selling age-sensitive goods or services. Many different types of merchants use
Identity Document Verification, although not on every single transaction. It is something to consider
for the cases where it can help drive increased revenue while keeping fraud down. These cases
include international transactions, and instances where a person cannot be effectively authenticated
and verified using traditional methods.
Many organizations have performed Identity Document Verification in-house by having consum-
ers fax in documents, but this is often a rudimentary version of the technique compared to ser-
vices available in the market today. Few organizations will be able to effectively spot forgeries,
and the majority of businesses do not have the equipment to decipher barcodes, symbols, and
codes. A third party provider can read and process customer’s documents, ensuring they’re not
forged and checking specific document details such as holograms, background printing and micro
text. Service providers may also add the security of facial recognition, ensuring the documents aren’t
stolen. Not to mention, being able to use a cell phone, tablet, or computer makes the process
more pleasant for the customer than having to fax or scan and submit their identity documents.
Risk Program
The Fraud Practice considers Identity Operational Tools
Document Verification to be a technique Fraud Tools
within a risk program’s operational tool kit. ID Doc. Verification
Strategic Tools
© The Fraud Practice 2014
CONFIDENTIAL
3 Technique Data Sheet — Identity Document VerificationTHEFRAUDPRACTICE
PROTECTING THE BOTTOMLINE
What is the Market Need that Identity Document
Verification Addresses?
Identity Document Verification has a focus on fraud prevention and is excellent for meeting
KYC, anti-money laundering, and other types of compliance, but it is also a sales conversion
enabler for merchants, allowing businesses to feel comfortable taking orders where normal
verification checks fail.
These orders can, for example, be related to good customers who cannot be verified through their
phone number or address, and international orders where verification methods typically common in the
USA are difficult, if not impossible. Using Identity Document Verification allows organizations to expand
their reach with a streamlined workflow similar for all markets instead of using a multitude of routines
and services. Identity Document Verification can also streamline the user’s experience, particularly on
mobile platforms.
Besides verifying customers who might not be reached by traditional checks, document verification with
facial recognition can be an excellent tool for select high-risk, high-price orders. Most fraudsters attempting
to use stolen information online are not in possession of the actual credit card and the person’s ID, and
asking for a photo can be a good deterrent. Even if they have these items, comparing their photo to the
one of the documents will make utilizing stolen credentials nearly impossible.
Channel Effectiveness
Online - web Superior
Identity Document Verification is most
efficient and needed on transactions Online - mobile Superior
where the customer is not present.
Point-of-Sale Average
Telephone Below Average
Mail Order Below Average
© The Fraud Practice 2014
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4 Technique Data Sheet — Identity Document VerificationTHEFRAUDPRACTICE
PROTECTING THE BOTTOMLINE
How does Identity Document Verification Work?
Any camera-equipped device is turned into a data capture tool, allowing consumers to take
photos of their ID cards, driver’s licenses, credit cards and passports. These standard docu-
ments are considered “core” documents and are widely supported.
Most vendors will also support “peripheral” documents such as bank and account statements, utility
bills, insurance cards, non-government issued identification cards, and similar. The vendor may also
offer the ability to create new templates to manage other types of peripheral documents that aren’t
already included.
The information is encrypted and processed in real time. A series of automated checks on the identity
document are performed to include forgery checks as well check-sums and consistency checks with
details in the document such as the Machine Readable Zone (MRZ). The MRZ contains information
that confirms data on a passport, such as date of birth, nationality, gender, and expiration date. In most
cases, verification takes less than a minute, and the consumer gets a smooth and pleasant online
experience.
Vendors may also offer manual document checks provided as a managed service, as well as facial
recognition and comparison checks to ensure the person providing the document is the true document
owner. The vendor may offer services with biometric checks such as facial recognition, which generally
look for involuntary movement and blinking to assure the person on the picture is an actual person and
not just a photo of another photo. The software extracts key features which are translated to an
algorithm to be compared to the algorithm for the photo on an identity document.
An additional benefit of Identity Document Verification is automated form filling features through optical
character recognition (OCR) that can help users sign up or fill out forms through a picture of their
documents instead of typing. Another benefit of OCR is pulling information from identity documents that can
be used for authentication with service providers’ partners, or through third party data integrations.
© The Fraud Practice 2014
CONFIDENTIAL
5 Technique Data Sheet — Identity Document VerificationTHEFRAUDPRACTICE
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Fraud Technique Strengths and Weaknesses
Identity Document Verification gives one fraud flow for many regions of the world. It is
excellent for complying with “know your customer” and anti-money laundering regulations,
and great for access to the unbanked, underbanked, and immigrant populations. The
technique can also be implemented very quickly. Although third party services make the
process of submitting an ID document as easy and streamlined as possible, it can be
perceived as somewhat intrusive, and works best when customers are invested in com-
pleting a transaction.
Fraud Technique Strengths
Rating
and Weaknesses
First Time Fraud Detection Above Average
Repeat Fraud Detection Average
Account Takeover Average
Application Fraud Above Average
Internal Fraud Below Average
Affiliate Fraud Below Average
3rd Party Fraud Detection Above Average
1st Party Fraud (Friendly Fraud) Detection Average
Sales Conversion (Enhance and Increase) Average
Monitoring Below Average
Where does Identity Document Verification fall into
a Risk Program?
Independent Multiple Partial Vertical Full
Tool Tools Solution Solution Solution
Identity Document Verification is a tool, used within a risk program for monitoring and
managing fraud pre-transaction. This is a global technique which can greatly facilitate
cross-border transactions.
© The Fraud Practice 2014
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6 Technique Data Sheet — Identity Document VerificationTHEFRAUDPRACTICE
PROTECTING THE BOTTOMLINE
Who/where is it desired in the market
Verticals drawn to Identity Document Verification include:
Those who do international business
Financial institutions, credit granting, financial services etc
Any business with KYC or AML requirements
High-dollar goods merchants
Person to person interactions such as Bed and Breakfasts
Vendors Offering Identity Document Verification
IDchecker were established in 2004 to verify identities through document verification for
legal and compliance requirements. The service has since expanded to improve the accuracy
and processing of personal information while serving as an additional step in the detection of
identity fraud. They have offices in the Netherlands, United Kingdom, and USA. Their StrongID
product performs automated verification and forgery checks on identity documents, including
extracting and pre-filling data into web forms with the option to include manual identity document
checks while biometric facial recognition and comparison can also be included through their
FaceLink product.
Jumio were founded in 2010 and have their headquarters in Palo Alto California, but the
company has offices in Europe and operates development centers in Linz and Vienna, Austria.
Their Identity Document Verification product, Netverify®, offers real-time ID verification of passports,
driver’s licenses, government issued ID cards, utility bills, insurance cards, and bank statements
from over 100 countries. It is used by financial institutions, e-retailers, and consumer marketplaces
to meet know-your-customer industry regulations and internal policies, reduce fraud and chargeback
costs in purchase transactions, and enhance trust and safety in online communities.
Company Service Information
Service Information Direct
Name Headquarters
URL
Haarlem, The Netherlands with a satellite
IDchecker www.idchecker.com
office in San Francisco, California
Palo Alto, California with satellite offices in
Jumio www.jumio.com
London, Linz, and Vienna.
© The Fraud Practice 2014
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7 Technique Data Sheet — Identity Document VerificationTHEFRAUDPRACTICE
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Vendor approaches to Identity Document Verification
IDchecker offers easy sign-up forms, document verification, and biometric authentication for
mobile and web transactions. Their focus is on reducing fraud and creating a smooth user
experience. They have three main products:
Easy Onboard™ captures data for sign-up forms and similar through the customer’s camera. It
processes personal data and any photos extracted from documents in real time, creating a
high-speed form filling experience for the customer.
Strong ID allows customers to upload their documents with a cell phone, tablet, or
computer, and verifies documents in seconds. If a manual review is required, the response
comes back in minutes.
FaceLink™ ties Identity Document Verification to biometric authentication through
cloud-based facial recognition. The service works in real time through creating an algorithm to
define facial features and comparing these to the image on the person’s ID card. FaceLink also
uses liveness detection to make sure the photo is of a real person.
Jumio offers payments and ID scanning and validation products for mobile and web
transactions. Their focus is on reducing fraud and increasing revenue through minimizing friction
in customer transaction. They have three main products:
FastFill captures data for sign-up forms and similar through the customer’s camera.
Netverify® offers real-time ID verification of passports, driver’s licenses, government issued ID
cards, utility bills, insurance cards, and bank statements from over 100 countries.
Netswipe® supports real-time credit card scanning and validation in online and mobile
checkouts.
Service Features and Coverage
Data Capture Biometric Facial Countries
Company Name Documents Accepted
and Autofill Comparison Covered
Core and Peripheral Yes (FaceLink –
IDchecker Yes 196
Identity Documents add-on to StrongID)
Core and Peripheral Yes (Included with
Jumio Yes 102
Identity Documents Netverify)
© The Fraud Practice 2014
CONFIDENTIAL
8 Technique Data Sheet — Identity Document VerificationTHEFRAUDPRACTICE
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Practical Application, Integration, and Complexity
Identity Document Verification is a technique merchants can put in place in less than 24
hours – in many cases in less than one hour – and it is considered not difficult to implement.
These services can be utilized by a merchant at any level.
Both IDchecker’s and Jumio’s products can be implemented into an existing mobile application
through a software development kit. Jumio also offer HTML5 for mobile.
For website use there is an application programming interface, or access through Time to Implement:
Short
iFrames. Both vendors offer a client portal.
Level of Difficulty:
Easy
Service Integration Information
Company Name Client Portal Integration Options Integration Time Technical Difficulty
Web—minutes (iFrame)
Web—API, iFrame
to hours (API), Mobile
IDchecker Yes Mobile—SDK Easy
SDK varies on level of
Client portal
integration
Web—API, iFrame
Jumio Yes Mobile—SDK, HTML5 Minutes to an hour Easy
Client portal
© The Fraud Practice 2014
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9 Technique Data Sheet — Identity Document VerificationTHEFRAUDPRACTICE
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APPENDIX
Company Service Information
Service Information Direct
Name Headquarters
URL
Haarlem, The Netherlands with a satellite
IDchecker www.idchecker.com
office in San Francisco, California
Jumio Palo Alto, California www.jumio.com/netverify
Sales Contact Information
Name Sales Person Phone Number Email Address
IDchecker Chris Montesanti 727-343-1430 chris.montesanti@idchecker.com
Jumio Ray Soriano ray.soriano@jumio.com
Regions and Channels
Name Regional Coverage Channel Effectiveness
IDchecker Global—196 countries Online, Mobile, POS
Jumio Global—102 countries Online, Mobile, POS
Company Service Information
Name Partners
IDchecker 192business.com, Experian, edentiti, Crif
Jumio IDology, Vodlo
© The Fraud Practice 2014
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10 Technique Data Sheet — Identity Document VerificationTHEFRAUDPRACTICE
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Coverage and Service Usage Information
APPENDIX
Monthly Minimum/
Name Coverage Customers
Volume Minimum
No minimums 2 of the world’s largest money
No set-up fees Global (196 transfer businesses. Market leader
IDchecker
No contract time countries) in temp agencies in
Pay per verification Europe.
Monthly plans for usage
license with volume caps starting
at $795 per month with 12 month Travelocity, Airbnb, Entropay, Pok-
Global (102
Jumio contract. Pre-purchase available erStars, 5 of top 10 consumer inter-
countries)
instead with minimum purchase of net companies in Silicon Valley.
1,000 documents (can be used at
any time)
Platforms and Documents Supported
Company name Platforms Supported Documents covered
Core (passports, national IDs etc) and peripheral
Mobile (iOS and Android), (account statements, bills, insurance cards etc)
IDchecker
Web identity documents. Will build a template for new
documents a client needs to process.
Core (passports, national IDs etc) and
Mobile (iOS and Android),
Jumio Netverify peripheral (account statements, bills, insurance
mobile HTML5, Web
cards etc) identity documents.
Technical Integration
Company name Integration Options Integration Time Technical Difficulty
IDchecker API or iFrame for web. Web — minutes (iFrame) to
SDK for Mobile hours (API), Mobile SDK Easy
Strong ID and FaceLink Also offers client portal varies on level of integration
API or iFrame for Web.
Jumio Netverify SDK or HTML5 for Mobile. Minutes to an hour Easy
Also offers client portal.
© The Fraud Practice 2014
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11 Technique Data Sheet — Identity Document VerificationTHEFRAUDPRACTICE
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APPENDIX
Service Method
Consumers are able to provide images of their identity document
and face for verification via web based and mobile platforms for
minimal friction. Relevant data is captured and pre-filled into web
forms while the identity document is checked for forgery and
IDchecker
inconsistencies. Optional features include manual review of the
identity document performed by IDchecker, third party data
integration to authenticate data on the identity document, as well
as biometric facial recognition and comparison with FaceLink.
The task of supplying identity documents is streamlined through
capture of the identity document or statement, as well as matching
a consumer’s face to the image in their Photo ID via a mobile app
Jumio
or web based interface. Data is recorded and filled into web sign-
up, check-out, or registration forms via Fastfill, while identity docu-
ments are data filled and verified as legitimate with Netverify®.
Service Description
StrongID performs automated verification and forgery checks on
identity documents, including extracting and pre-filling data into
IDchecker web forms with the option to include manual identity document
checks while biometric facial recognition and comparison can be
included through their FaceLink product.
Jumio offers real-time Identity Document Verification of
passports, driver’s licenses, government issued ID cards, utility
bills, insurance cards, and bank statements from over 100
countries. It is used by financial institutions, e-tailers, and
Jumio
consumer marketplaces to meet know-your-customer industry
regulations and internal policies, reduce fraud and chargeback
costs in purchase transactions, and enhance trust and safety
in online communities.
© The Fraud Practice 2014
CONFIDENTIAL
12 Technique Data Sheet — Identity Document VerificationTHEFRAUDPRACTICE
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APPENDIX
Services and options IDchecker Jumio
Regional Coverage 196 countries 102 countries
Automated and manual Identity Automated and manual Identity
Document Verification— Document Verification with
Offering Type
FaceLink adds biometric biometric facial recognition
component comparison
Mobile (iOS and Android) Mobile (iOS and Android)
Platforms Supported
Web Web
Mobile Capture Option Yes Yes
Web/Webcam Capture Option Yes Yes
i-Frame Solution Yes Yes
Data Capture and Prefill Yes Yes
Forgery Checks Yes Yes
Manual ID Check Option Yes Yes
Verifies Passport Machine Reada-
Yes Yes
ble Zone (MRZ)
Checks Passport Background Print /
Yes Yes
Micro-text
Hologram Check Yes Yes
Biometric Facial Comparison Yes (FaceLink) Yes
White Label or Integrate Document
Yes Yes
Capture into Mobile App
3rd Party Data Integrations Yes Partners only
Automated checks, seconds to
max two minutes. Manual Seconds to max 90 seconds,
Response Time
checks, minutes to maximum two including manual checks.
hours.
© The Fraud Practice 2014
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13 Technique Data Sheet — Identity Document VerificationTHEFRAUDPRACTICE
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FRAUD TECHNIQUE:
IDENTITY DOCUMENT VERIFICATION
A technique data sheet presented by The Fraud Practice LLC.
Intended solely for the entity who purchased this document and/or was authorized to obtain a copy by The
Fraud Practice, LLC.
THIS DOCUMENT IS CONFIDENTIAL.
This document including any transporting email, or facsimile are proprietary and confidential information
intended only for the use of the recipient(s) named above. If you are not the intended recipient, you may not print,
distribute, or copy this document. If you have received this document in error, please notify the sender by return e-mail
or facsimile and destroy this document and any transporting emails from your computer. For updates and modifications
to this document, please visit www.fraudpractice.com/Course-DataSheet-Issuer-Alerts.html
© 2014. The Fraud Practice, LLC. All Rights Reserved Subject to Terms of Use available at
http://fraudpractice.com/terms.html. The Fraud Practice LLC names and logo and all other names, logos, and slogans
identifying The Fraud Practice’s products and services are service marks of The Fraud Practice LLC. All other trade-
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