Over the years, it has become increasingly clear that fraud can originate much earlier than many businesses anticipate. For an organisation, it may begin at the very point where it accepts that an individual is who they claim to be. Based on industry insights, identity and document fraud are becoming increasingly sophisticated.
In South Africa, cases involving forged documents increased by 62% between April 2022 and April 2023, while impersonation fraud surged by 356% over the same period. Green ID books were also reported to be 500% more vulnerable to fraud than smart ID cards, contributing to a 34% fraud rate in 2023. More recently, although traditional document fraud declined by 73% in the first quarter of 2025, synthetic identity fraud increased by 153% year on year.
This raises an important question: if someone looks legitimate, provides apparently valid documentation and passes your checks, how confident are you that the identity they are presenting is genuine?
Trust Starts with Knowing Who You Are Dealing With
Every business relationship depends on trust, whether you are onboarding an employee, accepting a customer, assessing credit, dealing with a supplier or establishing a new business relationship, organisations need confidence that the information provided is genuine.
Identity verification helps establish whether an individual is who they claim to be. However, modern fraud can bypass individual checks, for example; IBM notes that deepfake images can alter documents and undermine KYC and AML processes, while deepfake video can impersonate executives and potentially bypass biometric verification.
Therefore, having a weak verification process may only expose fraud after an account has been opened, an employee onboarded, credit extended or a transaction completed. By having a multi-layered approach, organisations can reduce this risk and protect their business.
Six Identity Fraud Risks Businesses Should Know
- ID Fraud: When Someone Else’s Identity Becomes Your Problem
ID fraud involves the misuse of personal information to impersonate another individual or create an identity that does not belong to the person presenting it. For businesses, this can mean unknowingly dealing with a fraudulent customer, employee or business contact, creating financial, compliance and reputational risks.
- Account Takeover: When a Legitimate Account Falls into the Wrong Hands
Account takeover occurs when a fraudster gains unauthorised access to an existing account and uses it as the legitimate account holder. This can expose sensitive information, enable fraudulent transactions and compromise customer relationships. Rapid detection is essential to limiting the damage.
- Document Fraud: When Identity Evidence Is Manipulated
Document fraud involves counterfeit, altered or illegally obtained documents used to misrepresent an identity or support a fraudulent application. A copy of an identification document does not prove that the information is legitimate. Document verification can help identify inconsistencies before fraud progresses through onboarding, credit applications or employment screening.
- Biometric Fraud: When Technology Is Used to Fool Identity Checks
Biometric fraud attempts to deceive systems using physical characteristics such as facial features. As biometric technology becomes more common, fraudsters are finding ways to circumvent it. Organisations therefore need to consider how effectively their biometric processes establish that an individual is associated with a claimed identity.
- Authentication Fraud: When Verification Is Manipulated
Authentication fraud involves bypassing mechanisms used to confirm authorised access, including passwords, security questions, voice recognition and biometrics.
- Verification Fraud: When False Information Gets Through
Verification fraud involves manipulating checks used to confirm identity, information or eligibility. This can include false documentation, synthetic identities and other manipulated information designed to make fraudulent applications appear legitimate. Sophisticated fraud may have few obvious warning signs, making the strength of the verification process critical.
Staying Ahead Means Adapting
Verification processes that were once sufficient can become vulnerable as fraudsters develop new ways to manipulate identities and bypass traditional checks. Businesses should regularly review their verification processes and consider whether multiple sources of information can work together to strengthen their ability to identify inconsistencies and make more informed decisions before proceeding with a transaction, application or business relationship, before they progress.
MarisIT has protected South African businesses since 2006 through an all-in-one credit risk management solution. MarisIT’s WebServices platform provides access to credit scoring and vetting solutions designed to support critical business decisions, with a pay-as-you-go approach and no fixed contracts.
If your organisation wants greater confidence in the people and businesses it deals with, MarisIT can help put better information behind your business decisions. Contact the team to discuss how its credit scoring and vetting expertise can help protect your business.
