Voter ID Depicts Highest Tampering Rate In KYC Fraud, Says Report

In IDfy’s recently released report on KYC Risks in Lending, depicting patterns of fraudulent behaviour during onboarding procedures, it has been found that out of all the IDs accepted during loan applications, the Voter ID has shown to be forged the most with a 6.78 per cent fraud rate, followed by PAN Cards at 3.84 per cent, and Aadhaar cards at 3.11 per cent.

The report also highlights that 1 out of every 14 loan applicants attempted to deceive KYC checks and fraud detection systems.

Furthermore, the report reveals that 39 per cent of loan applicants have a mismatch between the name and the ID submitted, and 7.6 per cent of borrowers submit photos that fail IDfy’s liveness check.

This problem of document tampering and fraud is also widely prevalent in the employment and merchant onboarding space.

IDfy conducted field investigations that revealed a fake employment certificate with complete stubs and tax documents can be produced for as little as Rs 20,000.

This has enabled 14 per cent of loan applicants to lie about their employment status through fake documentation.

The report also uncovers that collection emails never reach up to 18 per cent of loan applicants who often utilise disposable email IDs.

Ashok Hariharan, CEO, and Co-Founder of IDfy, said, "The KYC risks report is our attempt to help the industry take a deeper look at managing their risk, combat fraud, and achieve regulatory compliance. With a better understanding of the pain points, lenders will be able to adopt the right solutions at the KYC stage itself."

The report has been prepared after analysing more than 80 million data points.