The Top 10  Most Difficult Countries for Identity Verification

The Top 10  Most Difficult Countries for Identity Verification

Download Report

    n-img-roi-cross

    Before You Go, Schedule Your Free Demo Today

    Valid Invalid number


    Note: Fields marked with an asterisk(*) are mandatory.

    n-exit-img-roi-cross

    Thank you for your demo request

    We appreciate your interest and look forward to discussing how our solution can meet your needs. Expect to hear from us shortly with scheduling details.

    Close

    AI-based IDV Can Effectively Curb Unemployment Insurance Fraud

    unemployment

    Throughout the United States, an emerging scam has taken the nation by storm. Unemployment Insurance Fraud, also commonly known as Unemployment Benefits Fraud, has been making headlines for months. Scammers are threatening the well-being of not just employers, but countless citizens as well by filing for fraudulent insurance claims. By exploiting overwhelmed governmental departments responsible for providing relief during the COVID-19 crisis, threat actors are determined to gain illegal monetary benefits. This fraud has reinforced the importance of employing robust identity verification systems, as confidential information in the wrong hands leads to disastrous consequences. 

    The majority of unemployment insurance crimes occur during the application stage, where claimants misrepresent their income, health records, or other personal information to gain access to cheaper insurance premiums. Identity theft was found to be the enabling crime that led to the rise of unemployment insurance fraud in the U.S. 

    How Major is this Crisis?

    Amid the COVID-19 pandemic, cases of identity theft soared to new highs. According to the Federal Trade Commission, complaints related to identity theft more than doubled between 2019 and 2020, reaching a value of 1.38 million. This tally also includes complaints made related to identity theft that caused unemployment insurance fraud. 

    What makes the situation more alarming is that numerous state-owned agencies, that were already understaffed or functioning with outdated technology and fraud prevention tools, were not prepared for this onslaught. The resulting chaos has caused companies to become overwhelmed with complaints, fines, and lawsuits. 

    To put things into further perspective, the state of Washington generally receives a few dozen fraudulent unemployment claims in a year. In March 2020, however, the state identified 122,000 claims from imposters. 

    The Latest Updates on Unemployment Insurance Scams

    • The Wisconsin Department of Workforce Development (DWD) issued a warning for U.S. citizens about a substantial increase in fraudulent unemployment insurance claims in March 2021. According to the DWD, the crime was being facilitated by a phishing attack originating from a fake account by the name “Wisconsin Department of Workforce.”
    • The Labor Department of Vermont disabled its online portal for unemployment insurance application in May 2021, after 90% of the initial claims had to be flagged due to fraudulent activity
    problem

    Scammers Use Mule Networks 

    Money earned through an unemployment insurance fraud scheme rarely flows directly to the perpetrator. Instead, fraudsters move the money through online accounts using individuals that have a legitimate U.S. bank account. This not only allows the scammer to conceal their identity but also makes it difficult for regulatory authorities to detect fraud and recoup the funds. 

    Additionally, digital wallets, mobile banking, and other money transfer apps have opened the gateway to new avenues for moving illegal funds around. These channels allow users to access accounts without appearing in person. As a result, the scammer successfully avoids cameras at ATMs, bypasses manual security checks, and commits the crime by concealing their true identity. 

    What is the Penalty For Unemployment Insurance Fraud?

    According to the U.S. unemployment insurance law, the following penalties are charged on fraudulent claimants:

    • Criminal prosecution, with fines and/or imprisonment
    • Mandatory repayment of fraudulently collected insurance benefits
    • Confiscation of future income tax refunds (rebates) 
    • Permanent loss of eligibility for unemployment insurance benefits
    fraud

    Implementing a Solution

    To file for false unemployment insurance claims, criminals use one of two techniques:

    • Take over existing identities 
    • Fabricate new identities using stolen identity details

    Worryingly, identity theft is just the beginning. Once fraudsters have successfully created an account using the stolen personal information, other forms of fraud quickly follow. This shows that by utilizing robust identity proofing mechanisms during the initial onboarding stage, government agencies and insurance companies can easily detect fraudulent players and suspicious identity details.

    Digital identity verification leverages state-of-the-art technology and artificial intelligence models to carry out multiple identity checks. By integrating an identity verification software, identity thieves along with false insurance claims can be effectively identified. Here’s how it works. 

    • The claimant fills out a form and provides their personally identifiable information for identity verification
    • They are then asked to present themselves online to provide proof of identity, using valid ID documents
    • The AI-powered identity verification software verifies the documents and checks for any signs of tampering or forgery. The image on the ID document is also matched against the face of the claimant to ensure they are who they claim to be
    • If the verification process is successful, they can proceed to avail the benefits within seconds

    The Added Value of Identity Verification

    By utilizing the services of an IDV service provider, organizations can minimize the surging threat of unemployment insurance fraud and keep threat actors at bay. During the initial identity verification process, the claimant is verified by authenticating not just official ID documents but also by collecting biometric data. Since biometric data is virtually impossible to replicate, it serves as a better defense mechanism. This way, even if a fraudster is filing for a fraudulent claim through an online channel, their identity can be identified and reported to authorities. 

    Key Takeaways

    • Unemployment insurance fraud has been on the rise in the U.S.
    • Identity theft was found to be a contributing factor to the rise
    • Governmental agencies are overwhelmed with fraudulent claims 
    • Identity verification solutions have the ability to authenticate claimants during the application stage, filter out fraudsters, and can potentially minimize this ongoing threat  

    Related Posts

    Blog

    5 Key Market Trends in Identity Verification

    The year 2020 has caused a dramatic shift in the business industry and our way of living.  The si...

    5 Key Market Trends in Identity Verification Explore More

    Blog

    AML Screening – Revealing the True Identities of Ultimate Beneficial Owners in Businesses

    Hiding the Ultimate Beneficial Owners (UBOs) behind a business is never a good sign. However, som...

    AML Screening – Revealing the True Identities of Ultimate Beneficial Owners in Businesses Explore More

    Blog

    Top 5 Reasons to Incorporate Identity Verification into Your Hiring Process

    From widespread layoffs to the urgency of hiring as soon as possible, the job market has drastica...

    Top 5 Reasons to Incorporate Identity Verification into Your Hiring Process Explore More

    Blog

    Online Age Verification Service: Children’s Digital Privacy amid COVID-19

    The meteoric rise in the adoption of digital technology has influenced every phase of modern huma...

    Online Age Verification Service: Children’s Digital Privacy amid COVID-19 Explore More

    Blog

    Top 5 Ways Minors Use to Dodge Age Verification Checks

    Protecting minors from the perils of the digital world is nearly impossible for businesses withou...

    Top 5 Ways Minors Use to Dodge Age Verification Checks Explore More

    Blog

    UK’s On-Demand Culture – Building Trust & Security with Digital ID Verification

    People across the world are spending more time on the internet ever since the pandemic struck the...

    UK’s On-Demand Culture – Building Trust & Security with Digital ID Verification Explore More

    Blog

    Why Do Freelancing Platforms Need KYC?

    Technological advancements came with several betterments for humans. Where every industry is bene...

    Why Do Freelancing Platforms Need KYC? Explore More

    Blog

    Wholesale or Retail CBDCs? Settling the Endless Debate

    The world is now moving towards digitisation at a faster pace than ever. The payment systems have...

    Wholesale or Retail CBDCs? Settling the Endless Debate Explore More

    Blog

    The Case Against Cryptocurrencies: Where is it Banned & What’s Causing the Crackdown?

    Cryptocurrencies have long been viewed as the core of illicit activities by numerous governments ...

    The Case Against Cryptocurrencies: Where is it Banned & What’s Causing the Crackdown? Explore More

    Blog, Online Marketplace

    Why age verification matters to online businesses?

    Identity verification services are fast becoming a business norm for companies that are enthusias...

    Blog

    Understanding Facial Identification: Face Verification vs. Face Recognition

    Many terms in the biometrics field are used interchangeably, particularly regarding facial verifi...

    Understanding Facial Identification: Face Verification vs. Face Recognition Explore More

    Blog, Fraud Prevention, Identity & KYC, Reg Tech

    Facial Recognition: Burgeoning Threat to Privacy

    The expanding use of facial recognition technology for ID verification, user authentication, and ...

    Facial Recognition: Burgeoning Threat to Privacy Explore More

    Blog

    NFT Trading and Money Laundering – How Shufti’s AML Screening Helps Combat Financial Crimes

    With revolutionary technologies and growing digitization, the digital version of artworks known a...

    NFT Trading and Money Laundering – How Shufti’s AML Screening Helps Combat Financial Crimes Explore More

    Blog

    Establishing trust in Open Banking through Identity Verification

    Over the last few years, open banking is becoming an emanated global trend. This rising trend is ...

    Establishing trust in Open Banking through Identity Verification Explore More

    Blog

    Top 10 AML Trends to Watch for in 2022

    In 2021, the increasing scope of regulatory sanctions has affected businesses globally. The use o...

    Top 10 AML Trends to Watch for in 2022 Explore More

    Blog

    The ‘What’, ‘How’ and ‘Why’ of Sanctions Screening | A Basic Guide

    International collaboration and cross-border transactions have become the norm in our interconnec...

    The ‘What’, ‘How’ and ‘Why’ of Sanctions Screening | A Basic Guide Explore More

    Blog

    Top Cryptocurrency Trends to Look Out for in 2022

    2021 has been a remarkable year for cryptocurrency as because of COVID-19 outbreak crypto industr...

    Top Cryptocurrency Trends to Look Out for in 2022 Explore More

    Blog, Online Marketplace

    12 Ways Identity Verification Services Helping Online Businesses

    The online marketplace has a culminating presence in the business world. Worldwide e-commerce sal...

    12 Ways Identity Verification Services Helping Online Businesses Explore More

    Blog

    How Optical Character Recognition Improves the Process of Identity Verification for Businesses

    Evolving technologies have created a competitive market where every business strives to optimize ...

    How Optical Character Recognition Improves the Process of Identity Verification for Businesses Explore More

    Blog, Reg Tech

    Shufti GDPR Review 2018: How we protected our clients from regulatory fines?

    Shufti stands out in KYC industry not only because of its highly customizable and global iden...

    Shufti GDPR Review 2018: How we protected our clients from regulatory fines? Explore More

    Blog

    Restricting Criminals from Exploiting Investment Industry with Shufti AML Screening Solution

    Investing the accumulated capital of investors in financial securities is the primary task of inv...

    Restricting Criminals from Exploiting Investment Industry with Shufti AML Screening Solution Explore More

    Blog

    The Importance of KYC Remediation to Prevent Financial Crimes

    If we talk about financial institutions including banks and their processes, one can freely argue...

    The Importance of KYC Remediation to Prevent Financial Crimes Explore More

    Blog

    OCR in Banking | Automating Data Extraction, Customer Onboarding, and ID Verification

    The global Banking and Financial Services Industry (BFSI) is one of the most heavily regulated an...

    OCR in Banking | Automating Data Extraction, Customer Onboarding, and ID Verification Explore More

    Blog

    The Power of Robotic Process Automation in the Banking Industry

    Entering into the fourth industrial revolution, business processes are shifted to the digital sph...

    The Power of Robotic Process Automation in the Banking Industry Explore More

    Blog

    Curbing Real Estate Crimes with AML Screening Solutions – How Shufti Can Help

    In course of history, money laundering has always remained most complicated issue for governments...

    Curbing Real Estate Crimes with AML Screening Solutions – How Shufti Can Help Explore More

    Blog

    The Expected No-Deal Brexit and AML/CFT Laws in the UK

    The current prime minister of the UK Mr. Boris Johnson made a statement that the UK should be rea...

    The Expected No-Deal Brexit and AML/CFT Laws in the UK Explore More

    Blog

    A Comprehensive Guide to AML Compliance [2020]

    Anti-money laundering (AML) laws are the primary target of regulatory authorities. These regimes ...

    A Comprehensive Guide to AML Compliance [2020] Explore More

    Blog

    Online Identity Verification – The Hallmark of Surviving the Digital Upheaval

    Embracing the digital world seems like entering uncharted waters where the challenges are novel, ...

    Online Identity Verification – The Hallmark of Surviving the Digital Upheaval Explore More

    Blog

    Enhanced Due Diligence – How to Identify and Deal with High-Risk Customers

    Business relationships always come with associated risks that require carefully implemented measu...

    Enhanced Due Diligence – How to Identify and Deal with High-Risk Customers Explore More

    Blog

    6 industry experts explain the role of KYC in cybersecurity

    Cybersecurity is no more limited to firewalls and antiviruses. It is protecting your system, empl...

    6 industry experts explain the role of KYC in cybersecurity Explore More

    Blog

    Optical Character Recognition (OCR) – Powering Shufti’s Document Verification

    Trust is a key factor when it comes to doing business or getting financial services from banks. A...

    Optical Character Recognition (OCR) – Powering Shufti’s Document Verification Explore More

    Blog

    Global Trade and Prevalent Crimes – How Shufti’s AML Solution Can Help

    International trade is exchanging services, capital, and goods across borders or territories, gen...

    Global Trade and Prevalent Crimes – How Shufti’s AML Solution Can Help Explore More

    Blog

    2 Factor Authentication: Businesses’ Secret Weapon Against Cybercriminals

    Passwords continue to be a low-hanging fruit for cybercriminals.  Approximately 15 million record...

    2 Factor Authentication: Businesses’ Secret Weapon Against Cybercriminals Explore More

    Blog

    AML Compliance – Addressing Financial Crime Challenges in the UAE’s Banking Sector

    The United Arab Emirates (UAE) is fast becoming the world’s most reputable financial hub, but the...

    AML Compliance – Addressing Financial Crime Challenges in the UAE’s Banking Sector Explore More

    Blog

    The ‘What’ and ‘How’ of Address Verification Service

    The rising number of chargebacks and other fraudulent activities has led organisations to develop...

    The ‘What’ and ‘How’ of Address Verification Service Explore More

    Blog

    KYC/AML Compliance – An Anti-fraud Mechanism for E-wallets

    As more and more countries had to enforce lockdowns because of the pandemic, remote working and d...

    KYC/AML Compliance – An Anti-fraud Mechanism for E-wallets Explore More

    Blog

    Shufti Beyond Borders – Customer Experience That Drives Results

    About Stanton Brooks Stanton Brooks is a global customer experience (CX) leader specializing in d...

    Shufti Beyond Borders – Customer Experience That Drives Results Explore More

    Blog

    Video KYC (VKYC) | Identity Verification and Fraud Prevention

    In the last few years, the verification industry has experienced remarkable expansion. As our tec...

    Video KYC (VKYC) | Identity Verification and Fraud Prevention Explore More

    Blog

    Breaking the KYC Remediation Cycle through a Risk-based Approach

    Banks have paid more than USD 30 billion over the past few years due to ineffective policies to c...

    Breaking the KYC Remediation Cycle through a Risk-based Approach Explore More

    Biometric Technology, Blog

    How Liveness Detection is an apt Answer for Facial Spoof Attacks?

    The world went haywire on the launch of the new iPhone X; well, to be honest, when does it not? H...

    How Liveness Detection is an apt Answer for Facial Spoof Attacks? Explore More

    Blog

    How Can You Make Your Onboarding Process Cost-Effective?

    The customer onboarding process can cost your business a fortune if it is complex. In the modern ...

    How Can You Make Your Onboarding Process Cost-Effective? Explore More

    Blog

    Cybersecurity vs User Experience – Knowing the Art of Balancing

    Several years of debate between cybersecurity and customer experience has driven most people craz...

    Cybersecurity vs User Experience – Knowing the Art of Balancing Explore More

    Blog

    Brexit to Change Sanction and Money Laundering Regulations in 2021

    In 2016, the United Kingdom decided to part ways with the European Union (EU). After its preparat...

    Brexit to Change Sanction and Money Laundering Regulations in 2021 Explore More

    Blog

    Anti-Money Laundering Screening – Enabling Financial Institutions to Handle Suspicious Activities

    Financial crime is becoming a global concern, yet it’s often tough to spot. That is why gov...

    Anti-Money Laundering Screening – Enabling Financial Institutions to Handle Suspicious Activities Explore More

    Blog

    Effective Sanctions Screening | A Guide for Compliance Professionals

    Sanctions are crucial in combating financial crimes and maintaining national and international se...

    Effective Sanctions Screening | A Guide for Compliance Professionals Explore More

    Blog

    Open Banking Trends & the Vitality of Identity Verification

    With rapid digitisation, open banking is becoming the new normal in the banking sector. Open bank...

    Open Banking Trends & the Vitality of Identity Verification Explore More

    Blog

    AML Screening – Securing Alternative Payment Market and Overcoming Prevailing Risk of Crimes

    Escalating demand for innovative, new, and robust alternative payment options across the world is...

    AML Screening – Securing Alternative Payment Market and Overcoming Prevailing Risk of Crimes Explore More

    Blog

    KYC Verification – The Significance of Identity Verification in the Telecom Industry

    Increasing smartphone usage throughout the world has accounted for large amounts of data being sh...

    KYC Verification – The Significance of Identity Verification in the Telecom Industry Explore More

    Blog

    The Evolution of Video KYC: Revolutionise the Fintech Industry

    FinTech encompasses financial organisations’ use of computing and communications tools to b...

    The Evolution of Video KYC: Revolutionise the Fintech Industry Explore More

    Blog

    Addressing Business Challenges Using OCR Scanner

    OCR text recognition is similar to how humans process and store information through reading. The ...

    Addressing Business Challenges Using OCR Scanner Explore More

    Blog, Online Marketplace

    Fraud Protection services for Online Retail Businesses

    Online Marketplace faces Chargeback issues Fraud Protection Services are an integral part of reta...

    Fraud Protection services for Online Retail Businesses Explore More

    Blog

    Video KYC – Ultimate Solution for Financial Institutions

    With social distancing becoming the necessity during the pandemic, more and more companies began ...

    Video KYC – Ultimate Solution for Financial Institutions Explore More

    Blog

    COVID Passports – Bringing Convenience to the Travel & Tourism Sector

    “Sorry, the earth is closed today.”  Tony Stark’s sarcastic dialogue became the worst possible re...

    COVID Passports – Bringing Convenience to the Travel & Tourism Sector Explore More

    Blog

    Reshaping Travel and Tourism with Instant Facial Recognition

    Few technologies have sparked much debate as much as facial recognition. Today, it is considered ...

    Reshaping Travel and Tourism with Instant Facial Recognition Explore More

    Blog

    The Truth Around DeFi Compliance – Bridging the Transparency Gap

    Financial markets around the world have seen increased popularity with the advent of decentralise...

    The Truth Around DeFi Compliance – Bridging the Transparency Gap Explore More

    Blog

    April 2023 Recap: Major AML Fines and Key Events

    With the world embracing digital transformation, scammers have adopted sophisticated strategies t...

    April 2023 Recap: Major AML Fines and Key Events Explore More

    Blog, Fraud Prevention

    6 Steps of Online Fraud Prevention for Businesses

    With the rapid development in the online retail industry and banking industry, there is an increa...

    6 Steps of Online Fraud Prevention for Businesses Explore More

    Blog

    Deepfakes: AI Fraud Attacks Require Even Smarter AI Countermeasures. Now.

    Verifying identities with advanced biometrics was already a challenge—then along came AI-generate...

    Deepfakes: AI Fraud Attacks Require Even Smarter AI Countermeasures. Now. Explore More

    Blog

    Build Trust and Secure Online Dating Platforms with Identity Verification Solutions

    Online dating scams, such as the one filmed in the recent Netflix Original documentary “ The Tind...

    Build Trust and Secure Online Dating Platforms with Identity Verification Solutions Explore More

    Blog

    The Definitive Guide to Anti-Money Laundering & Countering of Terrorist Financing

    In this modern globalized era, money launderers, terrorist financiers and other criminal elements...

    The Definitive Guide to Anti-Money Laundering & Countering of Terrorist Financing Explore More

    Blog

    A Detailed Insight into the Best Practices for Digital Currency Providers

    The world has seen an overwhelming rate of development in the cryptocurrency sector with Centrali...

    A Detailed Insight into the Best Practices for Digital Currency Providers Explore More

    Blog

    Online Dating Activities, Surging Crimes and Shufti’s IDV Solution

    Matchmaking is considered one of the oldest industries in existence, online dating is now having ...

    Online Dating Activities, Surging Crimes and Shufti’s IDV Solution Explore More

    Blog

    Identity Verification entails a lot more than customer verification

    Identity theft and digital fraud are on the rise. Cybersecurity is of essence for all the organis...

    Identity Verification entails a lot more than customer verification Explore More

    Blog

    Know Your Driver – Urgency of Identity Verification for Mobility service Providers

    Scams have been at the forefront whenever a new tool is made available. The same goes for ride-sh...

    Know Your Driver – Urgency of Identity Verification for Mobility service Providers Explore More

    Blog

    Antiquities Market – A Conduit of Money Laundering and Terror Financing

    Money laundering and terror financing through art and antiquities has been a concern of regulator...

    Antiquities Market – A Conduit of Money Laundering and Terror Financing Explore More

    Blog, Business Technology, Fraud Prevention

    How Identity Theft Protection Can Increase Your Profit!

    Identity theft protection is something that is not only a concern for ordinary users anymore. Bus...

    How Identity Theft Protection Can Increase Your Profit! Explore More

    Blog

    COVID-19 pandemic turning into a financial crime threat

    A few months back when the World Health Organization (WHO) declared coronavirus a “pandemic” it l...

    COVID-19 pandemic turning into a financial crime threat Explore More

    Blog

    Identification, Verification and Authentication – Cut from the same cloth

    The modern era of technology has brought so many frauds to light. The digitized world has urged b...

    Identification, Verification and Authentication – Cut from the same cloth Explore More

    Blog

    Cybersecurity vs User Experience – Knowing the Art of Balancing

    Several years of debate between cybersecurity and customer experience has driven most people craz...

    Cybersecurity vs User Experience – Knowing the Art of Balancing Explore More

    Blog

    How the US Aims to Fight Financial Crimes and Global Corruption in 2022

    2022 is looking like the year of change in the USA when it comes to combating illicit financial c...

    How the US Aims to Fight Financial Crimes and Global Corruption in 2022 Explore More

    Blog

    Biometric Identification revolutionizing the world in 2020

    Every day we come face to face with new technology innovations that leave us awestruck. From the ...

    Biometric Identification revolutionizing the world in 2020 Explore More

    Blog

    Curbing Real Estate Crimes and Hunting Down Russian Investors with Shufti’s AML Screening Solution

    The real estate industry has become attractive to money launderers in the same way it is to any l...

    Curbing Real Estate Crimes and Hunting Down Russian Investors with Shufti’s AML Screening Solution Explore More

    Take the next steps to better security.

    Contact us

    Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

    Contact us

    Request demo

    Get free access to our platform and try our products today.

    Get started