Image fraud is a growing problem in the digital era. An estimated $4.7 trillion in image fraud hit the global economy in 2022, making it one of the biggest economic threats of our time.
For lenders and financial institutions, image fraud is especially troubling. A misleading check or pay stub can be enough proof to qualify someone for a risky loan. That’s why measures to detect image fraud are so crucial.
What is Image Fraud?
Image fraud is the manipulation of digital images with the intent to deceive. It gets used for illegal activities, such as forging documents or creating false identities. Fraudsters use Photoshop and other image-editing programs to alter photos and other digital files.
Common examples of image fraud
The most common type of image fraud involves falsifying and manipulating images of official documents like driver’s licenses, bank statements, and paystubs. They take a real document, perhaps a paystub showing that they make $20k a year, and then alter it to show they make $50k.
Other examples of image fraud include fabricating non-existent images, retouching photos, and splicing or photomontage.
How is Image Fraud Detected?
Detecting image fraud can be difficult and time-consuming, but steps can get taken to ensure accurate documents.
Professionals often do manual detection of image fraud with experience dealing with digital images. These experts use their training to spot discrepancies and anomalies in images. This detection method can work but is not particularly feasible, as it can take significant time and resources to check each image thoroughly. It’s also impossible for human eyes to notice everything.
Automated fraud detection software has become more advanced and can detect even the most subtle differences in digital images. Sophisticated algorithms compare the original image to a database of known images and look for discrepancies. Image fraud detection software saves time by quickly scanning hundreds or even thousands of images simultaneously. It’s also significantly more accurate than manual detection.
The speed and accuracy allow fraud detection software to find fraud early, minimizing losses. Banks, lenders, and other financial institutions can avoid costly mistakes by verifying documents before issuing loans or making investments.
Image Fraud Detection with Ocrolus
Ocrolus is a powerful automated fraud detection platform. It detects image fraud with the highest level of accuracy, reducing the risk of defaults and ensuring that more legitimate loans are approved. Our advanced machine learning algorithms get trained to detect anomalies in images like incorrect font sizes or logos.
Ultimately, it’s your choice to accept an image or not. Ocrolus provides the help you need to make that choice confidently. The platform provides lenders with clear visualizations and detailed information about the validity of every image. Ocrolus’ fraud detection solutions can get used for multiple loan types, including mortgages, small business loans, and consumer loans.
Ocrolus is developing a new feature that will instantly determine if loan application documents were created from downloadable templates, making our fraud detection capabilities even more robust. Early detection could save your business a significant amount of money.
Book your demo to speak with an Ocrolus fraud detection expert on protecting your business from image fraud and other fraudulent behavior.