6 Ways to Spot a Fake ID
(Plus 1 New Tool!)
By Steven Presley
Thanks in large part to a challenging real estate market, fraud is more rampant than ever in the title insurance and real estate industries. Title insurance professionals are often faced with the challenge of verifying the identity of the seller and/or borrower as part of an insured real estate transaction. Thus, it is more important than ever to be aware of some of the most common methods fraudsters use to impersonate an owner of real property.
Special care should be taken when the property to be insured is vacant land, or any type of land that is unencumbered by a mortgage or deed of trust (also known as “free and clear” property) – two transactions most susceptible to ID fraud, and a leading cause of title claims.
Think it can’t happen to you? It can – to even the most diligent title professionals. Taking the steps below and partnering with Doma Title Insurance, Inc. is your safest path to avoiding fraud in your settlement transaction. Here are some tips to avoid fraud or spot a potential fraudster who may try to use fake identification documents (IDs) – as well as a powerful new tool we are making available to our agents to give them even more protection.
1) Familiarize yourself with the different types of ID-embedded security
Many forms of government-issued IDs have built-in security features. Most forms of IDs will have embedded seals or holographic images of the person’s photo. Agents should familiarize themselves with their state’s standard form of identification.
In addition, by May 7, 2025, all states must comply with the Real ID Act, which requires a state-specific marking to appear on the front of an ID card. Such markings can include a gold star, black star, white star with a gold or black circle around the front side – or for California, a gold bear with a white star on the back side. Examples of such markings are provided below.
2) Check for alterations
There are many ways a fraudster can alter an ID. Agents should always check to see if the letters in the text of the identification are in alignment. Agents should also check the font types and sizes to make sure it is consistent throughout the ID.
In addition, IDs that have been altered can have unusually large photos to conceal the original photo. Check the picture and the person in front of you to see if the birthdate makes sense. If an obviously young woman is in front of you and presents an ID with a birthdate in 1922, stop that closing.
3) Ask for two forms of identification
Agents should consider the practice of requiring two forms of identification, preferably ones that have not been recently issued. The IDs presented should also be in color and not expired. Agents should always compare the IDs for any inconsistencies in the data, especially in the photographs and signatures used. The photographs should be clear and never the same in two separate IDs. If you have any suspicions about one ID presented, ask the party for a second one at the closing table.
Fraudsters may have one fake ID, but they rarely have two. When you request a second ID, the fraudster may say they need to go to their car to retrieve it. They are unlikely to return – and you have not only prevented a claim, but avoided an uncomfortable situation.
4) Ask questions concerning non-public personal information
Most fraudsters will not be able to answer questions related to the property. For instance, they may not know how much they pay in association assessments, or what type of improvements have been done to the property. In addition, fraudsters may not be able to produce documents beyond what is readily available in an online public records search. Agents should ask property owners to provide a copy of their monthly utility or credit card bills with the exact address, a copy of their settlement statement, and title insurance or homeowner’s policy as further proof of their identity as the true owner of the property.
5) Compare the ID to the actual person
Remain vigilant in cases where the title holder is a non-U.S. citizen residing abroad, asking a title agent to close using remote online notarization (RON).
In many jurisdictions that allow RON, agents are increasingly being asked by foreign parties to sign their mortgage or deed remotely, and to close the transaction without ever having seen the customer in person. The issue for most agents concerns the title holder’s inability to pass knowledge-based authentication questions (KBA) given their lack of any established credit history in the United States. Many RON providers have now been seeking the approval of title insurance underwriters to proceed with a RON signing while bypassing KBA for these property owners. Agents in any situation where they are being asked to bypass KBA should proceed with extreme caution.
Agents should make every effort to attend a RON session to verify that the person signing the documents matches the pictures on the forms of identification presented. It is also important to provide the RON service provider with all forms of identification, as most RON providers have alternative methods of verifying a person’s identity using biometrics. Look for other documents in the public records signed by the true owner and compare the signatures to flesh out a fraudster.
6) Use credible witnesses
Agents may want to consider the use of a credible witness affidavit. Although some underwriters, including Doma, do not require the use of the affidavit for title insurance purposes, the agent may want to obtain a witness’ testimony in the form of an affidavit which states they attended the RON session and confirmed the identity of the person signing the insured document. It is important for agents to select witnesses with whom they have existing relationships with to mitigate the self-serving nature of the document.
7) Use Intellicheck: Your new defense against ID fraud
Finally, as an industry leader in fighting fraud and stopping ID theft, Doma is pleased to offer our agents, at no cost, a new, powerful tool in their fraud-fighting arsenal: Intellicheck, Inc.
Intellicheck delivers on-demand digital identity validation solutions through an API-based solution that easily integrates into your systems and workflows. The tool can detect fake IDs 99.9% of the time. Last year alone, Intellicheck validated more than 100 million identities for top financial services, fintech companies, e-commerce, retail commerce, law enforcement and government agencies across North America.
Using the Intellicheck tool, you can use your clients’ mobile phone to confirm the validity of the IDs being presented at the closing of a Doma-insured transaction. Agents then download a verification document for their title file, confirming they took the extra steps needed to thwart fraud in their transaction.
For more information about Intellicheck and to get started on using this service, Doma agents can contact their Doma agency manager or email [email protected].
Not a Doma agent? Join our growing national network of independent agents and approved attorneys today to take advantage of this and many other exclusive benefits – email us at [email protected].
Steven Presley is Vice President, Underwriting Counsel for the Florida Region of Doma Title Insurance, Inc.