Identity is an important part of the title insurance process. As essentially the first step in preventing title fraud, knowing that parties in the transaction are who they say they are helps stop fraudsters from stealing the proceeds of real estate transactions. With that being the case, it raises the question: Why does the typical validation process have so much room for error?
The Problem With Current Title Company ID Validation Technology
Consider what the identity validation process for most title insurance companies looks like. It’s fairly straightforward: In most cases, the title officer will visually examine the ID and either manually record it or take a photocopy of it. If the company requires you to go through a notary (not all do), the process will look pretty much the same.
Given the relative simplicity of this process, you might think that the vulnerabilities would be few and far between. The truth is, it’s chock-full of weak points that can be exploited by fraudsters. With identity theft cases reaching 1.1 million in 2022 alone, these issues can’t be ignored.
Let’s start with the ID. If the only verification being performed on an ID is a person conducting a visual check, this leaves the door wide open for fake IDs. After all, fake IDs are so real in appearance, and there are so many issuers and license types that it is next to impossible to do better than a coin flip.
What’s more, when you add emailed documents into the mix, title fraud actually becomes easier. Fraudsters can gain personal information via phishing and use it to create fake IDs. Because title companies require a significant amount of personal information from applicants, any potential for data leakage can be disastrous.
Despite these flaws, most title insurance companies still use this relatively dated process to verify people’s identities. But the fact is, it’s neither easier nor cheaper to take this approach. And identity fraud is only becoming more sophisticated and difficult to spot. Now is the time for title companies to proactively improve their validation process.
How to Prevent Title Fraud With Intellicheck’s Identity Document Validation Technology
Here’s the bottom line: Digital identity document validation technology increases security and convenience because it more reliably identifies fakes and better aligns with user expectations and capabilities.
Intellicheck’s identity validation system uses the latest in verification technology to prove the ID is real. Unlike human validation, which is highly susceptible to human error, Intellicheck can accurately validate almost every ID you encounter in the U.S. and abroad without holding up any transactions.
Intellicheck customers also benefit from unmatched speed, with smartphone-scanned IDs receiving verification in less than a second. It streamlines the entire process, allowing for a better experience for consumers and title insurers.
Despite all of this, some might be nervous about adopting a new, potentially disruptive system into their process. Fortunately, Intellicheck fits where you need it, is virtually frictionless, and requires very little process change — while providing significant process assurance from adoption. What’s more, as of May 31, 2023, and using the median U.S. house price of $436,800, we have stopped $45.43 million in potential losses.When you consider that, the switch seems like even more of a no-brainer.
Title companies can choose when to check IDs at any point within the real estate transaction closing process. It can be done from day one, with the ID check, or it can be done all the way at closing — whatever works best for each company. It requires no special technology (just your existing phone or tablet) and can be ready to go quickly. It’s as simple as downloading an app and setting up an account.
Implementing Intellicheck into the closing process will safeguard your operations against title fraud.