Identity fraud has become a pervasive threat in the UK, now linked to 64% of all fraud cases. In 2023 alone, there were 237,642 reports of identity fraud, with 77% of cases involving impersonation. Despite the significant financial losses—totalling £4 billion annually—fraud continues to receive minimal law enforcement resources, with only 1% of police funding dedicated to addressing it. This alarming rise in identity-related crimes leaves businesses exposed to various risks, from regulatory compliance challenges to operational disruption and reputational damage.
As fraudulent techniques evolve, businesses of all sizes must adopt proactive measures to protect themselves. This was the key theme discussed with our partners during our recent webinar, featuring Kelly Pugh, Head of Product at Giant Screening, and Tony Machin, CEO of TrustID. The session, which you can watch on demand, explored the critical role identity verification plays in safeguarding organisations and provided actionable insights on how businesses can stay ahead of increasingly sophisticated fraudsters.
Key trends in fraudulent documents: What you need to know
The trends in fraudulent documents over the past two years (October 2022 – September 2024) paint a worrying picture. According to TrustID data, passports remain the most commonly falsified documents, accounting for 49% of fraudulent cases, followed by ID cards at 29%, driving licences (11.1%), BRP cards (9.1%), and visas (1.8%).
While BRP cards are no longer accepted for Right to Work (RTW) checks, they remain in circulation and can still be used to support DBS checks as a secondary document. The increasing use of Irish passport cards is particularly concerning, with every one of these documents now checked manually by a human expert to ensure authenticity.
The rise of fraudulent activity is not just as a result of UK documents. Irish documents now account for 33.3% of the fake documents TrustID has encountered, up from virtually none just 18 months ago. Other nationalities TrustID frequently see include Portugal (6.5%), Italy (4.7%), and France (2.8%
This surge in counterfeit documents, including passports, highlights the urgent need for businesses to move away from manual document checks, which can be more prone to error. As Tony noted, “People think passports are very robust documents, but we’re still seeing a lot of fraudulent ones—especially when they’re out-of-date and used in manual checks.”
Share code fraud and imposter crime: A growing concern
As digital verification schemes like Right to Work become more widely adopted, there has been an alarming increase in share code fraud, where fraudsters sell or misuse legitimate share codes to bypass employment checks. Since October 2022, TrustID’s systems have identified a sharp rise in these incidents. Tony noted, “There is a trade happening now in share codes, with illegal workers buying these codes to bypass verification.”
To tackle this, biometric verification processes have become a crucial layer of security. By capturing a selfie during the identity verification process and comparing it with the Home Office share code output, businesses can ensure that the person presenting the code is the rightful holder. This extra step significantly enhances compliance and helps detect imposters, safeguarding businesses from the risks of employing illegal workers.
The real-world consequences of failing to act
The financial implications of identity fraud are staggering. UK businesses face an annual loss of £4 billion due to identity theft, and the maximum fine for employing an illegal worker stands at up to £60,000 per worker. But the costs are not just financial. Failing to verify employee identities can severely damage a company’s reputation, both internally and externally, as employing illegal workers poses a risk not only to your business but also to the public, clients, and customers.
Moreover, employing illegal workers exposes businesses to heightened scrutiny from regulators, which can lead to further investigations and reputational damage. Tony shared a particularly striking example: a well-known restaurant chain that was publicly shamed for hiring illegal workers, leading to extensive media coverage and reputational harm.
Once a business has an immigration enforcement action taken against it, the case is shared with other government agencies, including HMRC. This can trigger further investigations, with authorities having the power to close down business sites while they investigate. Such actions lead to major disruption and can result in additional fines and penalties. As Tony warned, “It’s something you want to avoid at all costs.”
Why identity verification is crucial in today’s workforce
Traditional background checks that rely on candidate-provided identity documents alone are no longer sufficient. With the rise of remote work and digital hiring practices, businesses need to ensure that they are not inadvertently hiring individuals who are using false identities. This is where automated identity verification becomes a key component of any robust screening programme.
Digital right to work and DBS checks
Automated identity verification, particularly for Right to Work and DBS checks, provides a faster, more reliable way to verify employee identities while ensuring compliance with UK government standards such as GPG45. By automating these checks, businesses can confirm an individual's identity in seconds, using biometric face-matching technology, and eliminate the need for manual document verification.
Kelly Pugh emphasised the importance of embedding these automated checks into the candidate journey: “Digital checks and ID validation are crucial screening components. It’s all about ensuring the integrity of the screening process from the start.” These digital checks are especially beneficial for businesses with high employee turnover, as they reduce the time-to-hire while ensuring full compliance.
Inclusive verification for all nationalities
Digital checks are not limited to UK nationals. By leveraging Home Office share code integration, businesses can instantly validate the Right to Work status of non-UK nationals, streamlining the process and providing faster, more accurate results. This ensures that businesses are not only compliant but are also able to offer an inclusive digital journey for candidates of all nationalities.
Maximising security and efficiency with identity verification
The benefits of implementing automated identity verification go beyond fraud prevention. As Tony highlighted, it also reduces operational burdens. “For organisations with multi-site operations, digital identity verification reduces the training burden on hiring managers, ensuring that checks are consistently applied across the board.” By centralising the verification process, businesses can improve efficiency and reduce the time-to-hire without compromising security.
Additionally, Kelly Pugh emphasised the operational efficiencies that digital checks provide: “By embedding these checks into our screening process, we’ve not only combated fraud but also sped up traditionally slow processes, removing the need for employers to verify original documents themselves.”
The future: Portability of right to work checks
One of the questions raised during the session was about the potential future portability of Right to Work checks—allowing workers to carry their verified status between employers. While this is not yet available, Tony mentioned that discussions are ongoing, and large organisations like the NHS are piloting projects that may eventually allow for the reuse of these checks across different employers. However, widespread implementation of portable Right to Work checks is still several years away.
Staying ahead of identity fraud
As identity fraud becomes more sophisticated, businesses need to be proactive in safeguarding their operations. Implementing robust identity verification systems is no longer a luxury—it’s a necessity. By using advanced technology, such as biometric face-matching and automated document verification, businesses can not only reduce the risk of fraud but also improve operational efficiency and compliance.
For organisations looking to stay ahead of fraudsters, identity verification must be embedded into every stage of the screening process, ensuring that all employees are who they say they are before they ever set foot in the office.
