Detecting Fake IDs at the Point of Sale

Without personally knowing every customer who visits your store, it's not always possible to prevent credit fraud, especially when a fraudster uses a false identification. Your sales and credit teams are the first line of defense against the use of fake IDs. To build your staff's awareness and knowledge of the use of fake IDs, develop written procedures to follow in the credit application process and make sure your personnel are trained on those instructions. Also share the following tips on recognizing fake IDs. The information relates to driver's licenses, since they are most often used to verify identity.

General steps to follow

• Make sure your staff understands that just because a customer presents an ID doesn't mean that the ID is legitimate, or that it is even the customer's ID.
• We recommend that anyone applying for credit in your store should be asked for at least two forms of identification, with at least one picture ID such as a driver's license, passport, or state-issued ID. Secondary forms of identification might include:
  • A credit card
  • An employer-issued ID, student ID, or voter registration card
  • An official billing statement such as a utility bill or a property tax bill
  • A Social Security card
• Instruct your staff to closely examine a customer's ID. If you receive any comments or complaints, tell customers that your employees are trying to protect both the store and its customers.
• People who create fake IDs are prone to make mistakes, may be sloppy, and may not even know the details on what a particular state's driver's license is supposed to look like. As a result, it may be possible to spot a fake ID. Consider making a magnifying glass available to your staff so they can closely inspect customers' IDs.
• Use the internet or an alternative resource such as I.D. Checking Guide to find a copy of the driver's license format (both sides) used for the state in which your store is located. Your state may have more than one format.
  • Make a copy of the format(s) and post it near where your staff takes credit applications.
  • Ask your staff to hold a credit applicant's picture ID up next to the posted example to confirm that the applicant's ID has the correct format.
  • If you consistently see driver's licenses from one or more other states due to your location, train your staff to recognize each license format they could expect to see.
• Consider making a copy of a credit applicant's picture ID. This process alone may deter some fraudsters from applying for credit. Please note, however, that some states prohibit making a copy of another person's driver's license. To determine your state's policy, contact the Department of Motor Vehicles in your state.

How to examine a driver's license

• Ask the customer to take the ID out of his or her wallet or purse for closer examination. This request will immediately reveal if the ID is just a copy of the front and does not have the proper back.
• Know the format and appearance of your state's driver's license. Then ask yourself questions that may reveal tampering or fraud, such as:
  • Is the background of the ID correct? Does the color deviate from the color from a real ID?
  • Should a state seal or logo be present on the card? If it is missing or appears altered, the ID may be a fake.
  • Should there be a bar code on the ID and, if so, is it positioned where it should be?
• Individual states have their own particular names for their state driver's licenses. These names range from Auto Driver License, DL, Driver License, Driver's License, Operator License, and so on. Know the official name for your state's license.
• Some states have codes built into their license format. Is there a code in your state's license format, such as License number format? It may be difficult to find the answer since police authorities may not want to divulge their codes to protect against fraud. A good resource is the I.D. Checking Guide.
• Look at the card's expiration date. Know how long a driver's license is valid in your state, and compare that information with the one you are examining. An expired driver's license should not be accepted as proper identification.
• Confirm that the name, address, and applicant age on the driver's license is exactly the same as that printed on the credit application. Does the signature on the driver's license match the signature on the credit application? Do you detect any misspellings?

Comparing the customer to the ID

• Examine the picture. Does it look legitimate? Does it match the background of license IDs for that state?
• Check to see if the picture on the ID matches the customer who presented the ID to you. Does the customer's height and weight appear to match that stated on the ID? Does the customer's hair color and hairstyle match the photo on the ID?
• Look at the person's clothes. If the customer is wearing the same clothes in the store as he or she appears to be wearing in the picture, the ID could have been made the same day and could be a cause for concern.
• See if the customer appears to be the same age as the person in the ID. If there is a question, ask the customer his or her birth date and, after calculating the age based upon the birth date on the ID, how old he or she is. Sometimes impostors will memorize the dates of birth of their fake IDs, but not their supposed ages.

What to do if you're suspicious

Go through the following steps if anyone in your store suspects fraud.

• Try to validate all of the customer's information. Ask to see his or her government-issued identification, question his or her age and address, and examine his or her signature. Check the customer's home address and home phone number using directory assistance or a free online service.
• Contact the Wells Fargo Retail Services Fraud Team at 1-800-257-7799 (Monday – Friday, 8:00 am - 7:00 pm Central Time) and advise us of your concerns. We can speak with the customer to confirm his or her identity. If you cannot reach us, delay a pending sale until identity confirmation can be made. We recommend that if you must delay a pending sale, be honest with your customer by explaining to him or her that due to the proliferation of identity theft, your policy is to verify identity in credit situations.

Regardless of your own findings, under fair lending laws, you must submit all credit applications to Wells Fargo Bank, N.A. for a decision. If you believe that an application is fraudulent, or suspect that it may be, call our Fraud department. We will analyze the applicant's information and credit bureau report.

Contact us

By phone: 1-800-257-7799, Monday – Friday, 8:00 am - 7:00 pm Central Time
By fax: 1-800-499-2567
By email: frauddept@wellsfargo.com

Note: The points above are suggestions rather than requirements. Following any or all of the suggestions does not relieve a dealer of fraud liability.

Some of the information mentioned in this article was obtained from BankersOnline.com.