The $9 Fake ID Wake-Up Call: Why Every Business Needs Automated ID Verification

The recent seizure of online fake ID marketplace VerifTools by US and Dutch law enforcement highlighted once more how cheap and accessible fake IDs have become. It also underscores the extent to which they undermine security and trust.

Criminals could buy a fake ID on VerifTools for as little as $9, by simply uploading a passport photo and false details. The illegal platform provided counterfeit IDs for all 50 US states, along with fake identity documents from many other countries.

“The removal of this marketplace is a major step in protecting the public from fraud and identity theft crime.”

Phillip Russell, Acting Special Agent in Charge of the FBI Albuquerque Division

Yet what seems like a major coup for law enforcement may also have been something of a Pyrrhic victory. Within a day of the seizure of VerifTools … it was up and running again on an alternative domain name, according to The Hacker News.

A stark wake-up call for businesses relying on manual identity checks

The story of VerifTools is a stark wake-up call for any business relying on manual checks of identity documents—airlines, retail, delivery, auto, casinos, event venues, bars and clubs, pharmacies, hospitals, and more.

The FBI identified approximately $6.4 million of illegal proceeds linked to the site. Far from a few college students trying to get away with poorly copied driver’s licenses, today fake IDs are a major organized criminal activity.

“It became clear that VerifTools was a key hub in a criminal infrastructure.”

Dutch law enforcement agency Politie

From liquor stores to logistics fleets to car lots, the message is clear. Old-fashioned manual ID inspections are no match for what the New York Times recently described as the “unbeatable” fakes flooding the market—and the criminals determined to use them.

What is automated identity verification?

Automated identity verification is the practice of using technology, rather than manual inspection, to determine the validity and authenticity of an ID.

There are multiple technical approaches depending on industry, use case, and level of assurance required. Fake ID detection software uses AI to analyze hundreds of characteristics of a physical or digital identity document to determine whether the document is real or fake.

Even the highest quality fake IDs generally have tell-tale features that give them away. Many of these are invisible to the naked eye, but detectable by advanced machine learning algorithms that have been trained on millions of real IDs.

Fake ID detection software doesn’t require expensive database lookups for each transaction to confirm if an ID is authentic. Instead, it accurately detects fake IDs by identifying features that don’t match what would be expected of an authentic ID. Detection results are automatically and regularly compared against government data sources (such as the American Association of Motor Vehicle Administrators, or AAMVA) to ensure accuracy.

Automated fake ID detection software can authenticate IDs in as little as 1 second. It’s also more auditable than manual checks.

Here’s how it plays a part in three sectors where identity checks are indispensable—while operational efficiency and customer experience are equally important.

Age-restricted sales: The fake ID dilemma for retailers

30% of young adults in the US have considered buying a fake ID to purchase alcohol, cannabis, or tobacco.

Each illicit sale puts retailers at risk of fines of up to $50,000 per incident or even loss of their liquor license. Automated ID verification can catch fakes on the spot and keep stores compliant, while not introducing friction into customer experience.

Delivery: Ensuring and tracking compliance in a gig economy

Delivery companies can bake automated identity verification into their apps and workflows, ensuring compliance and creating an audit trail.

If full-time staff find it hard to spot fake IDs, imagine how much harder it is to ensure—and prove—compliance if your business relies on contractors. Limited or no training, greater time pressure, lower commitment, and lack of supervision all reduce the chances a delivery driver will correctly verify identity. One quick-commerce company lost its license in 2023 when accused of selling to minors in the Boston area.

Auto: High-stakes identity fraud

When customers drive away on a test drive or in a rental vehicle, every unverified ID could mean a stolen car.

A criminal gang in St Louis stole at least 19 vehicles worth more than $1.1 million using fake driver’s licenses, according to the US Attorney’s Office. Sometimes stolen vehicles are sold on. Other times, they’re used to commit further crimes—cars used as getaway vehicles, or stolen removal trucks covering for burglaries.

Automated identity verification can simultaneously capture license data and verify IDs, without the need for time-consuming full background checks.

Automated identity verification is a fast-growing market

Law enforcement will undoubtedly continue to do their best to stop fake IDs at source. The problem, however, is so prevalent that it demands both authority action and airtight identity verification at the point of presentation.

The truth is that manual identity verification methods have barely changed for thousands of years. Look at a document. Decide if it's real. Determine whether the person holding it is the owner.

Today, these manual identity checks are falling apart. That’s one of the reasons the global identity verification market is expected to grow from $12.5 million in 2025 to over $42.8 million by 2035.

To survive and thrive, companies now need to view automated identity verification as an essential part of their tech stack and a strategic asset that enables them to sell with confidence.

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