US Fake ID Research: Prevalence, Impact, and Opportunities

Here is a startling statistic that deserves consideration: nearly half of US adults aged 18-25 reported knowing someone who has successfully used a fake ID to gain access to age-restricted products or venues (45%).

Fake ID fraud is widespread among young adults in the United States, creating significant challenges for businesses when it comes to checking and verifying customer IDs, but also big opportunities for those who get it right. In our exclusive research, we set out to assess the scale and complexity of the US fake ID issue today.

About this research

This research report examines the sentiments and prevalence of fake ID usage among over 2,000 young adults US aged 18-25 across all 50 states. The survey was conducted in May 2024 and aims to uncover the extent of fake ID usage, where they are used, and for what — with insights into the behaviors of those currently underage (18-21), as well as those who recently have been (21-25).

Young adults seek fake IDs mainly to purchase age-restricted products, enter bars or nightclubs, and access other age-restricted venues. Fake ID usage poses reputational and financial risks, as well as operational challenges for a range of businesses.

A typical example is retailers and logistics businesses handling alcohol home deliveries. They need to comply with state regulations around age-restricted goods, and be sure of who they are delivering to (age and identity) and that the ID itself is valid.

A rapidly changing situation to manage

Delivery of alcohol to minors carries substantial legal ramifications and fines, even the business potentially losing the license to operate in that state and impacting revenue. With varied, new, and developing legislation, this is a major headache.

ID checks can also complicate or slow down operational workflows (i.e. delivery drop offs or curbside pickup), while adding to the burden of workers who need to conduct them, especially as fake IDs get more sophisticated. Businesses need to ensure workers have been effectively trained and have technology that supports them in these processes.

Conversely, a business with a robust, compliant ID verification approach can generate new revenue opportunities, create better customer experiences, win new licenses, or expand into different regions.

Here are a few key findings which showcase the scale of the problem:

• Usage: Not only have 45% reported knowing someone who has successfully used a fake ID, 30% of young adults admitted they have considered or purchased a fake ID themselves.
• Ease of acquisition: 71% of respondents believe obtaining a fake ID is ‘somewhat easy’ or ‘very easy.’
• Business impact: Fake IDs are used at liquor stores (56%), alcohol delivery (20%), and cannabis dispensaries (19%).

Here we have broken down fake ID usage by region in the temperature map below. The regions in red indicate a higher percentage of respondents who either have or are considering buying a fake ID.

The research shows clear regional differences exist in fake ID usage and ID verification perceptions. There are also some notable correlations seen between fake ID popularity, ease of obtaining them, and strict age-restricted delivery laws.

The data shows New England leads in under-21s considering fake IDs and also in the perceived ease of acquisition, while West North Central shows lowest interest. New England’s high fake ID usage (48%) correlates with its numerous colleges and strict laws. Florida and California, in the South Atlantic and Pacific regions respectively, also have strict regulations.

While state legislation is clearly just one factor behind usage of fake IDs, it illustrates the risks for businesses if caught out. This raises questions about the effectiveness of current laws and the need for businesses to implement additional ID verification measures.

We asked all respondents how easy they think it is for minors under 21s to obtain a fake ID — and the results were conclusive.

71% of respondents said it was either ‘very easy’ or ‘somewhat easy’ to acquire a fake ID.

Access to fraudulent documents is not a widespread barrier for those looking to purchase age-restricted products or access age-restricted venues while underage. In fact, only 7% of people feel it is ‘very difficult’ to buy fake identity documents.

We surveyed our respondents to ask them where fake IDs have been successfully used based on their personal experience.

It’s no surprise that bar/nightclubs come out on top as the most common usage for fake IDs, but the prevalence of fake IDs is creating some unique challenges for various business types.

Liquor stores

Liquor stores are among the most affected by fake ID usage. Our research indicates that 57% of those under 21 who have used a fake ID did so at liquor stores (and 56% of all respondents).

Liquor stores must ensure their staff are well-trained in ID verification techniques. There is often limited training, which leads to simple manual inspections of IDs, at best. In most scenarios, employees do not conduct authenticity checks.

Advanced ID scanning technology can significantly reduce the risk of fake IDs slipping through.

Alcohol delivery

Our research shows that over 25% of respondents under 21 who knew someone underage using a fake ID used it for alcohol delivery, while 30% of all respondents said they know of someone currently using a fake ID for alcohol deliveries.

Unlike bars or nightclubs which have been grappling with this issue for a long time and staff are more experienced in spotting them, tackling ID checks is still a nascent issue for delivery businesses and retailers selling alcohol for home delivery or pickup.

A growing challenge in a growing market

According to Statista, revenue at home (e.g., revenue generated in supermarkets and convenience stores) in the alcoholic drinks market amounts to US$184.1bn in 2024.

Fake ID usage creates a unique challenge for liquor retailers as orders prepared for pickup that fail manual ID checks can result in wasted resources and blocked stock. For quick commerce and grocery delivery businesses, failed ID verifications lead to additional delivery costs and further strain resources.

When delivery schedules (and profit margins) are tight, additional steps in the delivery process can create delays. This is exacerbated during peak delivery periods, where volumes increase and new or temporary drivers are employed.

Ultimately, for the likes of quick commerce businesses, the inability to tackle the fake ID issue could inhibit their ability to operate in certain states and limit their overall revenue opportunity.

The ease of obtaining fake IDs compounds this issue, as drivers now need additional training in spotting fakes or for the alcohol delivery businesses to implement more robust ID verification measures.

Other businesses affected by fake IDs

Our survey showed that many other business types had been the victim of successful fake ID usage in smaller numbers but with worrying implications and creating significant risk and potential damage to the business.

These included successful fake ID usage in the following areas:

• 19% at cannabis dispensaries: This number shoots up to 24% for those under 21, currently indicating a growing trend.
• 10% at pharmacy/drug stores: In a highly regulated sector, 1 in 10 committing ID fraud adds up to significant compliance concerns.
• 6% during car rental: Potential issues around identity of renters and disqualified drivers is a major risk for car and vehicle rental firms.
• 5% on delivery driver applications: Do businesses really know who they are employing, are they qualified/allowed to drive? Other potential issues include package theft and more.

Businesses in age-restricted industries must navigate the complexities of ID verification in their daily operations.

For some businesses, this encompasses many different processes and tasks, handled by different departments and workers, using different methods from manual to fully automated. This means small delays or added friction to typical processes involving age-checks can soon mount up to major operational headaches and inefficiencies.

But how effective do customers perceive these ID and age-verification checks to be?

We asked people to rate the overall effectiveness of the ID verification measures used in their states for age-restricted deliveries or purchase, in terms of thoroughness and accuracy.

The results were split as you’d expect covering diverse businesses and verification methods. However, 61% of people rated the effectiveness as ‘average’, ‘weak’ or ‘very weak’ — while only 13% stated that the current ID verification method’s effectiveness was ‘very strong’.

This indicates there is clearly significant room for businesses to make improvements here.

ID verification methods perceived effectiveness

To further understand where these improvements could be made, we asked people which validation methods they believed would catch the most fake IDs.

The data showed that the large majority of people are skeptical of the effectiveness of manual checking of IDs by eye, with just 14% believing it to be the best method.

• Technological solutions are regarded as more effective, with over half of people (51%) saying they believe ID scanning technology would be the most effective at catching fake IDs.
• A third of respondents (35%) believe a combination of human and technology would be the most effective method of ID verification.

Integrating ID scanning technology into ID verification processes, either to replace or supplement manual checks, is essential.

Valid ID rejection issues

Another interesting finding was that 1 in 10 people also stated they have had a valid ID rejected as fake by a business, which is damaging to the customer experience and has a significant business impact such as lost sales, time, and resources to fix the issues.

With increasingly sophisticated fakes and the need for quality training of often large numbers of workers in what to look for, technology enables businesses to increase the effectiveness of their checks at scale.

By verifying IDs at the point of order or entry and shifting the responsibility from individuals to technology, it minimizes human error and creates a more efficient and confident workforce that businesses can rely on to remain compliant.

ID verification software is far more adept than even the well-trained human eye and can check for hundreds of characteristics of a fake ID that are imperceptible to a worker. It also creates an audit trail for compliance reasons.

For example, Scandit ID Validate can scan and run various authenticity checks on an ID in less than a second on any camera-enabled device. It can also do this with no need for an internet connection with fraud checks ha

ppening on the device, essential for businesses operating in buildings or areas where internet coverage is not assured.

Get Hands-on: Try the Demo App

1. Scan the QR-code or click on the link to download the Scandit Demo App.
2. Open the app and go to “ID Verification”.
3. Scan your own ID or if you prefer, the sample ID provided here.

Our research highlights the widespread use of fake IDs among young adults in the US, particularly in the context of age-restricted products like alcohol.

With widespread usage of fake ID and regional variations in ease of acquisition and usage, businesses face considerable challenges and risk if they get it wrong.

But on the flip side, businesses who get this right can seize the potentially huge opportunities to mitigate business risk, protect their reputation, and boost compliance. There is also the chance to drive additional revenue streams and open up new regions, outmaneuvering competitors hampered by inefficient, non-compliant, or off-putting ID verification processes in customer-facing areas.

A call to action: Implementing effective measures

To more effectively prevent the use of fake IDs and protect themselves from legal and financial risks, businesses should:

• Develop policies: Establish strict ID verification policies, including regular audits and mystery shopper programs.
• Invest in technology: Implementing advanced ID scanning technology into ID verification processes can provide a higher level of accuracy and automation and reduce human error.
• Focus on training: Regularly train employees on the latest ID verification techniques, technology at their disposal, and the legal implications of selling to minors.

By understanding regional trends and investing in effective verification measures, businesses can better protect themselves from the risks associated with fake ID usage, while keeping operations running smoothly.

Robust ID verification is essential to ensure compliance, protect minors, and maintain a trustworthy reputation.

Let technology do the work

Deploying smart data capture ID scanning and verification technology, like ID Validate, into existing employee-facing apps and processes is a proven and accessible solution to age verification and combats the widespread use of fake IDs.

ID Validate is a fake ID detection software. It’s been designed with time-pressured workflows in mind to help businesses reduce friction and risk without compromising on efficiency and customer experience.

It can handle multiple ID document types such as US drivers’ licenses and state IDs and continually monitors changes to all ID types to update the parser and ensure the most reliable scanning results.