SPONSORED FEATURE

Passport Verification:
Is the person in front of you
who they claim to be?
Caution: Not all
illegal
identification
documents are
altered or
Forged or fake passports are used to falsified.
commit a range of financial crimes,
including identity theft, fraud, illegal Fraudulently
immigration and organized crime such as issued passports,
for example are far
the regional and international smuggling of harder to detect as
contraband.
they are not
Books, as some forgers refer to their trade, is
big business, with fake identification documents
increasingly being sold online. Although the
exact scope of passport forgery in Australia
remains unknown due to the high incidence of
unreported and undetected cases, the problem
is undoubtedly proliferating. As early as 2003,
national media reported 14 000 Australian
passports being lost or stolen in only five
months.
According to the Australian Institute of
Criminology (AIC), the cost of fraud to Australia
is in excess of $5 billion per year, and accounted
for 40% of Australias crime in 2005. The
estimated cost of identity fraud alone amounted
to more $1.1 billion per year by 2006*.
Identity theft and ID forgery are essentially
prerequisites for financial crime, making the fight
against forgery a top national priority, both from
a law enforcement and compliance perspective.
Financial institutions and businesses accepting
money deposits banks, law firms, asset
management house as well as online and landbased casinos are targeted by criminals on a
daily basis, making ID verification a critical first
line of defence.
Within the context of new client sign-up or
intake processes, the ability to instantly and
effectively verify the authenticity of identity
documentation in-house is key.

altered; just falsely

issued. Successful
verification
techniques thus
leverage a
combination of
security features,
technologies and
the MRZs
correlation to
personal data.

Verifying a passports
authenticity by eye is a
tough
task,
and
compounded by the fact
that
new
forgery
techniques are continually
developed to overcome
counter-forgery measures
employed during legitimate
passport production. The
secrets normally lie in
characteristics such as
watermarks,
special
security threads inserted
during
the
paper
production
process,
threads coated with ink
that react to ultraviolet
light, miniature plastic
disks embedded in the
paper, micro-line printing,
background
printing,
holograms and similar
reflective coatings.
Appraising passports
using
these
features
means staying abreast of
production techniques for
both
real
and
fake
passports
in
all
jurisdictions
concerned,
and is therefore simply not
practical. This challenge
gave rise to the adoption
of
an
international
passport
verification
standard, utilising the socalled Machine Readable
Passport Zones (MRZ)
format.

Developed by the International Civil Aviationknow your customer (KYC)

Authority (ICOA) and adopted by all membercompliance. The ability to
states, it is the globally recognised data display verify a sellers identity
and authentication format for all machine- documentation
readable passports and identity documentation. independently
enables
vendors to offer their
buyers
increased
transactional
security.
Identity verification:
Used in conjunction with
Protecting your business
the Australian 100-point ID
against reputational risk
check list, MRZ-based ID
Online traders and auctioning businesses, forand passport checking
example, are increasingly regulated in terms of enables online vendors to
38

offer their buyer base

peace of mind whilst
mitigating their business,
legal
and
potential
reputational risks.
Alleged
underworld
kingpin Fat Tony Mokbel
aka Stephen Papas, for
example, is not the sort of
client institutions would
want to be associated with.
Wanted by the authorities

MARCH 2009
MONEY LAUNDERING

ANTI-

SPONSORED FEATURE

Whats wrong
with this picture?
The second MRZ line of
Mokbels fake passport contains inconsistencies with the
passports input data, revealing
it as a forgery. The passport
number and control digit are
regular, yet the Date of Birth
doesnt have a control digit, and
the Expiry date is cited as the
Date of Issue again with-out a
control digit.
The lack of control digits in
the MRZ is a huge red flag; as is
the fact that the Expiry Date is
replaced by the Date of Issue.
He
was
fraud.
travelling
Effective
on
a
passport
falsified
and
ID
passport.
verification
A reward
is
of AU$1
therefore
million
vital
to
was
avoid
any
in
associatio
conne offered for
n
with
ction his
known
with arecapture,
he
financial
host ofand
criminals
crimes was
and their
rangin subseque
associates
g fromntly
arrested
in
. Using the
narcoti
Greece in
MRZ
cs
checking
traffick June
2007.
technique
ing
to
verify
and
Mokbels
The
murde
passport
r
toMRZ on
would
his
forger
have
y andfalsified
immediate
posse passport
ly raised
ssion didnt
suspicion,
correspon
of
should he
falsifie d to its
biometric
have
d
data.
(See
attempted
identifi
above)
opening
cation
an
docum
account or
Identit
ents,
conductin
y
Mokbe
g
a
l fledfalsificatio
deposit
Austra n plays a
transactio
lia forpivotal
n. Using a
role
in
Europ
two-in-one
e
inmost
online
of
2006. types

screen property
ing
to
the
solu- value
of
tion over
such $4.7millio
as
n.
She
Passp was
ortsentenced
Check to a 10would year
jail
have term after
highlig being
hted found
Papasguilty
of
crimin fraud
in
al
August
record 2005.
and Reportedl
high- y linked to
risk
several
associ other
ations. business
entities,
FightiParry may
ng be eligible
fraud for parole
throu after
gh serving
identi four years
(i.e.
in
ty
2009).

verifi
catio
n

In
2003,
former
princip
al of
Cairns
-based
Parry
&
More
Accou
ntants,
Elizab
eth
Heath
er
Parry,
was
charge
d by
Queen
sland
Police
with
27
counts
of
misap
propri
ation,
forger
y and
dishon
estly
obtaini
ng

Knowin
g

who

youre
dealing with
is

critical;

knowing
who theyre
associated
with

even

more

so.

Combining
instant
document
verification
and

risk

screening
processes
therefore
makes
sense from
a
commercial
risk
manageme
nt
perspective.

Pass
port
Verif
icati
on:
Som
e
best
prac
tice
reco
mme
ndat
ions

1 N
e
v
e
r
a
c
c
e
p
t
e
x
p
i
r

e
d
d
o
c
u
m
e
n
t
a
t
i
o
n

i
t

s
n
o
t
v
a
l
i
d
a
n
d
t
h
e
r
e
f
o
r
e
i
l
l
e
g
a
l
.

2 N
e
v
e
r
a
c
c
e
p
t
a

d
a
m
a
g
e
d
,

l
a
t
o
r
y
g
u
i
d
e
l
i
n
e
s
,

d
e
f
a
c
e
d
o
r

o
r

a
l
t
e
r
e
d

r
e
f
e
r
t
o

d
o
c
u
m
e
n
t
.

t
h
e
U
s
e
f
u
l

3 O
nl
y
ac
ce
pt
cl
ea
r
pa
ss
po
rt
ph
ot
os

fol
lo
w
y
o
u
r
d
o
m
e
s
t
i
c
r
e
g
u

L
i
n
k
s
b
e
l
o
w
.

4 M
R
Z
ar
e
ge
ne
rat
ed
ba
se
d
on
us
er
su
b
mi
tte
d
d
a
t

b
e
s
u
r
e
t
o
ty
p
e
al
l
d
a
t
a
in
c
o
rr
e
ct
ly
t
o
p
r
e
v
e
n
t
d
el
a
y
s,
f
al
s
e
al
a
r
m
s,
a
n
d
ti
m
e
a
n
d
r
e
s
o
u
r
c
e
e
x
p
e
n
di
t
u
r
e
.

5 Al

w
ay
s
try
to
ge
ta
cl
ea
r
co
lo
ur
co
py

f
a
x
e
d
c
o
p
i
e
s
n
o
t
r
e
c
o
m
m
e
n
d
e
d
,
e
v
e
n
i
f
t
h
e
y
a
r
e
c
e
r
t
i
f
i
e
d
b
y
t
h
e

p
o
l
i
c
e
o
r
a
c
o
m
m
i
s
s
i
o
n
e
r
o
f
o
a
t
h
s
.

6 B
e
w
ar
e
of
el
ec
tro
ni
c
pa
ss
po
rt
a
m
en
d
m
en
ts

a
l
w
a
y
s
s
c
r
u
t
i
n
i
z
e
t
h
e

M
R
Z
f
o
n
t
f
o
r
d
e
vi
a
ti
ANTI
MON

o
n
s

n
d
a
r
d

f
r
o
m

f
o
n
t
s
.

t
h
e
s
t
a
EY G
LAU
NDE
RIN MARCH 2009

39

SPONSORED FEATURE

u
r
e

N
e
w
p
a
s
s
p
o
r
t
v
e
r
i
f
i
c
a
t
i
o
n
t
e
c
h
n
o
l
o
g
i
e
s
a
n
d
t
h
e
f
u
t

One of
the
MRZs
key
strengt
hs lies
in the
fact
that it
provide
s
a
global
standa
rd for
how
passpo
rt data
is
visually
presen
ted.
Althou
gh
technol
ogical
and
biomet
rical
measu
res are
increas
-ingly
employ
ed to
help
fight
passpo
rt and
ID
forgery
,
the
MRZ
will
continu
e
to
serve
as
a
standa
rd
visual
format
and
first
line of
defenc
e
against
identity
fraud
and
associ
ated
crimes.
The

followi
ng are
examp
les of
new
and
compl
ement
ary ID
verifica
tion
techno
logies:

Th
e
Au
str
ali
an
De
pa
rt
m
en
t
of
Fo
rei
gn
Aff
air
s
an
d
Tr
ad
e
sta
rte
d
int
ro
du
cin
g
a
ne
w
bio
m
etr
ics
ba
se
d
e
Pa
ss
po
rt
in
lat
e
20
05
,

wit
h
the
$6
2
mill
ion
S
ma
rtG
ate
pa
ssp
ort
ch
eck
ing
sys
te
ms
bei
ng
roll
ed
out
at
Au
str
alia
n
air
por
ts
dur
ing
20
07
an
d
20
08.

In
Eur
op
ea
n
co
unt
rie
s
suc
h
as
Ge
rm
an
y
an
d
the
UK
,
Ra
dio
Fre
qu
en
cy
Ide

ntif
ier
(R
FI
D)
tec
hn
olo
gie
s
ar
e
als
o
cur
re
ntl
y
bei
ng
im
ple
me
nte
d.
Bi
om
etri
c
dat
a
is
em
be
dd
ed
in
a
ra
dio
chi
p,
ad
din
g
an
ad
diti
on
al
lay
er
of
se
cur
ity,
an
d
en
abl
ing
on
esw
ipe
ver
ific
ati
on.

Si
mil
arl
y,
th
e
Un
ite
d
Ar
ab
E
mi
rat
es
(U
AE
)
ar
e
im
ple
m
en
tin
g
iris
sc
an
nin
g
ca
pa
bili
tie
s
at
air
po
rts
to
m
atc
h
pa
ss
po
rt
da
ta
ag
ain
st
bio
m
etr
ics
.

Vis
it the
below
links to
find
out
more
about
new
docum

ent Check
for http://w
ma ww.wor
ts, ldbes check.
com/pa
t
ssportpra check/
ctic
e Instant
an webd based
adv ID and
anc passpo
ed rt
pas verifica
spo tion
rt service
veri for all
fica types
tion of
tec machin
hni equ readab
es:
le
(MRZ)
identity
Us docum
ef ents.
ul Combi
Li nes
nk docum
s ent
verifica
Au tion
str and
ali risk
an screeni
Pa ng
ss against
por
Worldt
Check
Ph
oto s risk
graintellig
ph ence in
Gu one
ide step.

lin
es Austra
htt lian
p:// ePass
ww port
w.p Inform
ass ation

por http://w
ts.g ww.pas
ov. sports.
au/ gov.au/
We Web/e
b/R Passp
eq ort.asp
uir x
em
ent
The
s/P
hot Counc
os. il of
asp the
x EU

Gloss
Pa ary of
ss Securi
porty
t- Docu

ments
http://
www.c
onsiliu
m.euro
pa.eu/
prado/
EN/glo
ssaryP
opup.h
tml

H
o
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s
p
o
t
a
f
a
k
e
p
a
s
s
p
o
r
t
u
s
i
n
g
t
h
e
M
R
Z

1 F
o
r
g
e
r
s
o
f
t

en
fals
ify
per
son
al
dat
a
suc
h
as
the
D
a
t
e
o
f
B
i
r
t
h
,
D
a
t
e
o
f
E
x
p
i
r
y
,
P
a
s
s
p
o
r
t
N
u
m
b
e
r
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r
e
v
e
n
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h
e
b
e
a
r
e
r

s
s
e
x
o
n

t
h
e
p
h
o
t
o
p
a
g
e
.

2 Ex
per
ien
ce
sh
ow
s
mo
st
for
ger
s
do
not
adj
ust
t
h
e
fi
g
u
r
e
s
o
f
t
h
e
M
a
c
h
i
n
e
R
e
a
d
a
b
l
e
Z
o
n
e
(
M
R
Z
)
t
o
r
e
fl
e
c
t
t
h
e

newatio
datans
in
.
the
3 C up
per
h par
e t of
c the
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i
um
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w
i
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h
a
n
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cons
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ve
and
only
confi
rms
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calc
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on
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4 A
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a
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5 In
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4R

W
orldCheck
s risk
intellig
ence
and
tools
such
as
Passp
ortCheck
, an
online
ID
checki
ng
and
risk
scree
ning
servic
e, find
direct
applic
ation
in
compli
ance,
fraud
preve
ntion,
identit
y
authe
nticati
on
and
backg
round
scree
n-ing
practic
es.
Visit
http://
www.
worldcheck.
com/p
asspo
rtcheck/
or
email
conta
ct@w
orldcheck.
com
for
more
inform
ation.
C ANTIH MONEY
20 LAUNDERI
NG
09