How A Fake ID Can Damage A Business

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You’ve seen it in movies and TV shows: fake IDs give mischievous kids backstage passes or access to otherwise restricted areas. Although the deception driving this act is often downplayed in shows and books, its real-world consequences are a lot more grievous–and even more so for businesses.

What looks like a harmless prank is actually a crime, often tagged as a misdemeanor although it can be a felony in some cases. Furthermore, the use of a fake ID in varying capacities can cause unimaginable problems for businesses.

If you’re curious about its possibly far-reaching effects, here’s how a fake ID can damage a business.

1. Damages the company’s reputation

Company IDs are trying their best to add security features because of this very threat. If your company issues something printed on paper, with potentially sensitive information printed on it, then you are inviting security issues to your premises. These kinds of identification are easy to copy and can damage the company’s reputation.

Entrepreneurs are well aware that building a trustworthy brand requires being truthful in all business aspects. This includes safeguarding access points to your company, whether it’s physical or otherwise. One example is a trespasser gaining access to your premises, who can then disable your systems or steal valuable items from your company.

Aside from the monetary value lost to such an attack, the larger problem is the association between your company as a high-risk entity. This erodes customer and investor trust and takes a long time to recover, if at all.

Despite being later identified as fraudulent, acts created under the fake IDs can damage your company’s image–a problem that’s hard to resolve and could cost the company a lot.

2. Risks of employee identity theft

Again, identity theft is not a joke. Protection development firm IdentityForce reports that millions of families suffer every year from scams and financial identity theft incidents. The surprising part, however, is that it can all snowball from something as simple as a fake ID.

This is the reason why some IDs, with the smart technology and innovation available today, are changing their identification processes. Some companies opt for the use of biometric scanners while some use specialized QR codes and terminal-compatible NFC cards, all in an attempt to reduce the risks of this from happening to their employees.

From birthdays and addresses, to contact numbers, an identification card is a treasure trove for malicious elements. Imagine the problem if the entire ID gets stolen and falsified for fraudulent activities.

One common example is having another person arrested for the crimes of another, simply because of an ID. Not only does it put your employees in a very bad spot, but it will most likely come back to bite the entire organization.

Although changing your existing IDs into something that has inherent security features might appear counterproductive and costly, try weighing it against the risks your outdated cards pose for your employees and your company. More importantly, it is important to reiterate company procedures regarding the care and management of these identification cards.

3. Legal and organizational problems

A persisting large-scale problem regarding fake IDs is employment-related identity fraud. While this is something that the employee is mostly liable for, employers are subjected to a wide range of organizational, financial, and legal problems due to their failure to properly verify an applicant or an employee.

Businesses must hire legally ensuring all employee records are accurate. Failure to do so can lead to sanctions for the company. Additionally, businesses also have legal obligations to ensure that their employees or patrons are of legal age, especially in industries or services that require age restrictions–selling cigarettes and alcohol being a common example.

In the corporate world, there are a lot of possible reasons as to why an applicant or an employee is using a fake ID for their identity, and most of them go against the law. They might be sent by competitors to uncover your trade secrets or sabotage your business processes under industrial espionage. Similarly, they might be hiding a criminal record and their tendencies put you and your employees in danger.

Aside from the possibility of important documents or items being stolen from your premises, any action done by the unverified employee will be traced back to your company. Not only will you have a hard time proving your innocence in the matter, but it will entail a lengthy and costly legal battle on your end.

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