The Crucial Role of Physical Identity Verification for Notaries
In an era where identity fraud is escalating, the role of notaries in verifying identities through physical, face-to-face interactions has never been more critical. Notaries serve as the first line of defence against such fraud, ensuring that individuals are who they claim to be before authenticating important documents.
Notaries make an important contribution to the fight against money-laundering by reliably identifying parties involved in substantial financial transactions, and by keeping trustworthy records which may be provided to law enforcement and public authorities such as Tax Offices upon request. They serve as a deterrent for criminals from being involved in transactions requiring notarial registrations. This has been recognised by the European Anti-Money Laundering regulatory framework which has specified notaries as being within its scope.
Beginning July 1, 2025, the newly formed European Anti-Money Laundering Authority (AMLA), headquartered in Frankfurt, will begin direct and indirect supervisory oversight of selected obliged entities, with the authority to enforce compliance and impose administrative sanctions. Obliged entities must conduct thorough customer due diligence (CDD), verify ultimate beneficial ownership (UBO), screen for politically exposed persons (PEPs), and assess risk based on negative media and sanctions lists.
Most Frequent Fraud Relating to Notarized Documents
The most common types of notary fraud include real estate fraud, power of attorney (POA) fraud, and identity theft in financial transactions. Real estate fraud is the most common and damaging type, with a fraudster impersonating a property owner and forging signatures on a deed. A complicit or negligent notary may then notarise the forged documents, allowing for the illegal sale or mortgage of the property without the owner’s knowledge. This type of fraud is especially prevalent due to the high value of real estate transactions and the need for notarised documents.
Power of attorney fraud is also common, especially in cases of elder abuse. In these cases, a fraudster may forge a notarised power of attorney to gain control of a victim’s finances, property, or medical decisions. Because notarised POAs are widely accepted as legitimate, this type of fraud can go undetected until significant damage has occurred.
Another common type involves identity theft in financial transactions. Fraudsters use stolen identities and falsified identification to obtain notarised documents, which are then used to apply for loans, transfer of assets, or open financial accounts. Notarisation provides a layer of false legitimacy, making it easier to avoid standard verification procedures.
Why Identity Verification for Notaries Matters
The rise of sophisticated identity fraud techniques, including synthetic identities and deepfakes, poses significant challenges. Identity verification by notaries serves as a robust deterrent against such fraud, as it is considerably more difficult to deceive a trained professional in person than through digital means.
Notaries act as “hidden guardians” of legal agreements. As highlighted by Practical Law, their presence often goes unnoticed until something goes wrong. They also maintain secure records that may be used as critical evidence in legal disputes.
The Human Element: Why Physical Presence Matters
Physical identity verification involves the in-person examination of government-issued identification documents, such as passports or driver’s licenses, to confirm an individual’s identity. This process allows notaries to assess the authenticity of the documents and observe the signer’s demeanour, ensuring that the individual is signing willingly and without coercion.
The physical presence of a notary adds a layer of security that technology alone cannot provide. Notaries are trained to detect signs of fraud, such as forged documents or suspicious behaviour. If a notary suspects that a document is fraudulent or that the person signing it is not who they claim to be, they have the authority to refuse to notarize it. This human judgment is crucial in preventing fraudulent transactions and protecting all parties involved.
As noted by Practical Law, even in the digital age, there are significant gaps in remote verification tools that notaries can bridge through direct human interaction. Their role isn’t just administrative; it’s proactive, vigilant, and deeply rooted in public service.
Experienced Identity Verification Provider for Notaries
For decades, Keesing Technologies has been supporting notaries in confirming the authenticity of government-issued documents as well as the document holder.
Keesing specializes in on-site identification. Our AuthentiScan solution delivers accurate results in seconds, combining facial recognition technology with a solution that can verify secure documents in seconds. The screening options also include PEP and sanction list screening.
If you need to verify identities and comply with regulations, we are happy to assist you. Contact us via sales@keesingtechnologies.com or call us at +31 (0)20 7157 825.
