Historically exposed to various types of fraud (phishing attempts, data theft, bank transfer scams, etc.), the banking sector is now facing a threat that is growing in magnitude: documentary fraud. We take stock in this article.
With the dematerialization of exchanges and the automation of processes, documents transmitted online have become a preferred entry lever for fraudsters.
One Pay slip modified, a identity document falsified or a proof of address rigged may be enough to bypass the verification mechanisms put in place by businesses.
In Belgium, this phenomenon does not only concern large financial institutions. Local banks and neobanks are also on the front line.
Document fraud is far from being marginal: it is now emerging as one of the main drivers of digital crime in Belgium.
According to a study conducted by Finovox in partnership with the independent polling institute Selvitys, in 2024, 85% of the companies surveyed placed the fight against fraud among their three strategic priorities.
This observation is accompanied by a gradual strengthening of dedicated staff, a sign of real awareness of the extent of the phenomenon.
There is still considerable room for improvement in the fight against bank fraud.
According to the same study conducted by Finovox, four out of ten companies still do not use specialized software to verify the authenticity of documents. A lack of equipment that weakens control devices.
At the same time, phishing losses reach nearly 40 million euros in 2023, according to Febelfin. And in many cases, it was forged documents - invoices, identities, receipts - that allowed fraudsters to slip through the cracks.
Document fraud refers to any manipulation or production of documents with the aim of Deceive a financial institution.
In the banking sector, it takes multiple and often very sophisticated forms:
These false documents are much more than just a crime. They pave the way for large-scale fraud, with serious financial and legal consequences for banks. So, what are the different types of fraud that are emerging in the banking sector?
Falsified documents make it possible to hide the real origin of funds and integrate money from illegal activities into the banking circuit, bypassing conventional control devices.
For example, a fraudster could provide a fake employment contract and pay slip to get a bank loan. Once the loan was granted, he would use that money to justify the entry of funds into your account, actually linked to illegal activity.
By creating fictional identities and fake businesses, fraudsters set up artificial invoicing circuits to unduly recover VAT credits, while hiding their real activities.
For example, it could be a shell company created with a falsified ECB number, which declares fictitious purchases from non-existing suppliers to claim VAT refunds never actually paid.
Fraudsters set up false loan applications by falsifying supporting documents: exaggerated incomes, fictional employers, invented addresses.
They pass themselves off as reliable borrowers, get loans that they never intend to repay. Result? Significant financial losses for banks.
Using counterfeit documents (false invoices, forged mission letters), fraudsters impersonate known partners or suppliers of a company or customer.
They then send false payment instructions, encouraging the bank to transfer funds to fraudulent accounts.
Document fraud not only exposes banks to financial losses: it also places them under the threat of severe regulatory sanctions.
In Belgium, the Law of 18 September 2017 (on the prevention of money laundering and the financing of terrorism and on the limitation of the use of cash) requires financial institutions to respect strict KYC procedures (Know Your Customer).
These procedures aim to verify the identity of customers, assess their risk profile and detect possible fraudulent activities or illicit.
Accepting falsified documents upon entering into a relationship (identity card, pay slip, proof of address) directly compromises these vigilance obligations.
In the event of non-compliance, the risks are high:
A recent case illustrates these challenges well: in 2022, a Belgian bank was fined 2.5 million euros for accepting dubious documents when opening accounts for high-risk profiles.
La National Bank of Belgium (BNB) and Financial Services and Markets Authority (FSMA) supervise the application of these obligations and no longer hesitate to punish institutions lacking rigor.
Faced with increasingly sophisticated fraud, banks can no longer be satisfied with traditional controls. An approach combining human vigilance, institutional cooperation and advanced technologies is now essential.
The first line of defence against fraud is the employees themselves. Train them to spot weak signals (visual inconsistencies, format anomalies, false logos, or contextual discrepancies) is essential to identify a falsified document before it enters the systems.
Work closely with the Financial Information Processing Unit (CTIF-CFI) and the National Bank of Belgium makes it possible to quickly report suspicious cases, to monitor emerging fraud patterns and to adapt its procedures accordingly.
The flow of information is a strategic weapon in the face of constantly evolving fraud techniques.
The complexity of current falsifications makes manual verification insufficient.
Solutions like Finovox, based on artificial intelligence, offer an effective response by allowing:
These technologies become valuable allies in securing banking transactions as soon as they enter into a relationship. Find out how Finovox can increase the security of your document processes.
