Proof of residence in France: a bulwark against document fraud?

Whether it's to open a bank account, take out a subscription or obtain official documents, proof of address is systematically required in France. This specific French requirement is often seen as a trivial formality, yet it plays a crucial role in preventing document fraud. Why is this requirement more marked in France than elsewhere? We give you the answers! 

Proof of address: a tool for verifying identity

The main purpose of the proof of address is to confirm actual residence. 
This is generally a document issued by a trusted entity, such as an energy bill, bank statement or tenancy agreement. It certifies an individual's address. 

In France, this practice is linked to the administrative control. This control is essential for prevent identity theftThis fraud is often based on the use of false documents. Proof of address is used to confirm that the person is actually located at a precise address which reduces the risk of fraud. 

For example, a false claim may be detected by an inconsistency in the data provided or by cross-checks with other entities.

Is proof of address a requirement specific to France?

While other countries, particularly in Northern Europe (Austria, Finland, Germany, Hungary and the Netherlands, for example), do not, favour centralised, digital identification systemsIn France, the paper or digital document is still very important. 

There are several reasons for this difference. Here's the lowdown. 

A specific administrative tradition 

In France, the management of personal data remains fragmented between different bodies, in particular : 

• There CNIL (French Data Protection Authority)
• L'ANSSI (French National Agency for Information Systems Security)
• THE Ministry of the Interior
• There CNAM (National Health Insurance Fund)

Want to find out more about health insurance fraud? Listen to an exclusive interview with Marc Scholler, Deputy Director of Health Insurance, responsible for Finance, Fraud Control and Audit. 

Proof of address is now essential for make up for the lack of a centralised register. It certifies a person's address for administrative, banking or legal purposes.

A strict legal framework 

French laws against fraud and money laundering impose strict checks on banking services, insurance and even certain social benefits. 

It is therefore essential for these sectors to diligently check the identity and location of applicants. 

Read on: What are the legal requirements for anti-fraud banking compliance?

Proof of address in the face of document fraud

There document fraud can take a variety of forms: falsification of documents, production of false supporting documents or manipulation of digital data. In this context, proof of address is a first filter.

The most exposed sectors 

Some industries are particularly vulnerable to document fraud:

• Banking and finance 

Proof of address is essential for open an account or take out a loan. It guarantees that the applicant is a real person who can be located and, in some cases, that their address is consistent with other information.

• Insurance

In this sector, a false receipt can be used to change a premiumcreate a false declaration or take out a fraudulent contract.

• The public sector 

Social assistance and administrative benefits also require rigorous validation of the information provided to avoid abuse.

Limits and criticisms of proof of address 

Despite its usefulness, proof of address has come in for criticism. 

Some believe that unnecessarily burdens administrative proceduresEspecially at a time when the digitisation of processes could simplify procedures.
In addition, the receipt remains falsifiable. It can be modified using simple, accessible toolssuch as retouching software. This fragility poses a problem, particularly in a context where documents are not systematically checked. In the absence of sophisticated technologies, such as automated document analysis solutions, the risk of fraud increases. 

Others question its real effectiveness in the face of organised fraudsters capable of producing documents that are virtually undetectable. This is why there are initiatives to supplement or replace this requirement with more robust systems:

• There biometric identity verification It has been adopted in a number of countries (the United States and Portugal, for example), making it possible to authenticate a person more reliably.
• There creation of centralised databases A digital register shared between institutions could make verification more fluid.

Although these actions are well thought out, they do not prevent the risk of falsification. To counter document alteration as effectively as possible, there's nothing better than forgery detection software! 

Tools to reinforce the authenticity of proof of address 

Technological advances are playing an increasingly important role in detecting forged documents. Document recognition and artificial intelligence solutions make it possible toanalyse the characteristics of documents (fonts, logos, etc.) and detect alterations or inconsistencies. 

These tools help to automate controlsmaking document fraud more difficult and more risky.

This detection software enables various entities (banks, insurance companies, public sector) to strengthen their controls and avoid any risk of document fraud. 

Would your company like to invest in a false document detection tool? Contact our experts to find out more!