Document Forgery

What Companies can do About Document and Certificate Forgery

Certificate forgery is an issue, not just in Germany. In 2021, there were around 90,800 cases of document fraud in this country alone. Although the clearance rate for these cases was between 80 and 90 percent, recent figures show that this rate is trending downward.
Does this mean that document forgery is getting better and better? Perhaps. Fortunately, however, there are ways and means for companies and authorities to better protect themselves against document forgery.

Falsifying Documents: What is Document Fraud?

Basically, the term document fraud refers to the falsification or alteration of a document or the production of a false document.
Under German and EU law, this is a criminal offense that is punished accordingly. And it is not just the forgery or production itself that is punishable, but also the mere use of the document, which can be punished with a fine or even imprisonment.

Examples of Document Forgery

Documents can include certificates, identity documents, but also tickets or admission tickets. However, a forged document does not always have to be a copy of an original. There are different forms of document forgery:

• If someone drafts a will and forges another person’s signature on it (in order to give the impression that this person is the issuer of the document) they are forging a document. They are producing a false document.
• If, on the other hand, you commission a forged document, such as a diploma, and use it for a job application, you are using a false document. The same applies if you use a forged ID card.
• If an original document is altered, this is referred to as document falsification. Examples include changing the grades on a report card or adding to a will.

Document Forgery: How Severe is the Punishment?

Document forgery is punishable in Germany under § 267 StGB (German Criminal Code). It states:

“(1) Anyone who produces a false document, falsifies a genuine document, or uses a false or falsified document for the purpose of deception in legal transactions shall be punished with imprisonment of up to five years or a fine.”
In particularly serious cases, the penalty for document forgery can even be up to ten years’ imprisonment according to the StGB. Such a case exists according to Section 267 (3) if someone

• commits document forgery commercially or as a member of a criminal organization
• causes a large-scale loss of assets
• significantly jeopardizes the security of legal transactions through a large number of false or forged documents
• abuse their powers or position as a public official or European public official.

The amount of the fine for document forgery depends on the income and previous convictions of the perpetrator. In principle, the forgery, falsification, production, or use of a forged document can be punished with a minimum of five and a maximum of 360 daily fines according to Section 40 of the German Criminal Code (StGB). The daily rates are usually calculated using the following formula: monthly salary (net) divided by 30 gives the daily rate.

How can Organizations Differentiate Between Genuine and Forged Documents?

When looking at a document, it is not always easy to tell whether it is genuine, forged, or counterfeit. The question of whether a document is forged or falsified is essential when processing important orders or contracts, for example in banking, e-commerce, healthcare, and the telecommunications industry.

How Companies Can Prevent Document Fraud

To detect forged documents, reviewers can, for example, pay attention to the format and/or content (such as spelling mistakes) of the documents submitted. They can also take a critical look at special circumstances relating to the beneficiary and at discrepancies between the documents and other available information.
However, such checks are of little help when it comes to processing contract documents submitted digitally and concluding contracts on this basis.

Identification tools such as WebID products can be a useful aid in counteracting the risk of document forgery. With VideoID (Live), VideoID (Review), AutoID, and eID, WebID offers innovative and legally compliant solutions for identity verification.
These solutions can help companies and authorities verify the identity of individuals who may have presented forged certificates or documents.

Which Companies Need Secure Online Identification Procedures?

The legal situation is now clear. There are a number of industries in which secure identification solutions are legally mandatory, including, for example

• Banks and financial institutions
• E-commerce
• Telecommunications
• Insurance
• Real estate
• Healthcare
• Lawyers

If companies in these industries do not use a secure identification procedure, they may even be guilty of using forged documents in case of doubt – which, in addition to financial losses (fines!), can lead to significant damage to their image.

How should Companies Deal with Discovered Document Forgery?

If a company even suspects that it has been presented with forged documents or certificates, the appropriate course of action will vary depending on the type of forgery and the applicable law, which differs from country to country.
In Germany and other EU countries, there is a reporting obligation, which means that companies and authorities must report any document forgeries they discover.