Vouched CEO Explains How Firms Can Tackle Fraudulent Activities, Fake IDs Fraud

Fake IDs are often associated with teenagers trying to buy alcohol or sneak into clubs. But beyond these everyday infractions lies a much more dangerous reality—one that threatens national security, financial systems, and even public health.

As identity fraud becomes more sophisticated, so too must the methods for detecting and preventing it.

Peter Horadan, CEO of Vouched, an AI-powered identity verification company, has spent years tackling these hidden threats.

In an interview with CI, he discusses how fake IDs are enabling criminals, the risks to critical industries, and the role of AI in safeguarding against fraudulent identities.

Our chat with Peter Horadan is shared below.

Crowdfunding Insider: Fake IDs are often thought of as a problem for bars and liquor stores. What’s the bigger risk that people aren’t thinking about?

Peter Horadan: The public perception of fake IDs is outdated. We’re no longer just talking about college students trying to buy beer. Today, high-quality fake IDs are being used to commit serious crimes—money laundering, human trafficking, financial fraud, and even breaches of national security.

The public perception of fake IDs is outdated. We’re no longer just talking about college students trying to buy beer.

Think about it: a fake identity allows someone to operate outside the law. That means criminals can open fraudulent bank accounts, gain access to sensitive areas, or even evade law enforcement while crossing borders. The real danger isn’t just the fake document—it’s the false sense of legitimacy it gives bad actors.

Crowdfund Insider: What industries are most vulnerable to these threats?

Peter Horadan: It spans across industries, but financial services, healthcare, transportation, equipment rental, and automobile dealerships are particularly at risk.

Financial services: Fake IDs allow criminals to open fraudulent accounts, launder money, and commit large-scale fraud. Synthetic identities—where criminals mix real and fake information to create a new identity—have become one of the biggest financial fraud risks today.
Healthcare: Fake IDs let people gain access to prescription drugs illegally, commit medical fraud, and even receive treatment under someone else’s name, creating dangerous medical record mismatches.

Transportation: Think about the security implications of someone using a fake identity to gain access to restricted areas in an airport or to fraudulently obtain a commercial driver’s license. These aren’t just financial crimes; they have real-world safety consequences.

Equipment rental: Criminals use fake IDs to rent expensive equipment—such as construction machinery, heavy-duty vehicles, or high-value tools—only to disappear without returning them, leading to massive financial losses for rental companies.

Automobile dealerships: Fake IDs are frequently used in auto fraud schemes, where criminals use false identities to secure car loans or lease high-end vehicles that they never intend to return. This type of fraud not only results in significant financial losses but also fuels criminal networks that use stolen vehicles for illicit activities.

Crowdfund Insider: How has the rise of AI changed the game for both fraudsters and those trying to stop them?

Peter Horadan: AI is a double-edged sword. On one hand, criminals are using AI to create more convincing fake identities. They can generate deepfake images, manipulate official documents, and even create entirely synthetic identities that are difficult to detect using traditional methods.
On the other hand, AI is also the best tool we have to fight back.

AI is a double-edged sword. On one hand, criminals are using AI to create more convincing fake identities. At Vouched, we use AI-powered verification technology to analyze facial biometrics, document authenticity, and data consistency in ways that manual checks never could. AI allows us to detect subtle irregularities—like mismatched fonts, tampered holograms, or inconsistent facial features—that might be missed by the human eye.

The key is that AI systems improve over time. The more data they analyze, the better they become at identifying patterns of fraud, keeping us one step ahead of criminals.

Crowdfund Insider: Can you give an example of a case where fake IDs were used in a serious crime?

Peter Horadan: One of the most alarming examples is how fake IDs are used in human trafficking. Traffickers use fraudulent identities to move victims across borders, book hotels, rent vehicles, and even receive medical care—all while staying undetected by law enforcement.

In the financial sector, we’ve seen fake IDs used to create hundreds of fraudulent bank accounts, funneling money through a network of synthetic identities.

And let’s not forget national security. Some of the worst-case scenarios involve individuals using fake identities to gain access to sensitive locations or even government programs. The potential consequences are massive.

Crowdfund Insider: What can businesses and institutions do to better protect themselves against fake ID fraud?

Peter Horadan: First, they need to move beyond outdated verification methods. Manual checks and basic document scanning are no longer enough. Businesses should adopt AI-powered identity verification solutions that can assess multiple layers of authenticity, from biometric matching to real-time fraud detection.

Second, companies should integrate fraud prevention into their security culture. Too often, organizations treat ID verification as a formality rather than a critical security measure. Regularly updating security protocols, training employees on fraud trends, and adopting multi-layered verification processes can significantly reduce risk.

Finally, businesses should consider real-time identity verification. The ability to verify someone’s identity in seconds—using live selfies, NFC-enabled passport scans, or AI-powered liveness detection—can make it exponentially harder for fraudsters to succeed.

Crowdfund Insider: Where do you see identity fraud heading in the next five years?

Peter Horadan: The problem is only going to grow, but so will our ability to fight it. We’re already seeing a shift toward digital identities and biometric authentication, which will make traditional fake IDs less effective. Governments and businesses are moving toward mobile driver’s licenses and digital passports, which will introduce new security challenges but also new verification opportunities.

At the same time, AI-driven fraud will become more advanced, which means our detection methods have to evolve at the same pace. Fraudsters are using AI to generate fake documents, manipulate images, and even create deepfake videos to bypass traditional verification methods. This means that AI-powered identity verification solutions must continue advancing to keep up with these evolving threats.

Another emerging challenge is the rise of agentic AI—AI agents acting on behalf of people to complete transactions, manage accounts, or access secure systems. Just as we verify human identities, we will need to develop methods to verify the identities and legitimacy of AI agents to ensure they are authorized and not being exploited by bad actors. Fraudsters could soon attempt to create synthetic AI personas to bypass identity verification, making AI-driven fraud prevention even more critical.

Additionally, regulations around identity verification and data privacy will continue to evolve. Companies that proactively adopt strong identity verification processes will not only protect themselves from fraud but also stay ahead of compliance requirements as governments tighten security standards.