Why manual ID checks are no longer enough for accountants

For years, a photocopied passport and a recent utility bill, neatly filed away, were the go-to for client due diligence in many accounting firms. It was a process that made sense and felt tangible. But with changes in regulations from Companies House and fraudsters getting smarter, that process is starting to look less like a safety net and more like a risk.

If you're still relying on the naked eye to verify identity documents, you're not alone. But with the new requirements looming, it’s important to understand why this traditional process is no longer enough to ensure your firm is compliant and protected from fraudsters.

The growing pressure to be a fraud expert

The truth is, spotting a fraudulent document isn't a simple task anymore. High-quality fakes can be incredibly convincing, easily passing a visual check. For example, would you be able to spot a fake passport, or utility bill? This isn’t about how diligent your team is; it's about the world changing around us.

Many accountants are not - and didn’t need to be - trained in falsified documents.

But changes in regulations and technology are putting pressure on those in the profession to be fraud experts. Every manual check brings the risk of human error, and the chance that a fraudulent document could slip through. That could leave your firm facing financial and reputational damage.

The rules have changed - is your process still compliant?

Beyond the everyday risk of fraud, new regulations have drawn a clear line in the sand. The upcoming Companies House identity verification standard for Authorised Corporate Service Providers (ACSPs) has moved the goalposts completely.

Under the new rules, a simple visual check isn't enough unless your team has been trained by a specialist provider in detecting false documents. Even a basic digital check that only matches a face to a photo won't cut it anymore. To be compliant, you need to meet a much deeper level of certainty. The official guidance states you must use technology that can validate the cryptographic features of an ID document, like a passport.

Sticking with a manual process or outdated tech doesn't just leave you at risk; it now means you are failing to meet a mandatory compliance standard.

How digital ID verification tools give you certainty

Digital ID verification (IDV) tools are designed to solve the risk and uncertainty that come with traditional ways you might verify your client's identity. It takes the guesswork out of the equation by using technology to do what the human eye can't, helping your firm stay ahead of changing regulations.

A good digital platform gives you confidence by combining a few key pieces of technology:

• It proves the document is real. The most reliable way to check an ID is to read its built-in security features. That's why leading platforms, including Thirdfort, use technology like NFC (Near Field Communication) to read the cryptographic chip in a passport. This securely confirms the document is a genuine, government-issued credential, not a sophisticated fake.

• It confirms you're dealing with the right person. A digital check can also confirm that the person presenting the ID is its true owner and that they're physically present. This is done using a sophisticated 'liveness' check, which is a powerful defence against impersonation and deep fakes.

• It creates a secure audit trail for you. With regulations requiring clear records of every identity check, the ideal platform should automatically generate and store a report for completed ID checks. This gives you the proof you need for any file review or audit, ready to access at any time.

From uncertainty to confidence

Moving on from manual checks isn't just about getting new tech. It's about swapping uncertainty and risk for confidence and control. It’s about protecting your firm, empowering your team, and giving your clients the secure, professional onboarding they expect.

By understanding the limits of manual processes and embracing the certainty of digital verification, you can handle the new regulatory landscape not with fear, but with the confidence that your firm is secure, compliant, and ready for the future.