What Is Intelligent Document Processing?

The FTC recorded more than 1.1 million identity theft reports in 2024 alone. Today, fraudulent documents continue to be a serious threat to any organization that requires applications backed by identity, financial, or legal documents. 

Whether they’re using forged pay stubs, fake IDs, or tampered bank statements, many modern-day fraudsters have access to increasingly sophisticated techniques and tools. And that makes it more challenging than ever for manual review teams to keep up.

But there are also tools available to help combat document fraud, like intelligent document processing (IDP). There’s a misperception that only large enterprises use IDP, but the reality is that it’s quickly becoming a must-have for all types of businesses to protect themselves and their customers from fraud.

We’re breaking down exactly what intelligent document processing is, how it works, and—most importantly—how it can help you catch fraudulent applications before they become expensive mistakes.

Quick Insights

• Fraud is on the rise, and manual checks can’t keep up. Fraudsters are using advanced tools to forge documents, including pay stubs and bank statements, making manual reviews increasingly unreliable.
• Intelligent document processing combines AI, OCR, and machine learning for smarter document checks. It automates document classification, data extraction, and fraud detection.
• IDP works with all types of documents, from structured tax forms to scanned utility bills to mobile uploads of driver’s licenses. Whatever the document, IDP can quickly pull and validate key data from it.
• Catch more fraud with IDP faster. On top of speeding up workflows, IDP increases accuracy, scalability, and consistency, spotting suspicious documents before they become expensive mistakes.
• Snappt puts IDP into action, using it to power super-fast and accurate fraud detection. Get precise pass-or-fail results in under 10 minutes and make more informed leasing decisions.

What is Intelligent Document Processing (IDP)?

Intelligent document processing is a technology that uses artificial intelligence (AI) and automation to extract, classify, and validate data from documents.

IDP quickly and accurately processes documents and can be especially useful for organizations dealing with high volumes of documents that can’t afford to miss any warning signs.

But IDP isn’t just one tool—it’s a mix of technologies working together:

Optical character recognition (OCR) pulls out text.

Natural language processing (NLP) understands what that text means.

Machine learning (ML) helps the system learn and improve with every document it processes.

Document fraud detection models apply rules to catch inconsistencies and potential red flags.

Traditional document checks typically rely on individuals spotting errors by eye or using basic automation. For example, simple automation might check if a document has been uploaded and verify whether it includes specific keywords or adheres to a particular file format. 

IDP, on the other hand, is more reliable, consistent, and far better at spotting document fraud attempts. A study found that AI methods—including NLP and anomaly detection—outperform traditional auditing techniques by approximately 15-30% in fraud detection accuracy.

What Types of Documents Can IDP Handle?

IDP processes documents most commonly used in application workflows, including but not limited to:

• Pay stubs
• Bank statements
• Tax returns and forms
• Utility bills
• Government-issued IDs

Intelligent document processing works across structured, semi-structured, and unstructured documents. So, whether you’re dealing with a crisp PDF, a scanned image, or a quick mobile upload, IDP can extract and validate the information.

How Intelligent Document Processing Works (Step-by-Step) 

So, how does intelligent document processing actually spot fake documents? It involves a series of smart, automated steps that work together to understand what has been submitted and identify anything that doesn’t add up. 

Here’s a step-by-step breakdown of how it works.

Step 1: Document Ingestion 

The IDP process begins as soon as a document is entered into your system. An applicant might upload a pay stub through an application portal, or someone could send a bank statement via email.

Whatever the source—whether it’s a PDF, image, or scanned document—the system accepts it and gets to work.

Step 2: Classification 

Next, intelligent document processing identifies the document. Is it a tax form? Utility bill? Or a driver’s license?

AI models can recognize layouts, headers, and other structural markers to categorize files accurately. This step is essential because various document types require different treatments and analyses. 

Step 3: Data Extraction

Once the document is classified, IDP extracts key information using a combination of OCR, NLP, and ML. This might involve pulling out specific information, like the applicant’s: 

• Name
• Income
• Payment dates
• Account balance

At this stage, the system also verifies the accuracy of the extracted data by cross-referencing it with predefined rules or existing databases.

Step 4: Validation and Fraud Detection 

Here’s where it gets interesting. Intelligent document processing runs the data through fraud detection models to spot inconsistencies, altered fields, or digital tampering. 

For example, it can detect whether a pay stub appears suspicious, if values have been altered, or if metadata suggests image editing—all of which could suggest digital forgery and fraud.

Step 5: Output and Flagging 

In the final step, the cleaned and verified data is passed onto business systems. If something looks off, the system flags it for review, so you can take action before fraud slips through.

How IDP Helps Protect Against Document Fraud 

Fraudsters create fake documents to appear as convincing as possible, which means they often slip past even the most meticulous human reviewers.

Intelligent document processing adds a significant layer of protection by detecting signs of tampering that might otherwise go unnoticed.

Here are just a few of the red flags associated with fraudulent documents:

• Mismatched fonts
• Suspicious metadata (data about other data)
• Irregular formatting

IDP eliminates the guesswork and human error that often creeps into manual review processes by flagging anomalies and inconsistencies automatically. So, you’re not just moving faster, you’re catching more fraud earlier.

And early detection matters. Because the sooner you spot a fake, the easier it is to stop a fraudulent application before it becomes a serious problem.

IDP also maintains a detailed audit trail, logging what was flagged and the reasons behind it. This gives your team evidence to back up rejected applications and allows you to be clear and transparent if an applicant questions your decision.

5 Benefits of Using Intelligent Document Processing

IDP doesn’t just help you spot fake documents—it makes your entire document workflow faster, smarter, and more secure. 

Whether you’re processing five applications a day or 5,000, IDP helps your organization operate more efficiently and protects against risk. Here are just a few of the benefits of using intelligent document processing.

1. Speed and Efficiency

IDP processes documents in seconds, not hours. By automating repetitive, time-consuming tasks that slow teams down—like data entry and field-by-field review—you reduce overhead costs and free staff to focus on higher-value tasks. This productivity boost helps streamline operations without sacrificing quality.

2. Scalability 

As your volume of applications grows, IDP grows alongside you. You don’t have to worry about limited staff capacity or overwhelmed review teams. Intelligent document processing can handle large volumes of documents precisely and consistently, so your team can scale without compromising on security.

3. Accuracy and Consistency 

Tiredness, multitasking, and tight deadlines make it easy for human reviewers to miss critical red flags. IDP eliminates those risks by applying the same checks to every document, every time. 

Intelligent document processing has the potential to gain an accuracy rate of 99%. That means increased consistency and fewer document fraud scammers slipping through the cracks.

4. Improved Customer Experience 

IDP accelerates turnaround times for legitimate applicants, too, helping you make faster decisions for the right people. A quicker and smoother process creates a better customer experience—and stronger relationships in the long run—without compromising security.

5. Compliance and Data Security 

Intelligent document processing handles sensitive documents securely, helping your organization stay compliant with data privacy and industry regulations. 

IDP also provides a digital audit trail for every document, so you’re never caught off guard during a compliance check.

Real-World Use Cases for IDP 

Intelligent document processing is already helping businesses in various industries stay ahead of fraud, including property management, finance, insurance, and the gig economy.

See how IDP protects them from growing fraud issues.

Property Management

IDP prevents applicants from submitting fake pay stubs, bank statements, or IDs during the rental application process, helping you get the right tenants in your units.

Lending and Finance

Intelligent document processing technology catches forged tax forms and amended financial documents during loan applications. It also automates expense reporting, invoice processing, and loan payments.

Insurance

In the insurance industry, IDP validates identity and income documents during claims or policy sign-ups, reducing the risk of fraud and fast-tracking processing times.

Freelance or Gig Economy Platforms

IDP verifies documentation from new workers—like IDs or proof of income—before assigning jobs or activating accounts, ensuring all documents provided are legitimate.

How Snappt Uses Intelligent Document Processing to Stop Fraud

At Snappt, we use advanced AI technology to help property managers catch fraudulent documents before they lead to bad tenants and expensive mistakes. 

Intelligent document processing powers our system behind the scenes, analyzing large volumes of applicant documents quickly, accurately, securely, and at scale.

Snappt easily integrates into your existing application workflow—it’s ridiculously simple to verify pay stubs, bank statements, and other financial documents while streamlining your entire rental application process. Plus, Snappt delivers comprehensive fraud analysis of documents in under 10 minutes, including clear pass or fail recommendations.

Our technology flags suspicious files with a high degree of accuracy and a low false-positive rate, so you’re only alerted when something really is off. Use Snappt to protect your units and communities, save time, and reduce risk by identifying fraud before leases are signed, sealed, and delivered.

Whether you manage 10 units or a thousand, Snappt helps you make faster, smarter, and more secure rental decisions.

Smarter Document Review Starts Here

Document fraud is becoming harder to spot and more expensive to miss. However, intelligent document processing provides a faster and more reliable way to protect your organization.

By combining AI, OCR, and advanced data validation, IDP detects signs of tampering, pinpoints inconsistencies, and removes human error from the rental review process.

Opting for IDP in document review is about peace of mind as well as efficiency. If you’re rethinking your fraud prevention strategy, now’s the time to explore how IDP and AI can play a role. 

At Snappt, we use IDP within our fraud detection and income verification software to help property managers catch fraud. Want to see how it works? Learn how Snappt protects your rental organization from document fraud here.