What Is a Machine Readable Zone? Its Role In ID Verification

Verifying a prospective renter’s identity is one of the most important steps in tenant screening—it confirms who they are and allows you to pull credit and background checks to gauge whether they’d make a good tenant. 

But as AI-generated IDs become more sophisticated, it’s getting increasingly hard to know whether an ID is fraudulent or the real deal.

Spotting fake IDs can be tough, but some identity documents, like passports, have an extra feature to help you—a machine-readable zone (MRZ). Specialized scanners can read an MRZ in milliseconds and verify its data instantly.

MRZ technology can quickly, and more importantly, accurately, enhance ID verification in the tenant screening process. So, how exactly does an MRZ improve the ID verification process? 

We’re diving into all things MRZ, from how they work to how they help you screen tenants more efficiently. 

What is a Machine Readable Zone?

A machine readable zone (MRZ) is a section of text on identification documents that includes identifying information in a standardized format. It appears as one to three lines of alphanumeric text at the bottom of IDs, such as passports and visas.

Although MRZs first appeared on passports to verify traveler IDs, they’ve now expanded to industries like finance, event security, and hospitality. MRZ technology has many use cases, including:

• Customer onboarding
• Fraud prevention
• Identity proofing
• Know your customer (KYC) automation

Machines—usually scanners—quickly extract the data embedded in MRZ text, which includes letters, numbers, and special characters. The symbol “<” separates data, like the document holder’s name or nationality.

The data appears in a universal format so the scanner can extract critical information, like name, date of birth, and document number. ID verification tools can then cross-reference the data against government databases to confirm the identity is valid.

The MRZ appears alongside the visual inspection zone (VIZ)—the human-readable section of the document. In rare cases, comparing the information across MRZ and VIZ can help catch possible fakes. 

 Pro tip: Follow manual verification with automated checks to combat fraudsters who use AI to create a convincing fake ID.

How Does a Machine Readable Zone Work?

A machine readable zone ID displays one to three lines of text that can be easily scanned by a machine and broken into individual data fields. An algorithm generates text that meets the universal formatting rules to create a machine-readable zone. Then, the machine scans the document and extracts information for ID verification. 

Encoding Process

A software program takes a document’s data and formats it into standardized text that follows the MRZ formatting rules set by the International Civil Aviation Organization (ICAO). This standardization allows machines to read MRZs quickly instead of relying on human review that’s prone to error or inaccurate parsing.

The data within an MRZ contains critical information about a document and its holder, like:

• Document type and number
• Issuing authority or country
• Sex
• Expiration date
• Full name
• Date of birth
• Nationality

Encoded in the MRZ are a series of digits known as checksums. An algorithm condenses the document information and checksums into a single digit. Scanners can later repeat this calculation to “check” that they read the MRZ correctly. 

Scanning and Decoding

Once the algorithm generates MRZ data, a machine can scan the text. Scanners use optical character recognition (OCR) software to read the text blob and extract the data.

Other tools can then send the extracted data to cross-reference against government databases. With the right tools, you can also compare MRZ data against other security features, like the information on an electronic chip in an e-passport. 

Key Features of a Machine Readable Zone ID

A machine readable zone ID contains several basic features that make MRZs a powerful tool for verifying IDs and tenant screening. 

Standardization

MRZs adhere to ICAO standards, which control the font, spacing, margins, and number of characters. This fixed format allows countries across the globe to embed, display, and read data in the same way, regardless of alphabet or language. 

Data Accuracy

MRZ formatting is purpose-built for machines to read an MRZ and break it down into separate fields, like name and date of birth. This automation reduces the likelihood of data entry errors, so when you use an MRZ in identity verification, you can be confident the data is accurate. 

Thanks to checksums, a scanner can check its own work. If the number the scanner calculates doesn’t match what the MRZ shows, the scanner will flag the mismatch and retry. 

The result? The chances of a scanner misreading the text are slim. 

Security

Because the ICAO has strict standards, you can quickly identify potential forgery if there are any inconsistencies. Scanners can detect these minor differences almost instantly.

But sophisticated fraudsters have the tools and know-how to meet ICAO standards—cross-reference MRZ scan data with government databases. MRZ data should match all other document features and the person presenting the document.

Any inconsistencies between the MRZ, the document holder, the VIZ, or the electronic chip should raise a red flag.  

Benefits of MRZs in ID Verification for Property Managers

Machine readable zone IDs are great at airports and banks, but they’re also a powerful tool for property managers. Because MRZ technology is quick and efficient, using it in ID verification can simplify processing tenant screening and rental applications.

Faster Verification

Save yourself the time and hassle of reading and typing in someone’s ID info—a scanner can complete the same task in a split second with fewer errors. When verifying the ID’s data, results come back in seconds to let you know whether the document is valid. 

Enhanced Fraud Detection

Upwards of 85% of property managers have experienced application fraud. A robust fraud detection strategy is essential to catch tenant scams before it’s too late. 

Using MRZ data for ID verification can help you identify discrepancies and spot a fake ID:

• Cross-referencing MRZ-extracted data against a government database can help you catch identity fraud.
• Formatting errors may mean forgery or tampering (but advanced fraud tactics make these rookie mistakes less common).
• Internal inconsistencies between the MRZ, VIZ, and electronic chips could be a tip-off for fraud.

Improved Data Integrity

Even the most careful data entry includes typos. A mistyped name or address on a tenant application can lead to more future headaches. When you scan a machine readable zone ID, the scanner’s software can push the data into your tenant screening tool—typo and error-free. 

Integration with Technology Solutions

MRZ technology is more effective when it works with your other property management tools, including tenant screening services. Through integrations, MRZ data and results will move seamlessly into your other systems, streamlining processes.

How to Use MRZs in Tenant Screening

Scanning MRZs saves time and increases accuracy throughout your tenant screening process—but how do you actually use a machine readable zone ID in these workflows? 

Pick your MRZ tool, train your team to use it, and then combine it with your other ID verification methods. 

Investing in MRZ Scanning Tools

First, you need to be able to extract data from an MRZ using a specialized ID scanner with OCR capabilities. You can buy a standalone piece of hardware, like the passport scanners you see at an airport. Or you can purchase software that works with a smart device’s camera.

Do some homework before making a decision. A good MRZ scanning tool should have:

• Robust data security and compliance
• Integrations with your other tools and workflows
• Positive reviews from reputable sources (like Gartner)
• Scalable and affordable pricing

Training Your Team

As with any new tool or process, you’ll need to train your team on how to use MRZ technology. Educate your staff on how to: 

• Use the MRZ scanner
• Interpret the results
• Take appropriate steps if the results suggest fraud

Have clear guidelines for what staff should do if they suspect fraud, like asking for more documentation, taking detailed notes, and reporting identity fraud. 

Combining MRZ Verification with Other Methods

Don’t rely only on the results of an MRZ scan. After automated verification, conduct your own visual inspection and check for:

• Discrepancies between the MRZ and VIZ
• Typos
• Blurry photos or text
• Inconsistent formatting

Liveness checks and biometric matching can add more security and help you fight synthetic identity fraud. 

Once you’ve verified an ID, review all application materials thoroughly as part of a multi-layer fraud detection strategy. Look out for fake pay stubs, utility bills, and bank statements. 

Challenges and Considerations

Despite clear benefits, using machine readable zone IDs can create challenges for property managers. Here are some important considerations when using MRZs in your tenant screening process. 

Accessibility

Some potential renters with older or non-standard documents may not have a machine readable zone ID. In these cases, ask for additional documentation to confirm their ID. 

Whenever you request extra documents, follow consistent, objective criteria to comply with fair housing laws. And keep detailed notes to protect yourself from any possible discrimination suits. 

False Positives

No technology is 100% foolproof, and MRZs are no exception. Some legitimate documents may have MRZ formatting errors, or an MRZ scanner may incorrectly flag an ID. 

If you encounter MRZ issues with a document, repeat the scan. Then ask for other forms of ID before rejecting an applicant or reporting fraud. 

Data Privacy

The data on an ID—including in the MRZ—is sensitive information, so handle it carefully. Mishandling these documents may violate data privacy laws and security regulations. 

Store all document scans and data securely, and make sure you store electronic files on an encrypted, password-protected platform. Keep paper copies under lock and key and destroy all files once you no longer need them. 

Protect yourself from accidentally mishandling data by choosing tools with a strong data compliance background that follows multiple data security standards. 

Enhance Tenant Screening with Machine Readable Zone IDs

Using MRZs for ID verification can improve the speed, accuracy, and security of your tenant screening process. An MRZ scanner can extract and confirm a document’s data in seconds, letting you know right away if you’re dealing with a fake ID. 

MRZs are a valuable feature of any modern ID verification suite. MRZ technology can integrate with your other tools and eliminate duplicate work. And most importantly, investing in MRZ scanning technology can add another layer of protection from bad tenants and potential fraud. 

Want to learn more about fraud detection strategies? Check out our in-depth guide.