Defeating the Paper Pandemic: How Digitization Can Solve Aviation’s Document Fraud Crisis

In the aerospace industry, quality and authenticity are paramount. Yet, as highlighted in a recent report by the Coalition, “the aviation industry continues to rely on physical paperwork, which can be both easier to counterfeit and more difficult to process in a timely manner.” This reliance on analog documentation, especially in critical processes like certification, has made it challenging to detect and mitigate instances of fraud, such as the recent issues with counterfeit parts and paperwork from AOG Technics.

Several experts in the Coalition’s assessment emphasized the added complexity of investigating and responding to such cases with paper-based systems, stating that “the industry’s heavy reliance on paper documentation made investigating and responding to the AOG Technics case more difficult and onerous.” As a result, many organizations have accelerated efforts to digitize documentation and implement Optical Character Recognition (OCR) to enhance security and streamline processes in response to this threat.

The AOG Technics case underscored just how vulnerable analog processes can be to fraud. “In many instances, the counterfeit ARCs issued by AOG included what looked to be fairly accurate depictions of an authorized signature, while other falsified features of the document were disparate—a purchase order number that did not conform to the OEM’s practice, or a part number that conflicted with the part the document accompanied.” The inconsistencies were difficult to detect, making clear the need for stronger digital safeguards.

Coalition-Recommended Solutions for Strengthening Aerospace Documentation

To mitigate these risks and advance the aerospace industry’s documentation practices, the Coalition recommends several key steps:

• • Increase the Use of Digital Tools
    Implementing digital tools like encryption and digital certificates can help verify document authenticity. Such technologies, widely used in sectors like banking and real estate, would add an additional layer of security to aerospace documentation.
  • Standardize and Digitize Existing Documents
    Consistency in document content and format is essential. This week, SmartCert’s COO, Lonni Kieffer, is participating in an SAE meeting in Frankfurt to contribute to the development of electronic Shop Findings Reports between carriers and MRO providers. This industry-wide collaboration aims to create a universal format that enhances both safety and efficiency.
  • Employ OCR and AI for Quality Documentation
    SmartCert utilizes OCR and advanced AI tools to convert quality documentation into structured data. This transition not only increases security but also enables deeper supply chain insights, reducing risk while boosting efficiency.
  • Establish a Centralized Digital Database for Authorized Release Certificates (ARCs)
    A notable case study from GE Aerospace shows the benefits of digital verification in MRO processes. By using AI to validate data fields and digital signatures to ensure chain of custody, GE has set a standard that could be applied across the aerospace supply chain.
  • Create a Voluntary “Back-to-Birth” Documentation Database
    Protecting intellectual property and managing vendor IDs and cybersecurity will be key to establishing a robust, user-friendly international database. Such a resource would simplify the tracking of parts and documentation, making it easier to verify authenticity and monitor chain of custody.

SmartCert was proud to contribute to the Coalition study and establish ourselves as a market leader in digitizing quality documents and turning them into a powerful and secure database.