KYC Compliance- Smart Solution to Prevent Digital Frauds

With digitalization, know your business and industries are experiencing various internal as well as external threats. The criminals are deliberately using sophisticated technology-based tools to run their illicit activities. Such fraudster groups are intended to exploit the systems of legitimate companies such as insurance companies, banks, fintech businesses, and hospitals just to avail facilities for free and to launder money. Therefore, the financial and other businesses are obliged to incorporate the know your customer (KYC) compliance in order to determine the potential risk possessor and to deter fraud.

On the other hand, the clients’ behavior is also changing as does the world. To sustain in the fast-moving world the businesses have to employ tech solutions and reshape their traditional way of verifying customers. To streamline business workflows with clients, digital verification software is getting insightful.

Client KYC Verification- Making Businesses Procedures Flawless

The people associated with banking or other financial corporations are well aware of KYC AML compliance. These are a set of standards and laws established to identify the real identity of the new clients. It’s mandatory for banks to streamline their procedure with the KYC solution. 

Know your customer is a fully automated procedure powered by artificial intelligence technology which is capable of providing instant results in real-time. This verification process also allows the banking sector to authenticate customers’ identity as well as their government-issued documents before getting them enrolled. The criminal activists are pretty much aware of the loopholes and insufficiency present in the verification procedures through which they tend to manipulate the system for illicit gains. 

KYC regulation ensures utmost fraud protection by determining and deterring the potential risk and threats such as database breaches, identity fraud, synthetic identities, document fraud, money laundering, and terrorist financing. Having in mind the adverse consequences of the criminal attacks, the global regulatory authorities have provided regulations and guidelines which the companies are obliged to incorporate into their systems. Due to this the identity fraud, financial losses, and unauthorized access to the accounts/system can be prevented.

Key Components of Automated KYC Verification System- 

The SaaS providers have come up with the automated know your customer software which is intended to develop for the financial as well as other businesses so that they can protect themselves from criminal activities and to achieve regulatory obligations. Such identity validating systems are loaded with state-of-the-art technologies like artificial intelligence, machine learning, deep neural networks, biometric technology providing companies effective ways to verify their customers at a glance.

Identity Document verification

Document authentication is quite a simple and accurate way for financial enterprises, e-shopping platforms, crypto exchanges, and various other digital businesses to determine their customers’ identities through KYC documents. For this, the businesses gather government-issued documents like ID cards, passports, driving licenses, utility bills, and other necessary documents that the company requires to fulfill requirements for their verification procedures. The document verification is loaded with the OCR/ICR technology through which the personally identifiable information of the customers is extracted in order to check its authenticity. Furthermore, the documents also undergo various checks in order to verify their originality.

Facial recognition 

Facial biometric authentication is becoming a new trend nowadays. Face verification due to its capabilities is widely adopted by financial companies as they tend to face the constant risk of monetary crimes like money laundering, tax evasion, terrorist funding, and bribery. It also improves its cybersecurity protocols. The face authentication feature scans the physical characteristics of the customer using biometric technology. After facial scanning, the client’s identity is verified on the basis of 3D depth perception, liveness detection and also determines the signs of spoof attacks. 

Address verification 

It’s a viable part of the KYC compliance online verification solution. Address validation services enable most businesses ande-shopping platforms to verify users globally. It’s quite necessary in order to combat identity fraud. On the other hand, this is also an effective way of shipping orders without any mishaps. Address verification is conducted by acquiring various documents such as tax bills, passports, ID cards, utility bills, and bank statements. However, address verification systems are also capable of cross-checking the customers’ addresses using various documents and in case if the documents are stolen or modified, the system will automatically terminate the verification process.

Final Thoughts

The banking sector and various other Digital Identity businesses must adopt online identity verification solutions in order to combat identity thefts seamlessly. This is an ultimate way of detecting bad actors and eliminating the risk of financial losses through their systems. Identity verification systems also help out to streamline KYC compliance. Due to this, businesses tend to become trustworthy.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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