Additionally, there are many other practices that can be considered as belonging to selfie spoofing such as taking pictures using any camera or devices capturing screens or printed papers for pretending to be real ones. The method is used commonly among scammers aiming at stealing identities or unauthorised access to systems. Thus, this advanced fraud creates significant obstacles for businesses ranging from the online gambling sector to lending.

A recent report has revealed that selfie spoofing is a common phenomenon in sectors like online gaming, marketplaces, lending and credit cards. Also noted in the report was an alarming statistic stating that 49% of all selfie spoofing attacks target individuals aged 50 years and older. This section of the population, often with significant assets and showing a lack of technological savvy, is more likely to be targeted by scammers. Typically, scammers would take photos of stolen IDs (image-of-image document). However, spoofing through self-images goes one step further: here they use a well–made photo of someone else (mostly derived from social media) to pretend as if they are the holder of that ID. As selfie spoofing and document-based identity fraud threats continue to rise, organisations are resorting to rigorous identification verification methods.

In these cases, organisations take help from trustworthy identity verification providers. IDMERIT is a reputable provider of authentication services and it offers an all-inclusive solution for these concerns. Fortunately there are solutions that can help combat this growing menace. We have developed a solid Video KYC (Know Your Customer) platform that successfully prevents any possible selfie spoofing attempt at its initial stage. During the conversation, the user shows his or her ID and follows the guidance given by an expert so as to ensure whether the person matches the face given in the ID. With multiple levels involved, it becomes virtually impossible for fraudsters who have managed to get access into an account using somebody’ s official papers on different sites like social media or some other type of phone application. Every industry can reduce selfie spoofing related fraud risks through implementation of IDMERIT’s Video KYC solution which tackles document tampering too.

The post The Rise of Selfie Spoofing and How IDMERIT is Fighting Back! appeared first on IDMERIT.

Blockchain which is the underlying technology behind cryptocurrencies such as Bitcoin operates as a decentralised digital ledger that records transactions across a network of computers. It is suitable for keeping sensitive information like customers’ identities due to its immutable and transparent nature, securely and without tampering with them. By utilising blockchain for this purpose, companies can bring about identity verification efficiencies thereby cutting down the expenses attached to it while becoming more regulatory compliant.

Here is How the KYC Environment is Changing Due to Blockchain:

Enhanced Data Security: The blockchain records information in a secure and immutable ledger which makes it almost impossible to change or manipulate data. This ledger allows authorised institutions to access and verify customer information quickly without having to ask for repeated documents.

Streamlined Onboarding:

Blockchain can lead to significant reductions in onboarding times by enabling secure sharing of data. Customers need only to be KYC’d once, with their verified details available for other networks used by financial institutions. Consequently, customers enjoy more convenience and less time spent when transacting with different organisations.

Reduced Costs:

Conventional KYC procedures come with high administrative costs that are incurred by both businesses and clients. By automating processes and streamlining the flow of data, blockchain technology can greatly minimise such expenses hence freeing up the money for different tasks.

Improved Risk Management:

Blockchain enables real-time verification of customer details which helps institutions better evaluate risks and make informed choices.

To sum up, the use of Blockchain technology is going to disrupt the way we do KYC offering improved security, efficiency gains as well as cost savings. While the technology matures, businesses can leverage identity verification solutions and know your customer solutions from IDMERIT to implement robust and user-friendly KYC approaches.

The post How is Blockchain Transforming The KYC Space appeared first on IDMERIT.

The Rise of Fraud and the Need for Business Verification Services

Business verification solutions lie at the forefront of defence against fraud. Fraudsters can commit fraud in various forms, from fake companies set up to identity theft used to gain access to sensitive information. Banking and FinTech institutions are prime targets for business verification fraud. According to a Regula Forensics study, a whopping 94% of these organizations have come across this kind of fraud. These figures show the urgent need to implement verification procedures in businesses of all sizes to protect them from financial fraud.

Business verification services encompass a variety of advanced tools tailored to authenticate the legitimacy of businesses, trustworthiness in transactions and transparency in their operations. Business verification software provides insightful knowledge on a company’s identity, operations, and compliance status.

Here is a better view on how business verification services help in minimizing fraud:

KYB Verification:

Know your business verification gives you a better understanding about a company’s registration, operations, structure, legitimacy and transactions.

KYB vs KYC:

It is important to know the difference between the KYC and KYB processes. KYC identifies an individual’s identity, whereas KYB verifies a business’s identity and legitimacy.

Streamlined Verification Process:

Business verification software involves a list of tasks to verify a business. The software helps analyze data quickly while saving companies valuable resources and time.

The Role of KYB Solutions in Mitigating Fraud

In the intricate online interactions, KYB solutions underpin trust and security. A more holistic assemblage of checks for such verifications goes beyond merely confirming an organization’s identity. It is essential to realize that Know Your Business—a concept rooted in Know Your Customer protocols—forms the core of business verification services. Know your business solutions help companies identify their corporate clients, evaluate associated risks, and comply with applicable standards.
Here’s how KYB solutions come in:

Unmasking Fraudulent Entities:

KYB solutions apply advanced techniques for revealing shell companies, pretenders, and fraudulent entities in organization. This prevents organizations from falling victim to cunning thieves’ comprehensively planned tricks.

Exposing Financial Risks:

Experts using KYB can identify possible financial instability or insolvency cases. This enables firms to make informed decisions concerning potential partnerships, avoiding future difficulties resulting from lack of money.

Enhancing Regulatory Compliance:

Compliance with KYC/KYB requirements is obligatory in various sectors. By ensuring that all these specifications are implemented, businesses save themselves from heavy penalties and reputation loss, mostly incurred due to misconduct or inadequacy of some provisions under relevant law.

Benefits of Implementing KYB KYC

It is very important to have a well defined and implemented KYB KYC policy which helps in mitigating risk as well as building trust. The purpose of KYC is to confirm the identities of individuals while KYB investigates the genuineness as well as financial soundness of companies you are dealing with. In this manner, one can:

Deter fraud:

This will help you see signs of uncertainty among people therefore escaping from being duped or participating in money laundering schemes.

Strengthen your defense:

Minimize exposure of your network or supply chain to exploitation.

Assess before deciding anything:

This makes it possible for starting on a credibility foundation that relies on verified information from business partners and customers.

Choosing the Right KYB Company

The most significant thing is to opt for the accurate KYB supplier so that your business verification strategy works well. They must have a good reputation and worldwide presence that matches your corporate requirements and data security apprehensions. The best KYB provider will also have a full suite of checking tools like access to public registries, credit bureaus and sanctions lists.

Furthermore, efficiency requires an easily usable platform that facilitates the checking process and can be integrated into current systems. One of the leading companies in providing KYB solutions is IDMERIT which has a robust platform, global coverage, 24*7 services and is committed to accuracy. Their AI-supported verification process ensures fast and reliable results which enable companies to make informed decisions fearlessly.

IDMERIT, on its part, has IDMkyb; this service is purposely designed for smooth business verification processes across the globe. It allows instant business identity verification, simplifies onboarding and helps firms form partnerships or trust quickly. For instance, where validation needs are running manually can consume time as well as cause errors. IDMkyb records higher match rates with strict adherence to the most comprehensive data encryption and security protocols required by law.

The result? You can verify business information in real-time, thus enabling you to make informed choices.

Concluding Thoughts

In conclusion, fraud perpetration calls for robust commercial verification services that shield transaction integrity. Adopting measures such as using KYB solutions and associating with reputable KYB providers are some ways businesses can safeguard their firms even during uncertain times. Businesses today must show transparency, build trust, and conform to compliance standards if they seek success amidst complexity.

The post How Business Verification Services Shield You From Today’s Fraudulent Era? appeared first on IDMERIT.

Contents

• Reasons Why One Should Invest in KYC Companies?
• Challenges Faced By KYC Companies in 2023
• Fraud & Money Laundering Cases of 2023
• IDMERIT: A Trusted and Reliable KYC Solution Provider
• Conclusion

Businesses must remain informed about the top KYC companies since they are concerned about complying with regulatory standards and protecting themselves from identity fraud. These companies also offer document verification, transaction monitoring, and customer due diligence solutions, helping Banks, Cryptocurrency industries, Healthcare sector, Insurance sectors and
Fintech companies fight financial crime.

Reasons Why One Should Invest in KYC Companies?

1. Verifying User Identities- KYC systems are ubiquitous in the financial industry as a crucial tool for verifying user identities.
2. Combating Money Laundering- KYC verification companies provide robust KYC solutions to safeguard user privacy, combat money laundering, and eradicate financial fraud.
3. Specialised KYC Providers- Specialised KYC providers develop innovative solutions to enhance the comprehensiveness and accuracy of user identification processes.
4. Regulatory Compliance Assurance- KYC companies ensure businesses comply with evolving regulatory standards, reducing legal risks and financial penalties by helping enterprises navigate complex compliance requirements.
5. Risk Mitigation and Enhanced Due Diligence- KYC companies conduct thorough background checks and due diligence on individuals and businesses.
6. Customer Trust and Reputation Building- Implementing KYC measures demonstrates customer security and privacy commitment. This, in turn, fosters trust among clients and contributes to the overall positive reputation of a business.

Challenges Faced By KYC Companies in 2023

As the digital realm expands, seamless integration with various systems and databases becomes increasingly critical, adding another layer of complexity for KYC companies. In 2023, KYC companies faced many challenges as they navigate the evolving landscape of identity verification.

• One significant hurdle is the constantly changing regulatory environment, with governments worldwide tightening their grip on digital transactions to combat financial crimes.
• Staying abreast of these regulatory shifts and ensuring compliance with the latest standards requires KYC companies to be agile and adaptive.
• Moreover, the rapid advancements in technology pose another challenge, as cybercriminals continually develop more sophisticated methods of identity fraud.

KYC providers must invest in innovative solutions to stay ahead of these malicious actors and safeguard sensitive information effectively. The challenges KYC companies face in 2023 underscore the industry’s dynamic nature, requiring constant innovation and adaptability to address regulatory, technological, and operational complexities.

Fraud & Money Laundering Cases of 2023

Several fundamental changes and updates were made to KYC regulations in 2023, including an increased focus on digital identity verification. As more businesses moved online, KYC regulations evolved to incorporate methods for verifying digital identities, including biometric authentication or blockchain-based methods.

Here are some stats that show the current situation of fraud and money laundering in the country:

• Money laundering plays a pivotal role in various criminal operations; it remains a persistent challenge impacting global economies significantly. The annual estimate of laundered money is nearly 5% of the worldwide GDP, totaling an astonishing $800 billion.
• A case in point is HSBC, an international bank that faced an $85 million fine due to its failure to uphold proper records as part of its AML measures, resulting in a lapse in filing suspicious activity reports (SARs).
• Liberty Reserve, a Costa Rican cryptocurrency platform, was implicated in $6 billion worth of suspected money laundering activities, posing a threat to early cryptocurrency enthusiasts.

IDMERIT: A Trusted and Reliable KYC Solution Provider

IDMERIT stands out as a trusted and reliable solution provider in KYC services. Offering a comprehensive suite of solutions, IDMERIT has established itself as a go-to resource for businesses seeking robust identity verification services. As a leader in KYC services, IDMERIT stands out as a trustworthy and reliable solution provider. With its comprehensive solution suite, IDMERIT is the first choice for businesses seeking robust identity verification services. IDMkyc provides KYC solutions that ensure a thorough and secure verification process.

Enhanced AML protection is made possible by IDMaml, which extends the platform’s capabilities. IDMscan, the flagship product of IDMERIT, offers accurate and efficient ID verification with the help of advanced scanning technology. Its video KYC solution, IDMlive, which incorporates live interactions to enhance the verification process, further demonstrates the company’s commitment to innovation. Despite today’s complexities of identity verification, IDMERIT remains a trusted partner for businesses.

Below are few more KYC companies that are reliable for users in 2023:

KYC Germany: KYC Germany is a trusted provider of robust identity verification solutions, focusing more on video KYC and aligning with the regulatory standards set by BaFin in Germany. Recognized for compliance and innovation, it significantly contributes to the evolving identity verification landscape.

KYC Spain: KYC Spain, a trusted and reliable KYC service provider in Spain, is a top choice for businesses seeking secure transactions in 2023, renowned for its robust solutions and reliable services.

KYC UK: KYC UK is a leading provider of identity verification services. It assists UK businesses in facilitating seamless customer onboarding and ensuring reliability in the complexities of identity verification, making it a trusted ally in 2023.

KYC Sweden: KYC Sweden is a trusted provider of KYC solutions, specialising in robust identity verification processes for businesses and financial institutions, ensuring secure customer onboarding and digital compliance in 2023.

Conclusion

In conclusion, as the digital landscape evolves, KYC companies are at the forefront of ensuring secure and compliant online transactions. IDMERIT and other industry leaders exemplify the commitment to innovation and reliability in the face of evolving challenges, making them indispensable partners for businesses navigating the complexities of identity verification in 2023.

The post How to Find the Right KYC Company For Your Organisation? appeared first on IDMERIT.

CONTENTS

• What are the challenges faced by crypto exchanges without KYC?
• The KYC Landscape in Crypto Exchanges
• KYC Builds Trust and Lowers the Risk of Transparency
• Benefits of KYC in Crypto Exchanges
• Overview of Crypto Exchanges in 2023
• The Role of KYC Solution Providers in Securing Crypto Exchanges
• Unlocking Efficiency with IDMERIT

What are the Challenges Faced by Crypto Exchanges Without KYC?

Before the widespread adoption of KYC in the cryptocurrency industry, there were several challenges:

1. Possibility of increasing Fraud: Cryptocurrencies, in their early days, offered a high degree of anonymity. While this was seen as a benefit by many, it also attracted individuals involved in illegal activities such as money laundering and fraud.
2. Reputation Risks: The association of cryptocurrencies with illegal activities tarnished their reputation. Trust and acceptance in the broader financial ecosystem were hindered, slowing down mainstream adoption.
3. Financial Risks: Without robust KYC solutions, financial risks and scams increase. Financial criminals who wanted to commit fraud were often attracted to crypto exchanges with no transparency or accountability. This led to financial losses.
4. Security Threats: The absence of KYC measures has made cryptocurrency exchanges more susceptible to hacking and cyber threats. These vulnerabilities resulted in significant losses for both users and platforms.

The KYC Landscape in Crypto Exchanges

KYC in crypto exchanges refers to the process of verifying the identity of users. It’s a robust mechanism that helps crypto platforms establish the real-world identities of their customers. The primary goal is to prevent fraudulent activities and to create a secure environment for trading digital assets.

To implement KYC effectively, crypto exchanges often turn to KYC solution providers. These solution providers offer a suite of services tailored to the unique needs of the cryptocurrency industry. By collaborating with these experts, crypto exchanges can streamline the onboarding process, enhance security, and reduce the risk with financial regulations. Below is how KYC solutions unlock the power in crypto exchanges:

1. User Verification: KYC solution providers use a variety of methods, including document verification and facial recognition, to ensure users are who they claim to be.
2. Risk Mitigation: By assessing user-profiles and tracking their activities, KYC solutions help exchanges identify high-risk individuals or entities. This proactive approach reduces the potential for financial crimes.
3. Enhanced Security: By implementing robust identity verification, crypto exchanges protect themselves and their users from security breaches and unauthorised access.

KYC Builds Trust and Lowers the Risk of Transparency

Financial misconduct, spanning a spectrum of illicit activities such as tax evasion, bribery, graft, financing of terrorism, and cyber intrusions into online banking systems, imposes an annual financial burden of approximately $1.4 to $3.5 trillion globally, with an estimated $2 trillion channelled through the laundering process.

Notably, crypto exchanges stand as susceptible targets, experiencing losses amounting to $4.26 billion in 2019 alone. The integration of Know Your Customer protocols within the realm of cryptocurrency and crypto exchange platforms can play a pivotal role in the identification and authentication of users, thereby diminishing the risk of financial crime and unauthorised operations.

Benefits of KYC in Crypto Exchanges

Implementing KYC solutions in crypto exchanges brings a multitude of benefits. These include:

1. Enhanced Trust: Users are more likely to trust and engage with exchanges that prioritise security and trust. KYC solutions make the decision-making process easy on the basis of identity verification.
2. Reduced Fraud: KYC solutions act as a deterrent to fraudsters and significantly reduce the incidence of fraudulent activities.
3. Combating Money Laundering: KYC & AML solutions help crypto exchanges avoid hefty fines and reputational damage. These solutions help in recognizing people involved in money laundering and terrorism financing.
4. Reduced Operational Costs: Automated KYC processes streamline user onboarding and reduce the need for manual verifications, cutting operational costs.
5. Global Expansion: Crypto Exchanges that prioritise KYC can expand to more countries by demonstrating a commitment to international regulations.

Overview of Crypto Exchanges in 2023

In 2023, cryptocurrency prices demonstrated remarkable resilience, especially considering that both Bitcoin and Ethereum had their worst annual performances in 2018. Despite a relatively unexciting performance in September, Bitcoin prices have surged by 63.3% year-to-date, while Ethereum prices have increased by 40.2%.

According to the most recent research conducted by Coinfirm, it has come to light that 69% of the 216 crypto-related businesses under scrutiny do not possess “comprehensive and transparent” KYC solutions, a critical component of their AML initiatives.

A separate report from CipherTrace further underscores this concern, indicating that among the top 120 crypto exchanges, one-third exhibit subpar KYC processes, and two-thirds are deficient in maintaining robust KYC policies.

The Role of KYC Solution Providers in Securing Crypto Exchanges

KYC solution providers help to authenticate business identities for crypto industries. They offer a range of services that encompass identity verification. The following identity verification methods are essential for crypto exchanges to stay secure and stable:

1. Document Verification: KYC solution providers enable exchanges to verify the authenticity of identity documents, such as passports and driver’s licences.
2. Biometric Authentication: Facial recognition technology ensures that the person submitting the documents is the same as the one in the ID.
3. Watchlist Screening: KYC solution providers allow exchanges to check users against global watchlists, identifying politically exposed persons (PEPs) and other high-risk individuals.
4. Ongoing Monitoring: Regularly updated profiles and transaction monitoring help exchanges identify changes in user behaviour that may indicate illicit activities.

Unlocking Efficiency with IDMERIT

There are several key strategies through which a crypto management platform can enhance security:

• Advanced identity verification
• Efficient onboarding process
• Ongoing monitoring
• Risk assessment tools

IDMERIT provides robust identity verification and Know Your Customer solutions. After harnessing these identity verification solutions, you’ll be able to manage custom workflows tailored to different usage scenarios and incorporate a range of verification methods to align with KYC methods. As a result, we not only guide in maximising conversion rate but also significantly enhance the efficiency of the verification pipeline.

If you’re interested in discovering how IDMERIT can assist you in achieving identity trust and security for your cryptocurrency exchange, please don’t hesitate to get in touch with us or join our community for a direct conversation with our product team. We’re here to engage in a discussion with you!

The post A Comprehensive Guide of KYC in Crypto Exchanges in 2023 appeared first on IDMERIT.

This blog helps to identify that many leading identity verification providers have now started offering Video KYC solutions, making it easier for businesses to onboard customers securely and efficiently.

CONTENT

• What is KYC? How does it help in Reducing Fraud and Authenticating a Customer’s ID document?
• What is video KYC?
• How did Video KYC replace traditional KYC methods in identifying a user’s identity?
• What are the benefits of Video KYC?
• Importance of Video KYC in Different Countries
• Conclusion
• More About Us

What is KYC? How does it help in Reducing Fraud and Authenticating a Customer’s ID document?

Know Your Customer (KYC) is an identity verification process used by businesses and financial institutions to verify the identities of their clients. KYC has become a powerful tool for industries to protect themselves and their clients from the ever-evolving landscape of fraud and risk.

The main aim of KYC is not only to prevent fraud but also to authenticate user’s identities to ensure that they are who they claim to be. It also helps in complying with regulatory requirements and safeguarding sensitive customer data.

Our robust identity verification solutions can help financial institutions and businesses effectively reduce the risk linked to fraudulent activities. These solutions incorporate cutting-edge technologies like face recognition, document scanning, and biometrics to guarantee the precision and authenticity of the user’s identity.

The KYC process works by collecting and verifying essential information from individuals to confirm their identity and make sure they are who they say they are. This typically includes personal details such as name, address, date of birth and often involves document verification, like passport and driver’s licence.

What is video KYC?

In this advanced world, digital KYC has become paramount. Video KYC, or Video Know Your Customer, is an advanced form of KYC that is used for verifying a user’s identity remotely through a Video call. Video KYC solution providers offer video KYC solutions to verify customers’ identities by checking their documents and matching them with their real-time appearance.

These solutions involve a live video call between an agent and a client. The purpose of this live video call is to verify identities, which reduces the risk of fraud and enhances customer convenience and security. The agent on the other side of the video call verifies the user’s identity by verifying their details and matching them with their real-time appearance.

Video KYC has now been adopted by several industries, including Banking and Finance, the Cryptocurrency exchange industry, fintech companies, Education, Healthcare, as well as the Insurance sector. Additionally, businesses can integrate Video KYC into their systems through Video KYC APIs, making the process even more streamlined and efficient.

How did Video KYC replace traditional KYC methods in identifying a user’s identity?

Before entering the digital world, KYC was performed manually with conventional methods. It was one of the main concerns for banks and other financial institutions; e.g., When the banks used to onboard clients, they asked them to fill in forms, scan their identity documents and then make them wait for an answer. In some cases, they also used to visit client’s residences to check whether they had given the correct address proof or not. This was no doubt a time-consuming job and also cost a lot of money.

In contrast, Video KYC has emerged as a revolutionary solution for this problem, replacing traditional KYC methods for identity verification. Unlike complicated paperwork and in-person visits, Video KYC solutions leverage video conferencing platforms and APIs to streamline the process. It has undoubtedly reduced the cost and saved time and effort of both the client and financial institutions. It is more suitable than the traditional method because it ensures security and accuracy at a higher level.

Video KYC platforms enable individuals to authenticate their identities via secure video calls, ensuring immediate verification and minimising the potential for fraudulent activities. The adoption of Video KYC has revolutionised the landscape of identity verification, enhancing speed, efficiency, and user-friendliness while diminishing the dependence on conventional KYC approaches.

What are the benefits of Video KYC?

Video KYC is more accurate because automated algorithms can detect features and patterns that are invisible to the human eye. There are several ways that serve as a benefit of Video KYC;

• It is extremely effective at preventing deep fake, spoofing and other identity frauds.
• It saves both time and cost for an individual as well as a company.
• It helps onboard users safely and securely.
• It eliminates the need for physical presence, allowing identity verification remotely.
• Video Kyc solution providers guarantee the security of video calls and data, adhering to rigorous regulatory standards.
• It is beneficial for individuals as well as banks and financial institutions.

The video KYC process involves a live video call between a user and a verification agent. During the call, the role of the agent is to review the customer’s identity documents, such as passports or driver’s licences, ensuring their authenticity. This real-time interaction enhances the accuracy of identity verification and reduces the risk of fraud.

It saves resources and helps in customer onboarding, becoming a win-win situation for both businesses and users.

Importance of Video KYC in Different Countries

Video KYC has taken the lead due to their immense transformative impact in the field of digital identity verification. Here are a few countries that have made Video KYC mandatory in digital identity verification procedures-

1. Germany- Video KYC has been a part of their regulatory landscape since 2015 when Germany’s financial regulatory body (BaFin) introduced Video KYC requirements for remote verification.
2. Spain- Since 2018, SEPBLAC, their AML authority, has demanded an authorised Video KYC process for financial institutions.
3. India- According to Section 18 of India’s Master Direction on KYC, financial institutions and banks have to include Video KYC in their verification processes mandatorily. They are also told to include Video KYC, specifically in the form of Video KYC interviews.
4. European Union- It has been made compulsory in the European Union that a Qualified Electronic Signature (QES) will only be granted on one condition when the individual has undergone a video verification.
5. United States- Video KYC has entered various sectors, including Fintech, healthcare and banks. Companies are dependent on video KYC platforms to verify the identities of customers and patients, ensuring data security and regulatory compliance.

Many national anti-money laundering (AML) laws require or allow video KYC for high-risk customers and transactions. Here are some jurisdictions where video identification can be used for KYC:

• Australia
• Germany
• Canada
• India
• Ireland
• Japan
• New Zealand
• Singapore
• South Korea
• United Kingdom
• United States

Conclusion

Video KYC solutions have built a position of their own in this digital era. Video KYC companies have played a vital role in making these solutions accessible across various industries and countries. The transformation from traditional KYC methods to Video KYC has also been remarkable. From Germany to the United States, Video KYC is becoming a mandatory component of the identity verification process, further validating its role as the future of digital identity verification.

More About Us

IDMlive is an innovative solution offered by IDMERIT, revolutionising the KYC process for video verification. IDMlive not only verifies an individual’s presence but also features the ongoing verification process at the dashboard. It also ensures compliance with several regulations like KYC, GDPR, and AML.

If you are seeking an efficient video KYC solution to authenticate your customers’ identities, IDMERIT’s Identity Verification platform is worth looking at. Reach out to one of our Identity Experts and get a no cost, no commitment product demonstration along with consultation tailored to your specific needs.

The post Video KYC: The Future Of Digital Identity Verification appeared first on IDMERIT.

Identity verification for the fintech industry has certain best practices to ensure a world-class automated customer onboarding experience without compromising the AML-KYC compliance of a fintech business. In this blog, we will read how advanced automation has changed the way fintech does business and performs its KYC checks securely and efficiently. The fintech industry segmentation is huge, with investment & capital, digital lending, ecommerce, data solutions, insurance & healthcare, and payments all falling under the scope of fintech.

The fintech industry has the highest number of start-ups today. Robotic Process Automation (RPA) in fintech helps companies speed up their remote onboarding process while strictly adhering to the fintech guidelines and regulations.

A Unified API System Approach for Fintech

Empowering Robotic Process Automation (RPA) in fintech is vital to maintaining a centralized system with a unified API for business operations. Gone are the days when customers had to wait for a month for their onboarding approval. To survive in the competitive market, automated client onboarding software fulfills the norms of KYC for fintech companies.

Client databases, document IDs, client profiles, and background sources are linked and stored strategically to perform frictionless multiple verification methods using a centralized API system.

Automated Customer Onboarding with Single Step Integration

Seamless customer onboarding steps should not come at the cost of risking the AML-KYC regulatory standards, or a fintech may have to pay hefty non-compliance fines to the authorities for such negligence. The user identity, individual or business, should be matched against strong and authentic datasets to assure compliance with the due diligence procedures.

An automated client onboarding software offers multiple methods of identity verification for the fintech industry with single-step integration. This state of art software comes with various inbuilt features, for instance, two-factor authentication (2FA) or a multi-factor authentication onboarding method. Identity checks are enhanced thru liveness detection, biometrics authentication, and facial recognition technologies.

A Tailormade KYC for Fintech Companies

Fintech trends are continuously changing. Industries must remain updated with the Robotic Process Automation (RPA) in fintech.  The robotic identity verification process for the fintech industry encapsulates various anti-money laundering (AML) and Combating the Financing of Terrorism (CFT) regulatory frameworks. Fintech businesses can leverage various tailormade and automated customer onboarding technologies to scale up their onboarding operations, combating regulatory and technological challenges.

It is on the part of the businesses to follow the national and international regulations and remain fully AML-KYC compliant. Customized automated client onboarding software has certain inbuilt features and is continuously upgrading. The core AML-KYC and Know Your Business (KYB) regulatory guidelines like FATF, GDPR, and international sanctions features are also ingrained in the software that must apply to businesses.

Audit Trail and KYC Automation in Fintech

Identity verification for the fintech industry not only means onboarding efficiency but also extends continuous transaction monitoring and performance of due diligence of the entire customer lifecycle. These transaction-monitoring red-flag rules vary from industry to industry depending on the nature and operational region of the company.

Monitoring client behavior and suspicious transaction activities also fall under this ambit—an ideal automated client onboarding software auto-generates red flags based on the scenario or pre-historical dataset model. And maintains an audit trail based on the client-behavioral patterns.

Fintech demands a mass user-onboarding process automation with the best UX-UI KYC verification interface to reduce friction at the minimum possible levels. IDMERIT extends KYC automation with IDMkyc and IDMscan products. We use AI Machine Learning technologies to verify identities against the most authentic databases. IDMkyb authenticates worldwide businesses to offer a secure merchant onboarding method for fintech enterprises.

The post Automated Client Onboarding and Identity Verification for Fintech Industry: Best Practices appeared first on IDMERIT.

BFSI ID verification automation is important to release banks of regulatory burden and avoid heavy non-compliance fines they often have to pay due to unmanageable workload and subsequent negligence in KYC risk mitigation procedures.

What are the main KYC Verification Steps in BFSI ID Verification Automation?

KYC automation in the BFSI sector is the need of the hour. Recently, the industry has witnessed an increasing number of financial crimes in the banking and insurance sector linked to converting illicitly gained money into legally acceptable forms. Let’s talk about the main BFSI Robotic Process Automation (RPA) processes that could make KYC verification steps in the BFSI sector time and cost-effective to a great extent.

Merging BFSI ID Verification Automation with Great Customer Experience

Low code automation to connect databases with technology is helping the banking and finance industry to create a user-friendly onboarding process for their customers. Today, every organization is seeking a competitive advantage over its equals. Financial organizations continually improve the customer experience while adhering to fraud mitigation and regulatory standards.

BFSI ID verification automation has helped banks to structure their various operations. Orchestrated data linked to various systems are processed and placed together in one securely accessible location. This system has accelerated commercial lending and onboarding processes as the bank employees get access to a 360° customer KYC life-cycle view and respond in real-time with minimal friction.

Fraud Risk Mitigation with KYC Automation in BFSI Sector

Financial crimes in the BFSI sector have come of age as sophisticated banking cons are untraceable, and today only 20-25% of the customers can recover the losses. Many fraud case studies have shown that the siloed data storage structure – in banks and conventional financial institutions – has made fraud risk mitigation cumbersome.

Even today, most financial organizations do not have a platform for a holistic view of customer data and life cycles. Finding suspicious behavior patterns for suspicious activity reporting (SAR) is challenging for the risk team. Effective deployment of a BFSI automation tool can stimulate SAR filings by tracking customer behavior in real-time and connecting the patterns with the data points to produce customer case management.

Many advanced automation tools auto-populate the SAR filings based on customer risk patterns and auto-generate the submission forms for timely inspections.

Accelerate your digital transformation journey with IDMerit customer onboarding and BFSI Robotic Process Automation (RPA) solutions. Learn more about automated KYC verification steps and book a demo to see how IDMerit flagship products IDMkyb and IDMkyc help businesses with KYC automation in the BFSI sector across various global industries.

The post Identity Verification and KYC Automation in the BFSI Sector appeared first on IDMERIT.

• Easy integration with the existing security infrastructure
• Recent trends in biometric technology
• The shifting identity verification trends with Blockchain technology
• Frictionless KYC-KYB identity verification processes
• Growing remote work culture post-pandemic
• Rising awareness of AML-KYC Compliance worldwide 

From time to time, regulatory developments in AML-KYC Compliance have molded the identity verification trends and the technologies in use. Today, securing a user’s identity is as important as the user-identity verification process itself. Hence, the AML-KYC industry has greeted various hi-tech innovations to create a safer global identity verification market for the financial and regulated sectors.

Let’s discuss how tech advancements dominate the current global identity verification market and the kind of outgrowth which regulated industries look forward to keeping up with the changes to ensure the better safety of their onboarding customers and protection against identity theft.

Easy integration with the existing security infrastructure

The first and foremost is embracing easy and compatible AML-KYC integration with the existing organizational security structure. For example, financial and regulated institutions prefer identity verification tools that quickly integrate within their existing systems, as they don’t want any turbulence in the core technologies which are in operation for years. In addition, advanced integration methods check the compatibility levels during the prototype phase, making the AML-KYC implementation process extremely time and cost-efficient.

Recent trends in biometric technology

Next, recent trends in biometric technology have overcome various longstanding security loopholes. Biometrics identity solutions verify identities through iris and retina scans, fingerprints, palmprints, facial recognition, and facial comparison technologies. With every new standard, a new iteration in the biometrics ID verification is set. As a result, many regulated products and services are now relying on this technology to fight identity theft.

With ID theft and financial fraud among the top AML regulatory concerns, various RegTech giants have conceptualized and introduced innovative prototypes in the digital identity verification market to combat the growing money laundering threats. Thus, Multimodal Biometrics, i.e., two or multi-factor biometrics verifications, is emerging as the most powerful option for businesses from a security standpoint. Furthermore, digital identity is not only the identity stated in one’s id documents; it also entails the individual’s univocal identity, with geolocation, social networking, and biometric features.

The shifting identity verification trends with Blockchain technology

AML-KYC connoisseurs assume Blockchain technology will mark its way in the global identity verification market, 2023-25. If we evaluate the recent identity verification trends from a technical perspective, Blockchain is expected to grow manifold, disrupt the AML industry, and bring information decentralization in the next decade. On the contrary, there is ongoing research to overcome challenges like deepfakes in Machine Learning and Artificial intelligence technologies. Besides, identity verification on Blockchain-based technology is relatively more secure, as this trustless record-sharing method eliminates the middleman channel while authorizing and streamlining the identity process.

Frictionless KYC-KYB identity verification processes

Identity verification is now apparently inevitable in both financial and non-financial industries. For example, any process that requires businesses or individuals to open accounts, pay online, and deal with financial instruments is subject to Know Your Customer (KYC) and Know Your Business (KYB) authentication. Similarly, every industry that deals with the mass user onboarding process must also apply advanced identity verification methods as part of AML Compliance measures.

Though a growing number of individuals and businesses today are looking for a more secure way to verify their identity, contrarily, many people have started perceiving the onboarding or diligence process as an added burden owing to the recent rise in data breaches. Also, biometric, eco-sign or ID proof procedures create additional friction in the user experience. On the face of it, there is a critical need for sleeker technologies to verify user identity without friction or unwanted halts during the onboarding process, as that could make users grow skeptical to the extent that they might decide to withdraw their submissions.

Growing remote work culture post-pandemic

An upward graph in the digital channel adoption post-COVID-19 pandemic has also shown increased cyber threats and safety vulnerabilities. The demand for an all-inclusive digital identity verification market is surging continuously to combat these security threats. New verification methods have responded aggressively to the intensifying cyber terrors and other susceptibilities at organizational levels. The vigorous scope of remote operations has brought forth the bring-your-device (BYOD) trend, which is now driving the identity markets. BYOD trend also has derivatives like bring-your-own-phone (BYOP), bring-your-own–technology (BYOT), and bring-you-own-personal-computer (BYOPC).

Organizations have widely adopted biometric verification methods as their integral security measures as an increasing number of work-front operations are performed remotely post-pandemic. As remote operations are becoming a new normal, hand-in-hand fraudsters are adopting new technologies to trick the victims into the sophisticated email, SMS, and other identity scams. Customers are now more susceptible to phishing, account takeovers, lending fraud, and other identity cons. Hence, organizations must perform proper due diligence checks to detect and combat identity threats in real time and save themselves from financial and reputational loss.

Rising awareness of AML-KYC Compliance worldwide

Identity verification procedures have been in application for years. Still, with emerging regulations, financial and regulated organizations are now more open to implementing advanced Blockchain, Artificial Intelligence, and Machine Learning algorithms to keep up with the AML-KYC regulations.

International laws and regulations, including the U.S. Bank Secrecy Act (BSA), EU Anti Money Laundering Directives (AMLD), and Financial Action Task Force (FATF) Recommendations, have brought evolving standards to the AML-KYC industry. And to maintain these standards, businesses must maintain the AML regulations, and financial institutions must introduce up-to-date technologies to identify individuals and businesses. Also, in the wake of recent data breaches, enterprises have increased their due diligence budget to organize safer and frictionless onboarding of their customers.

IDMerit is a global identity verification market pioneer and offers the best-in-class identity verification solutions to businesses worldwide. Book an IDMerit product demo with our AML-KYC Compliance expert; we help global businesses remain AML regulatory compliant.

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