Mitigate Possible Impersonation Risks And Identity Theft With Video KYC
In an ever-evolving digital world where business’s sensitive information is available online, they face the exponential danger of identity theft and cybercrime. Such risks to the company’s security could cause significant financial loss. Companies need to incorporate a secure verification process that could reduce the occurrence of such online crimes. A report states that over 10 billion data records were breached in 2020.
Video Know Your Customer (Video KYC) is a rapidly growing verification method that protects customers and businesses from online fraud. This procedure allows companies to remotely confirm an individual’s identity using video chats from any location. It is a more user-friendly approach than the conventional KYC procedures as it doesn’t require customers to visit the location physically. This procedure verifies the customer’s identity and ensures compliance with anti-money laundering (AML) and Know Your Customer (KYC) regulations.
Video KYC Procedure
The video KYC process is convenient and straightforward and doesn’t require a complicated procedure. The four-step video KYC verification procedure is as follows:
- Sign Up on the Video KYC Platform
The video KYC process begins with the customer registering on the platform. After signing up, the customer receives a video call link from the KYC examiner to conduct additional detection.
- Liveness Detection
After successfully joining the video call, the customer’s presence is detected through liveness detection. Liveness detection can be done through facial recognition techniques, where the customer is prompted to perform several actions, such as blinking and head tilting, to ensure that the potential person is real or a counterfeit.
- Document Provision
Once the customer’s liveness is detected, they are prompted to present their government-issued documents like ID card, driver’s license, and passports against the camera during the video call. By delivering the documents in real time, customers are authorized they are real human beings.
- Verification and Onboarding
The final step compares the customer’s face to the provided documents through a face check ID to ensure authentication. After that, video KYC examiners must decide whether the customer is legitimate or deepfake.
If no spoofing or fraudulent activity is indicated, the customer is verified and onboarded successfully. However, the customer is rejected if any spoofing activity is discovered, requiring additional verification screening.
Importance of Video KYC for Businesses
The video KYC process can assist businesses in protecting their operations from unauthorized individuals. It helps smoothly onboard customers remotely while assuring compliance with regulatory standards.
- Compliance with Regulatory Standards
The video KYC provides a verification service that allows businesses to comply with the KYC and AML regulations and protects them from the harmful consequences of money laundering, terrorist financing, and regulatory fines. Companies using video KYC services regularly perform audits and assessments to ensure compliance with the regulations, which helps battle financial crimes.
- Fraud Prevention
The video KYC service verifies the customers through video calls which reduces the chances of being in contact with a counterfeit or scammer. It prevents them from commiting document forgery and identity theft. With time and technological advancements, many businesses are incorporating video KYC services to ensure that only authorized individuals access them.
- Cost Effectiveness
The automated verification advancements can make the video KYC process accurate and faster for businesses. Companies don’t need to spend hefty amounts on hardware because the video KYC process only requires less expensive video call software.
Best Practices for a Streamlined Video KYC
Businesses can implement best video KYC practices to ensure secure customer verification processes. This gives them an upper hand over competitors and mitigates the possible risk of impersonation and identity theft.
- Preparing the Customer
Before conducting the video KYC verification, the companies should effectively communicate the requirements and expectations for the procedure. Customers should be informed about the required documents and equipment to ensure that they come prepared, reducing delays in the verification process.
- Ensure Seamless Video Call Experience
Businesses should incorporate strong data protection and encryption measures to protect customer’s information from unauthorized access.
- Conducting a Smooth Verification Process
Businesses should carefully examine and verify the documents using liveness detection and facial recognition technologies to authenticate the customer’s identity.
- Regulatory Compliance and Risk Mitigation
Companies should conduct regular risk assessments and ongoing monitoring to ensure that customer’s activities are legitimate, which enhances regulatory compliance. By complying with the KYC and AML regulations, businesses can detect and combat unauthorized transactions and monitor high-risk customers.
- Ensuring Data Privacy
The customer’s private information must be protected because respecting their privacy is critical in video KYC implementation. This helps businesses build customer’s trust, enhancing the company’s reputation.
Final Thoughts
Best video KYC solution provide a more efficient, streamlined, and secure customer experience. It helps verify customers effectively from the comfort of their homes. This service protects businesses from cybercrimes, document forgery, and identity theft risks. Through video KYC solutions, customer’s private information is protected because they comply with the company’s AML and KYC regulations. It helps businesses have a smooth onboarding experience for the customers, which helps them build a strong and reliable company’s reputation while monitoring high-risk customers.
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