Posted by ThinSquare ON Tuesday , 10 Dec 2019 No Comments
Know your customer (KYC) regulations are important for the world’s financial system and businesses to hinder cybercrimes and money laundering to protect the business and combat terrorist activity. As scams and frauds are hitting hard on businesses there is a need to have a sound identity verification solution installed to ensure security. Fraudsters are grooming more sophisticated than before so the identity verification of customers has never been more crucial or more difficult. But digital identity authentication solution has got your business covered by mitigating the security risks associated with the businesses and performing customer due diligence in no time. Online scams like identity theft can be prevented which can cause a lot of damage to a business and its customers.
The challenges are driven by the rapid pace of regulatory change. In 2019, the regulatory authority has introduced more stringent requirements on beneficial ownership checks and ongoing customer due diligence. Businesses have been actively seeking solutions to streamline onboarding and due diligence by performing identity verification of customers. Digital ID verification which includes document verification, address authentication, age verification is becoming a way forward. Identity Verification solutions to fulfill KYC and KYB requirements are a must-have for any business.
Importance of Identity verification for Business:
KYC and AML are essential for business and organizations from every aspect, regardless of the size of business due to serious digital security concerns a business face. Fraudulent activities such as data breaches, identity theft, money laundering are on the rise and easily abusing the systems. Such scams are resulting in revenue as well as reputation loss for a business that falls in pit of such fraudulent activities.
The businesses are always on the target of fraudsters and cybercriminals. No matter what the size of the business is, verification of the customer is essential to protect the business from cybercriminals and intruders. To achieve this goal, bombarding individuals with intrusive questions is not the solution. For a secure growth of the business, security and customer experience always go side by side.
Taking into account these problems, every business wants to protect itself from fraudsters, saving them time and cost for fulfilling the orders of customers who don’t exist, henceforth preventing them from accessing the business and carrying their illicit activities. The use of digital verification services is a safer and cheaper solution in the long run with real-time verification results. The ID verification and authentication solutions are quite vigilant solutions for the businesses since they make it easy for the organizations to achieve a secure customer base while enhancing the customer experience as well.
Identity Verification- Causing Convenience for Businesses:
The online industries are readily looking forward to the implementation of the verification services to curb fraud and improve the convenience of the customers. The KYC and AML regulations are strictly imposed on the financial institutes and other industries as well. With the digitization of the industries and more private individuals entering the online marketplace have elevated organized cybercriminal activities by leaving the sector open to abuse. Due to this reason, the online industries whether e-commerce, banks, financial institutes or investment businesses, all of them need to protect their services and products from being viewed or accessed by suspicious or unauthorized individuals.
Moreover, with the increasing trend of ID theft, credit card fraud, false chargebacks claim, the organizations not just need verification at the time of onboarding, instead, the authentication of the customer every single time is as important. With biometric verification through facial recognition combined with consent verification, the digital operations of businesses will be secured and only authorized users will be allowed access. This type of user authentication can identify and prohibit intruders in real-time, securing the user accounts and their information.