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KYC Compliance- Protecting Businesses From Identity Theft

In the digitized world, imposters and criminal activities are using technology to fulfill their spiteful purposes. These criminal groups tend to manipulate the system of legit businesses such as banks, insurance institutes, and various other fintech businesses in order to avail of cost-free services and to make their illegal money into white money. Fintech businesses are obliged to use KYC/AML services in order to identify and eliminate such potential risks.

Need of Identity Verification Solution

Identity verification solutions are the need of the hour. Globally the identity thief frauds are increasing exponentially. To make the businesses and their clients safe from criminal activities online KYC compliance must be adopted. The customer identity consists of sensitive information if it gets into the wrong hands can be harmful to the business as well as the customer. Thus identity verification protects the business from fraud and provides the actual picture of the clients before onboarding them. KYC AML Regulations are insightful in making the business secure and protected against cyberattackers scams.

Significance of KYC compliance

KYC plays a significant role in making fintech businesses trustworthy. Knowing your customer verification process permits the fintech business to verify customer identity before onboarding them as well as to monitor suspicious activities. The fraudsters are well aware of the vulnerabilities of the fintech business through which they make use of the system for their benefit. KYC solutions promise to detect and eliminate any kind of potential threat such as data breaches, identity thefts, money laundering, money laundering, etc. immediately. KYC AML guidelines are provided by the regulators which are mandatory for the business to implement them. Annually numerous frauds tend to happen just due to unauthorized access into the system. To reduce the number of such cases the businesses are obliged to perform KYC Due Diligence processes.

Workflow of KYC compliance

Regulators have provided KYC compliance by which the businesses are obliged to follow. Different businesses have made customer verification systems to identify the identities of the customs and to get a better image of the customers before providing them the service as per KYC laws. This also helps businesses to eliminate fraud.

Making customer verification process

Customers’ verification through government-issued ID documents
Verifying the business through business documents as well as identifying the UBOs
Monitoring and maintaining a database of potential customers

Steps to perform Client KYC Verification

Customer Provides Identity Information
Firstly the customers have to provide all the personal identification data which includes Id card number, security number, date of birth, passport number emails, and even the data regarding finance such as debit card number at the time of registration

Uploading the Identity Documents

The customers are obliged to upload the scanned copies or photos of identity documents like passport, driving license, ID card, etc. The OCR technology is used to extract the information from e-documents

Identity Verification

At this stage, the information provided at the time of registration is matched with the information obtained from the scanned copies of documents with the help of OCR. the documents are also been authenticated

Generating Results
After the verification process, the results are generated and uploaded to the client’s back office. If the results are positive the customer is verified and can be onboard

Use Case of KYC:

Customer Onboarding
The process of Onboarding legit customers is quite challenging for businesses. The traditional way of verifying customer identities leaves enough loopholes for a fraudster to exploit the system. To mitigate such loopholes, an automated way of verification is now used by the business to verify the customer and detect the potential customers which may affect the business in the future.

Account opening

The shift of banks from the traditional ways to online has made the physical distance between the business and the client. KYC Due Diligence Financial Services are provided so that the customers can open an account remotely. kyc banking is the future of the digital banking system.

Age Verification

Age verification is essential in every business that tends to provide age-oriented services. Drugs, alcohol, liquor, gaming, and multiple other businesses are obliged to do age verification under KYC compliance in order to reduce fraud and illegal activities.

Fraud prevention

With the betterment of technology, the rate of frauds is deliberately increasing. AI-based bots and hackers are getting more efficient to tackle cybersecurity measures. Thus businesses need a proper solution to overcome such fraud and make cybersecurity top-notch. KYC & Document verification services are the perfect blends of technology to cope with such situations.


Today, the health care sector is one of the best growing businesses around the globe. Digitalization in the medical sector has become most likely to be targeted by cyberattackers.

Final Thoughts

KYC Compliance is mandatory for businesses which is the best gateway to keep the business as well as their client from becoming victims of fraud. KYC verification solution is viable for all businesses in both ways identifying their customer identity as well as deters the future risk of fraud.

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