Christmas is around the corner, and everyone is very excited. Moreover, people are looking to decorate Christmas trees, buy gifts for their loved ones, and enjoy the remaining holiday season with ease. However, fraudsters are also very active in fulfilling their illegal goals during these holidays. Companies in the digital world are at higher risk of cyberattacks and scams this year, especially in e-commerce or the online market. With the increase of customers on this platform, cybercrimes exponentially increased in 2022.
Considering the increase in cyberattacks, organizations must utilize class-leading KYC verification systems to fight Christmas fraud. ID fraud, gift card fraud, Business Email Compromise (BEC), etc., are increasing daily. Moreover, companies must utilize advanced security measures to deter fraud this season.
KYC Verification – An Overview
Know Your Customer (KYC) verification is essential for all corporations operating in finance, crypto, gaming, or e-commerce. As per the law, companies must verify every customer during their onboarding procedures to ensure that only authentic customers are registered. It is one way to deal with fraudsters performing illegal techniques for their criminal gains.
The digital KYC verification process verifies the customers’ documents, detects the customer’s live presence, and verifies the address. While verifying documents, companies can validate whether their customers are using forged documents for identification. Moreover, in the facial verification system, companies check for the presence of genuine customers through liveness detection, 3D mapping, and skin texture analysis. Lastly, address verification helps industries avoid returned shipments.
Advantages of KYC Verification
With AI and machine learning implementation, online platforms provide a better customer experience and results. Therefore, organizations must utilize KYC compliance solutions.
Let’s check some of the benefits of digital KYC verification during Christmas.
1-Zero Manual Work
The elimination of manual work means real-time verification services. It also reduces the chance of human error in the final output and provides accurate results.
It means that the customers can see high-quality products in real-time and are not required to visit stores physically. The services can be availed anywhere in the world without any hassle.
3-Seamless User Experience
Nowadays, users look for hassle-free products and services that provide a high-quality experience. The latest e-KYC verification solutions help online industries offer a better experience and increase their credibility.
4-Prevents Identity Theft
AML/KYC compliance is vital to fight identity theft. Moreover, it conveniently ensures compliance with international regulations.
5-Generates Real-Time Results
The latest technology quickly checks for official user authentication, like OTPs, to generate real-time transactions. It eliminates the need to use traditional approaches and allows customers to have good service quality.
Significance of Know Your Customer Verification
In identity verification services, KYC verification is a powerful solution that allows companies to provide a better experience to their consumers. The system checks the documentation and notifies the company if it finds any suspicious or criminal activity.
The organizations also use two-factor authentication to increase the security of customers’ data. In this way, the trust of their users will increase, and they can achieve their profitability targets quickly.
The utilization of the know-your-customer solution is beneficial for organizations to prevent fraud. Hence, it streamlines the clients’ onboarding process efficiently.
Apart from all other methods, companies can use biometric authentication to stop fraudulent activities. Facial spoof attacks have significantly increased over time. Moreover, fraudsters disguise communication from multiple unknown sources as a known source.
In a facial spoof attack, a fraudster attacks the face verification system disguised as a legitimate person. The main motive is to acquire the personal information of individuals to stop malware attacks. With biometric authentication, companies can quickly monitor fraudulent activities. Liveness detection ensures the end-user is present during verification and 2D or 3D face masks are placed on time.
Christmas is around the corner, and the exhilarating festival brings lots of joy in life. Moreover, after the corona pandemic, most customers have opted for online shopping, making the e-commerce industry an excellent target for fraudsters. Several reports have highlighted that criminal activities during holidays, especially Christmas, will significantly increase.
Ultimately, online companies are at stake, and there is a need for solutions that can prevent fraud. KYC verification, employee verification, Know Your Business (KYB), transaction monitoring, and employee training and development are some ways of achieving the goal. Apart from all these solutions, compliance with the regulations from FATF and other regulatory authorities is another excellent way of combating fraud.