84% of scams are reported in the first month of a pandemic, and this is an alarming sign that firms must consider to secure their data. Imposters are getting advanced with the advent of advanced technology. So, there is a dire need for solutions that can hinder their growth and secure users from the negative impact of technology. That solution is KYC identity verification. After many scam incidents, firms are now moving towards online identity verification solutions through which they can protect users’ confidential and personal data.
This blog will provide a comprehensive view of KYC identity verification and also shed light on its essential aspects.
What is KYC Identity Verification?
In Know Your Customer (KYC)- identity verification solutions ensure that the customer is real and not a scammer by comparing their documents with pre-recorded databases. Restricting them imposters through KYC ID verification is essential as it helps in user onboarding and assists people working remotely. This procedure is used in different sectors, including:
- Banking
- Fintech
- Insurance
- Gaming
- Gambling
- Crypto
- Education
- Telecommunication
- Travel industry
- E-commerce
Use Cases of KYC Identity Verification in Different Industries
Due to increased cases of scamming in the digital landscape, the concept of KYC identity verification increases by securing customers from scammers. That automatically improves a firm’s productivity. Many industries are implementing digital ID verification to reduce the number of suspicious activities. Let’s closely examine how it provides its services in a few fields.
- Banking Industry
Scammers are looking for opportunities to exploit bank users, acquire their sensitive information, pose like them, and withdraw all their money or take over their accounts. Financial organizations faced 62% of spoofed details in 2019. Regulatory bodies also imposed high penalties on the top 50 banks in the same year because they weren’t complying with AML and KYC regulations. Also, the French court set a fine of $5.1 billion on Swiss banks because they were violating AML regulations. That’s where KYC identity verification steps in.
Online identity validation secures the financial industry and is a remarkable solution to combat identity-related fraud. It also prevents the penalties and hefty fines for non-compliance with AML and KYC policies. ID verification systems ensure that no one is laundering money on business premises and that they are aligned with AML regulations. By doing so, firms can ensure that all clients’ financial transactions are safe and not used by scammers.
KYc identity verification improves the client experience, efficiency, and the firm’s productivity. Online identity verification solutions secure user data and are beneficial in reducing money laundering, identity theft, and other online crimes. With ID authentication solutions, firms can verify their identity documents and authenticate the client’s database.
- Retail and E-commerce
Scammers have easy access to the retail and e-commerce industry, so they use advanced techniques to obtain clients’ essential information and exploit them. They break through security protocols, including firewalls, SSL, and DSL, to verify client identities, the biggest issue for e-commerce firms. Firms can deal with this challenge by having authentic online identity verification solutions that help in improving productivity.
Consumers usually don’t trust retailers easily. So, to engage clients, improve brand reputation, and gain their trust, retailers have to implement identity verification solutions. With these advanced solutions, retailers can reduce fraud and enhance their growth in real-time.
- Healthcare
In the healthcare industry, KYC identity verification provides endless services as it helps medical centres to verify patients on the spot. Also, it removes two of the major risks: data breach and identity theft. These challenges can put patients into severe conditions, leading to wrong diagnoses and medication mistakes.
To secure patient information and deliver more effective services, KYC identity verification solutions are best as they also decrease overhead costs. This sector can avail of the following advantages:
- Secure patient data
- Prevent medical identity theft
- Register and onboard remote patients
- Reduce wrong updates of medical records and transfers.
- Government
KYC identity verification in the government sector is the best solution to avoid conditions like the US losing more than $200 billion due to spoofing activities in March 2020. Scammers used user sensitive and personal information to claim stolen identities. These advanced systems allow government agencies to deliver digital public services, ensuring consumer data is safe and secure.
Online validation of identity reduces expenses, introduces a completely new shift in procedures, and improves services through online mediums. A flexible KYC identity verification system makes the procedure easier and more effective in every government sector, including regional councils, government, state-run schools, and local authorities.
Key Takeaways
Scammers are also improving their cheap tactics to deceive others, including firms and individuals. To reduce their activities, firms are now implementing robust KYC identity verification solutions in every sector, from government to retail and e-commerce. This solution is the gateway to entering the secure world of the Internet.
