Anti-Money Laundering (AML) regulations apply to all financial institutions, including fintech companies. The purpose of AML is to prevent financial crimes, such as terrorist financing and identify fraud. Know Your Customer (KYC) is a core component of AML and is especially important for fintech organizations. KYC in fintech is more challenging than in other financial…
Email risk is a low-cost but powerful risk signal you can use in your onboarding process to help prevent fraud. In fact, when I was a junior fraud operations manager, I got to see first-hand what a huge difference this risk check can make. I was tasked with mitigating onboarding fraud for the company’s deposit…
Anti-money laundering (AML) regulations are necessary to battle crimes in the financial services industry, including terrorist financing, identity fraud and illegal drug transactions. They are the primary means used to reduce this type of unlawful activity. AML regulations encompass several subsets. Know Your Customer (KYC) is perhaps the most important of these subsets and, in…
When onboarding new customers online, there are many different risk signals you can evaluate to ensure the customer is who they say they are and that they don’t cause unnecessary risk to your business. For example, you might look at the history of the email address or phone number the customer provides to see if…
In the past decade, “digital identity” has simply referred to uploading a digital copy of your driver’s license, passport or other identification document (ID). Identity verification solutions use these digital snapshots to help businesses know and trust their customers online. But these snapshots have some flaws. First, it’s easy for fraudsters to digitally manipulate these…
Designing an effective Know Your Customer (KYC) program is a critical component of an effective anti-money laundering (AML) program. KYC requirements are meant to protect your organization from doing business with — or becoming the victim of — financial crimes and other illegal activities like terrorism financing. Without a well-designed KYC process, your organization is…
Have you ever watched the chilling cult classic “Invasion of the Body Snatchers”? The 1950s alien takeover movie is best remembered for evoking paranoia about the faceless evil lurking within society. Now, 70 years later, this invasion may be more real than reel. People who are not who they claim to be are silently and…
Financial criminals depend on advanced technology to complete many of their illegal activities, so financial institutions must use sophisticated methods to identify and stop suspicious activity. Government agencies require these anti-money laundering (AML) efforts, which include identity verification, deep background checks, and transaction monitoring. AML regulations hold financial institutions responsible for practicing due diligence. You…
Versión en español The sharing economy aims to reach an estimated market size of $355 billion by 2025, according to PWC. These figures do not come as a surprise considering the accelerated digitalization driven by COVID-19. According to the ITU, a specialized telecommunications agency within the United Nations, during the first year of the pandemic…
To beat your enemy, you have to know the enemy. Sage counsel, indeed, written some 2,500 years ago in an influential military strategy book, “The Art of War.” Yet, what do we know of today’s digital fraudster — one who stays hidden behind the cloak of anonymity? How do organizations challenge this unknown adversary hiding…