Achieve KYC Compliance
with Online Identity Verification
What is KYC?
Know Your Customer (KYC) refers to the process of verifying the identity of your customers, either before or during the time that they start doing business with you. The term “KYC” also references the regulated bank customer identity verification practices to assess and monitor customer risk. The KYC process is also a legal requirement intended as an anti-money laundering (AML) measure.
Who is Impacted?
Regulations are becoming increasingly strict for financial institutions to better verify customer identities during the opening and maintaining of accounts. KYC policies require “reasonable due diligence” to know (and retain) the essential facts concerning every customer. Whether you are technically subject to KYC regulations or not, companies of all sizes are embracing KYC procedures to protect themselves and their customers.
KYC Compliance and Your Customer Identity Program
How do you know someone is who they say they are? How do you answer this question when your customers aren’t sitting face to face across the desk from you?
Did you know...
- In 2017, there were 16.7 million victims of identity fraud, a record high that followed a previous record the year before, according to 2018 Identity Fraud: Fraud Enters a New Era of Complexity from Javelin Strategy & Research.
- Criminals are engaging in complex identity fraud schemes that are leaving record numbers of victims in their wake. The amount stolen hit $16.8 billion in 2017 as 30% of U.S. consumers were notified of a data breach, an increase of 12 percent from 2016.
- This is not just a U.S. phenomenon. Identity fraud in the UK hit a record high of 174,523 incidents last year—and the vast majority of it happened online.
- Separate research (Source: Top10VPN.com, March 2018 ) found that fraudsters operating on the dark web could buy a person’s entire identity for just £820.
For financial services companies in particular, KYC compliance has a huge impact on how they enable customers to open accounts and perform financial transactions on their preferred device. Customers want to bank online but banks must contend with AML and KYC requirements while also fighting fraud, financial crimes, and mitigating high-risk transactions.
To help meet your KYC obligations, you need an identity verification solution that can deliver both convenience to your customers and protection for your business. To do so, look for mobile and web-enabled solutions that leverage on-device technology, biometric authentication (such as facial recognition with liveness detection), compliant machine learning, and identity experts to achieve accurate identity results within a seamless digital environment your customers want.