KYC Verification – Efficient Solution For Diluting Identity Scams

COVID 19 pandemic has brought a redefining turn for the business and financial organizations. They have to shift their services online to provide a better user experience to their clients and prevent identity thefts. The banking sector is taking advantage of digital KYC video verification solutions for remote customer verification and onboarding. Video KYC plays an essential role in the secure and seamless onboarding of customers. It helps organizations dealing with money to comply with KYC regulations and eliminates identity thefts.

What is kyc video verification?

KYC video authentication is a process by which organizations verify the customers’ identity through a live video call with the assistance of a KYC expert. During the live video chat with the KYC agent, the customer is required to submit his ID documents online as proof of his identity.

Video KYC verification Vs Manual KYC

Kyc compliance is defined as the necessary measure to validate the customers’ identity and analyze the potential risk associated with the clients. Financial regulatory authorities have designed stringent laws regarding KYC to prevent scams. Therefore, all financial organizations must perform proper due diligence and KYC procedures to verify their customer identity. Frequently, financial organizations implement Manual Customer Identification Program (CIP) measures to authenticate the customers’ identity during the onboarding process. This procedure takes a lot of time including weeks, which can force the customers to leave the verification process in the middle.

On the other end, video-based KYC verification is an advanced version of manual KYC measures, more secure, cost-efficient, and swift. It reduces the hefty paperwork required for customer registration and enhances the overall verification process by delivering results in real-time. Customers can verify themselves while sitting back at home and opening their accounts. They don’t need to physically visit the financial institutes and submit their ID documents for verification. The registration, as well as onboarding, can be done remotely.

Why is KYC Video Verification Important?

Video verification has become a trending technology nowadays. Modern ID authentication measures have made the verification process more speedy and cost-effective. The rapidly increasing threat of identity fraud has made it necessary for businesses to adopt secure verification mechanisms such as video verification. Safety and security are major concerns for every sector in this digital age and KYC video verification is the effective solution for detecting sophisticated tricks of fraudsters.

Video KYC verification provides a viable defense against multiple types of frauds discussed below:

Spoofing Attacks

With technological transformation, cyberattackers are becoming more knowledgeable for executing frauds to accomplish their malevolent intent through spoof attacks. Using artificial intelligence-based systems, impersonators are bypassing the verification measures by using fraudulent and false identities. These types of counterfeit documents and facial spoofing attacks are quite difficult to be detected by the systems. Video KYC solution employs both human and artificial intelligence to identify facial spoofing attacks in real-time.

Synthetic Identity

A synthetic identity scam is another type of fraud that is quite hard to detect. In this type, the fraudster merges the composition of genuine/real information with fake information to produce a real-looking ID. It is difficult to track these frauds at an earlier stage but with the help of a video kyc solution, synthetic ID frauds can be easily identified. Therefore, it prevents the possible occurrence of synthetic ID scams.

Deep Fakes Attacks

Is the synthetic media that consists of fake videos that are made using deep learning technology. They are used to trick the system and gain illegal access to exploit the system. For example, criminals can use deepfakes in facial verification mechanisms to bypass ID checks. Deepfake videos are quite similar to real videos and cannot be detected efficiently. Hence, it drives the need for integrating more robust KYC video-based solutions.

Working Of Video KYC Solutions

Video KYC procedures require customers to verify their identities by providing a valid ID document as proof of identity during the online video call. It incorporates facial recognition and document verification methods to authenticate clients’ identities during the video call.

  1. The customer registers himself on the portal
  2. The KYC expert connects with the customer through live video calls
  3. Afterward, the customer answers the question asked by the KYC expert and at the same time liveness detection is performed
  4. The customer displays his ID documents to the camera
  5. The documents are checked against forgery and modification
  6. The face of the customer is matched with the picture on his ID documents.
  7. After a successful match, the verification results are displayed to the customer.