The primary product of this era of digitization is online services. Every company is using electronic channels to enhance its working and scalability. The banking sector utilizes digital channels for various purposes, such as for account opening and transactional processing. It enables the banking sector to optimize its services and explore its scalability for a vast audience. However, digital banking is also vulnerable to criminal attacks due to the use of advanced strategies for different illicit activities. They use cunning fraud techniques to commit data breaches, financial losses, and transactional theft.
Many imposters reach out to digital banks with fake IDs, which remain unidentified in the manual verification process. Therefore, legal authorities have made it compulsory for organizations to comply with Know Your Customer (KYC) regulations. However, now businesses employ advanced video KYC solutions to protect themselves from various criminal activities.
Video KYC Verification for Digital Banking Service
KYC video identification is the most precise and reliable ID verification method that organizations use to deter fraud and future complexities. In digital banking services, it is necessary to utilize ID verification checks, it enables firms to have an in-depth analysis of user profiles before account opening and onboarding process. Many individuals obtain money from illicit resources and access digital banks to launder their dirt. Hence, it makes banks victims of money laundering charges, which brings various future complications in the form of heavy fines and reputational damages. Therefore, KYC is regulatory compliance, which every state government makes necessary to comply with for the security and simplification of working operations.
FinCEN and Video KYC Verification Process
Financial Crimes Enforcement Network (FinCEN), is responsible for user examination in the KYC process. Know Your Customer service-providing firms have a direct link with FinCEN to provide enhanced user identity verification. Furthermore, the KYC procedure in the US facilitates digital process security against fraudulent users and is in line with the Bank Secrecy Act. For the purpose of improved organizational collaboration with authorized companies and legal security, digital banks must incorporate KYC regulatory compliance.
However, video identity verification is a more precise and seamless user ID verification process. It removes the hassle of manual and various processes as it is a complete set of procedures. KYC service-providing firms have controlled procedures for user identification and assist banking actors with more enhanced processes for account opening and transactional security. The aim of the video KYC solution is to protect organizations from fraudulent activities and cyber-attacks.
Different ID Verification Methods Involved in Video KYC Verification
The video KYC process is not a single step for user ID authentication, but it is a complete set of various authentication procedures. It involves a document verification process aligned with an optical recognition solution. However, it also involves the analysis of various human facial features and fingerprints for enhanced biometrics security systems. Businesses that offer KYC services have direct access to a range of public and private documents. They compare user data across different databases to ensure its legitimacy and accuracy in a few seconds through automated algorithms. An online ID authentication process is required to onboard users from all over the world. Hence, KYC is a more reliable and precise approach to having authentic users for successful business processing both nationally and internationally. KYC compliance ensures users’ legitimacy across borders for remote business processes.
KYC Video Identification for Criminal Identification
Criminals design deep fakes, spoofed images, and 3D prints to bypass securities, and they employ advanced strategic solutions for the generation of such IDs. Without robust KYC measures, it is not possible to detect such fake entities. Hence organizations are required to utilize advanced KYC verification services to have legal entities on board for secure and successful business processing. The KYC process provides the framework to onboard legal users and to have shameless work operations for development and security.
Automatic checks are responsible for authenticating user IDs and assist organizations with the most reliable and precise method of user authentication. Information obtained from various ID documents such as passports and driving licenses as compared with each other and facial data in the face recognition process. Additionally, companies compare all the information obtained in the biometric systems with mugshots to have an additional security layer. KYC uses video calls for user authentication through live detection technology.
Conclusion
Video KYC solution is more accurate and reliable for user authentication to assist digital banking services. It ensures seamless transactions across borders and enables firms to have only legal entities on board. Without KYC compliance, digital banks may fall prey to fraudster attacks. They can identify spoofed images, deep fakes, and 3D videos of criminals, which they have designed with robust strategies. Hence, KYC regulatory compliance is a complete set of procedures that involve various ID verification checks to secure banks from financial threats and network breakage.
