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A Successful KYC Compliance With Online ID Authentication Solution

Due to the use of sophisticated forgery techniques in falsified documents, it is highly difficult to identify the criminals on board. After the COVID pandemic, many companies have moved toward online systems and remote working at national and international levels. Many companies have suffered from identity theft and financial terrorism due to a lack of efficient identity document verification techniques. Businesses must comply with the ‘Know Your Customer’ measure to have authentic clients on board and fraud prevention. Electronic identity verification is the only solution that can provide companies with KYC measures. It enables firms to access their clients’ risk profiles to avoid upcoming complexities. This blog post will explore how electronic identity verification solutions enable industries to have successful KYC compliance and make them secure and proactive. 

Why Do Businesses Need KYC Compliance and ID Authentication?

KYC enables companies to know the customer’s profiles, and it provides multi-level security that begins with document verification and processing along with biometric recognition. Many financial organizations have suffered reputational damage and heavy fines for being suspected of being involved in illegal acts. KYC compliance allows access to the client’s financial history and investment objectives, thus preventing money laundering and illegal transactions. It protects companies from the risk of fraud and money laundering (ML). It mitigates the risk of bribery and corruption and allows authentic clients to be onboard. KYC  allows the identification of a customer’s originality. The electronic identity verification solution is required to have cross-edge KYC compliance, which only allows authentic clients to reach. 

How Does the EIDV Lead Businesses To Have Successful KYC Compliance?

Electronic ID verification utilizes ML and AI-pretrained models that process verification methods with automated algorithms. It identifies customer’s identity and enables companies to have authentic clients onboard. The EIDV process involves the following steps to identify a customer’s identity. 

  • Data Collection

Customers are asked to provide certain legal documents, such as identity cards and passports in digital form. These documents are processed to identify their authenticity. Pretrained AI algorithms identify the legitimacy of documents. These algorithms are sharp enough that they can detect the minor variations that make a difference between real and fake papers. These variations cannot be identified with the human eye. 

  • Real-Time Verification

After the submission of particular digital images of government ID cards and passports, individuals are asked to make them available for real-time verification. The facial image or selfie is captured to analyze the facial nodes. Various algorithms are executed to process facial data and bring it in digital form.

  • Cross Match 

Finally, the face print identified during image or selfie recognition is matched with the already provided image on the ID card or passport. It identifies the person’s identity and stores the digital information in an electronic database. Individuals with fake IDs are recognized and reported. Digital database cross-matches enable the company to access criminal records of any risk profile and protect the company from future risks. 

Which Industries Can Utilize The Advanced EIDV Services For KYC?

KYC is the requirement of every business to protect it from fraud and reputation loss. Many clients provide fake pictures and ID documents to perform illicit activities. There is a need for robust techniques to identify unauthentic consumers. The following industries must comply with electronic identity check utilization to have successful KYC measures; 

Criminals access banks to perform their illegal activities, such as money laundering and illegal transactions. Many people use bank accounts to save and transfer black money as it is obtained from legal means, which becomes problematic for banks and other financial institutions. Thus, banks must use an electronic identification process to achieve successful KYC compliance. It discourages criminals from accessing fake bank accounts or using illegal documents to deceive financial sectors.

Businesses that use online platforms for their processing and dealing are required to use electronic ID verification services, which enables them to have ‘Know Your Customer’ compliance. Many individuals use fake accounts and non-trusted IP addresses while having remote business relationships. Many criminals provide forged documents, thus EIDV is mandatory to unveil every kind of fraud risk. Successful ‘Know Your Customer’ compliance makes remote working secure for organizations. 

Final Words

Companies must use electronic identity verification solutions to utilize KYC compliance. This enables them to have real customers to deal with and protect them from being victims of financial terrorism and fraud by imposters. EIDV utilized advanced digital solutions and made companies competent in eradicating the risks of fraud, money laundering, and corruption. Banks and online businesses must use electronic verification to reach their customers’ identities as it enables them to unveil the fraudsters. Digital AI and ML-based solutions are highly efficient and smart in identifying the legitimacy of the information provided by the clients. 

 

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