Nowadays, scammers and fraudsters are everywhere. Every year businesses have to suffer millions of dollars of damages due to hackers and malware. As technology advances and the world moves towards a truly digital society, the threats are also increasing in quantity as well as in danger. A lot of businesses go under as they cannot withstand such an attack and do not have the resources to get back up after such an attack. If you want to protect your company, your employees, and your sensitive data from any such attacks, then you need to improve your security.
What is KYC Compliance?
Know Your Customer (KYC) is the policy of keeping an eye on your customers and making sure that they are who they say they are. You have to offer your products to the customers who are legally allowed to use it. This is vital for your continued business growth as well as keeping your business on track. You can implement the latest solutions like datazoo KYC solution to make sure that you are on the right track.
Here are some of the ways you can secure your business with identity verification:
1. Machine Learning
Many identification solutions use machine learning to create and then train an algorithm. They create a database of good and bad transactions and the algorithm takes over from there. The more data it has, the better the results it provides. You can create Machine Learning models for various cases like detecting blurriness or identifying a bad quality image.
2. Data Tagging
When you have a huge amount of data, you need to tag intelligently to make sense of it. You can tag your data based on:
- Did the image have a glare?
- Was the image blurry?
- Was the image scuffed?
- Was the ID hole punched?
- Which country was the ID from?
- Was part of the picture obscured?
The benefits of tagging your data like this help your algorithm become smarter and faster. With the help of the tagging, your algorithm will be able to find out fraudulent data automatically.
3. Data Auditing
Auditing your data will give you the verification that you need so that you won’t have to rely on your customers. Without this, you have to wait and see if they catch any incorrect verification and notify you of it. With data auditing, you can audit your transactions to ensure that your algorithm is working as it should be, flagging fraudulent IDs, and letting through your good customers quickly.
4. Liveness Detection
A lot of fraudsters are using static pictures or pre-recorded videos to take on a fake identity and steal millions from companies. That is a common problem with smartphones as they can be duped with a static image as proof of identity. With liveness detection, you can thwart the fraudsters and their attempts to steal your cash or your important and confidential information.
5. Geographic Coverage
This depends on whether you are running a local service or a global one. But whichever it is, you need to provide support for your customer’s countries, languages, and different types of IDs. Instead of just supporting driver’s licenses and passports, you can also create a solution for other types of documents that you can ask for.
6. ID Version Support
Another feature of identity verification that you can use is to include support for different versions of IDs for your customers. For example, suppose that a state has changed its driver’s license and now it looks different. You need to make sure that your system can detect the change so that someone doesn’t use the previous ID to get into your system. Depending on the country and the state there may be different versions of IDs coming into your system. Some might have been issued in the current year and some might have been issued ten years ago and are still valid.
7. Expired IDs
Many DMVs and passport offices punch a hole when a passport or a driver’s license expires. When you go to renew your ID, the previous one is punched so that everyone who sees it knows that it has expired. You need to implement an identity verification solution that can detect the punch hole and act accordingly.
8. KYC, AML and BSA Compliance
With the latest solutions at your disposal, you can go beyond just government-issued ID verification and confirm your customer’s presence in real-time. Ask your customers to take a selfie with their smartphone and that selfie will be compared to the picture that you have in your database in real-time. With an elegant solution like this, you can comply with Know Your Customer (KYC), Anti-Money Laundering (AML) and Bank Secrecy Act (BSA). You can provide your customers with safety, security, and convenience.
9. Human Review
No matter how good your machine learning algorithm is, sometimes humans can see patterns that your algorithm can’t. Get a human team to review your algorithm and the process of verification. Consider global IDs, unique sets of security features, huge amounts of data, and other characteristics of verification.
10. Trend Spotting
With a human team at the helm and your algorithm working in the background, you can easily train them to spot trends so that not only does the verification process becomes stronger, but also your algorithm will learn quicker. This process will become more and more automated over time. The more trends you spot, the more transactions you can catch and the nimbler your solutions will become.
11. Omni-channel Support
A lot of Identity Verification solutions still support only smartphone images and don’t have the support for other channels like desktop webcams and others. That means that there’s a large number of your target audience who cannot access you and your products or services. By being Omnichannel, you can support different models of verification and cast a wider net.
12. Blur & Glare Detection
Today’s smartphone cameras are crisp and capture high-resolution photographs, but the same cannot be said for older phones and webcams. If you integrate webcam and old camera photos verification into your system you can alert your customers when their picture is blurry or it has a lot of glare which hurts the verification process.
13. Barcode & MRZ Scanning
Most identity solutions providers can read the barcode that is present on the back of the driver’s license and they can also detect the machine-readable zones (MRZ) on different types of passports. But what if the barcode or the MRZ is damaged or unreadable? You need a solution that can check the data taken from the barcode and the MRZ and check it against the information written on the front of the driver’s license and the passport to ensure that the person is who they say they are.
14. Black & White Detection
One of the things that can really help you in your verification process is to find out whether the picture you are seeing is in color or black and white. All legitimate IDs are issued in color so it is important to detect whether the picture you are receiving is in color or whether it has been doctored.
As technology advances, so do the fraudsters and scammers. To give your customers true peace of mind and increase their faith and trust in you, you need to implement the latest security measures including biometric identification. Once you have the latest identity verification protocols in place, your customers’ trust in your company will increase and so will your sales.