KYC Documentation – A Powerful Technique Against Identity Theft

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A Powerful Technique Against Identity Theft
Lettering KYC with abstract persona on keyboard.

In the age of digitization, every business sector must implement client identity verification services. This step is very important in order to manage risks in digital platforms. It is also according to global regulations. Nonetheless, the application of these regulations is a tough job and there can be several factors that can hinder the implementation e.g. the lack of resources. The use of KYC documentation is an appropriate solution for the above issues. It can help companies in tackling identity theft, money laundering as well as terrorism financing cases across the globe. Of course, the use of advanced technology enables companies to show compliance with international regulations. 

KYC Documentation: The Application of KYC Verification Service

Identity theft which is also known as false personation is an offense. It means that an individual has assumed the fake identity of another person because they want benefits linked with that identity. For instance, health insurance benefits. Cybercriminals can use multiple strategies to obtain a genuine identity from the other person. For example, they can threaten and exploit the individual mentally and emotionally to gain financial benefits. They can use their social media accounts and spread controversial messages to turn their family and friends against them. With the passage of time, the individual will start following the unrealistic expectations of the hacker. The hacker will keep using the identity until they have fulfilled their mission. According to the Identity Theft Deterrence Act, it is forbidden to use someone else’s identity for personal gains without the permission of the legal authority. If the criminal uses the identity for illicit activities, the matter will be dealt with according to the law. As per the USA’s Department of Justice, the criminal gets penalized for above ten years. The authorities also confiscate anything that the criminal used for fulfilling their objectives. The targets of identity theft usually face a lot of financial loss due to the activity. It rises to about billions of dollars. 

How Much is KYC Documentation Effective against Digital Fraud?

Due to the rise in financial crimes all over the world, experts were puzzled about how to solve these issues. They formed global regulatory authorities such as FATF and FINTRAC. These global regulatory bodies introduced KYC/AML guidelines and demanded that all businesses all over the world implement these regulations in their business setups. The implementation of these advanced digital solutions will help businesses to discourage the fraud attempts of cybercriminals. The KYC documentation service is fast and reliable. Some companies perform the KYC procedure through private sessions while others can do it through online means. The use of artificial intelligence has made matters easier for companies because it enables remote access of the KYC documentation service to remotely present clients. Additionally, users can use any of their electronic devices for identity verification. The KYC experts will be able to determine the identity of the client with higher accuracy. 

The Integration of AI & ML with KYC Documentation Service

The advanced versions of the KYC verification procedure get integrated with artificial intelligence that allows the end-users to use the service on websites and mobile applications of the company. The summary of the KYC documentation procedure is as follows: 

  • The end-users must register themselves on the digital platform. They must provide a selfie in real-time
  • The AI-backed software captures information using OCR technology. The data gets processed quickly along with proper organization in the database. The procedure takes a few seconds to complete because of artificial neural networks. They allow the software to process huge volumes of information within a few seconds
  • Customers should know that the KYC documentation service only works with official government-generated documents such as passports, driving licenses, and utility bills

In the following, there are some manipulations that fraudsters can use to sabotage the security protocols of the organizations. 

  • Illicit records are the type of documents that do not have special features present in original records by the local governments. It means that they do not have holograms, special ink, or paper. Even the human eye can catch these differences so there is no big issue
  • Stolen/ false documents are the type of records that fraudsters steal from a genuine identity
  • Cybercriminals also use modified documents in order to fool the KYC documentation service. These types of documents contain mixed information

Final Remarks

Finally, the application of KYC documentation software allows companies to safeguard their databases from fake documentation. The online document validation software is highly accurate. It is more sophisticated and frictionless than manual document authentication programs. The integration of artificial intelligence and complex machine learning enables the end-users to get their identities and documents verified from the comfort of their workplace. It only takes a few seconds for the user to see results in the case of genuine documents. As the KYC documentation service is available worldwide, the software can validate documents in multiple languages with high accuracy.