The financial industry has undergone a global digital revolution, which has, regrettably, drawn con artists. Criminals look for ways to take advantage of the industry for their gain. Financial technology is essential for managing finances, investing, raising capital, and managing assets.
Digital ID verification has revolutionized the finance industry in order to comply with Know Your Customer and Anti-Money Laundering regulations. The old-fashioned techniques featured a number of flaws that had serious repercussions for financial organizations. In order to stop fraud, experts employed ID validation films. It is imperative to perform video KYC checks when onboarding new clients.
Video Verification – Defending Against Spoof Attacks
Keeping up with the ever-changing regulatory landscape has made it more difficult to maintain a consistent approach to Know Your Customer (KYC) requirements. Banks must modernize their systems as clients increasingly expect digital onboarding and online transactions. As a result, video KYC solution providers are strengthening and modernizing the banking sector. Banks can reduce consumer frustration while boosting safety using IDV solutions driven by artificial intelligence.
The best video KYC solution introduces cutting-edge digital banking innovations into financial organizations. They will be better able to tackle fraud risks and deal with current criminal concerns. The video KYC solution can help financial institutions combat the following additional criminal threats:
- Synthetic Identity Fraud
Video KYC can be more accurate than IDV for financial institutions. Digital banking helps criminals launder money, hijack accounts, and circumvent laws. This is why AI-powered identification technologies are becoming more adept in foiling their plans.
Criminals utilize fake or stolen personal data to avoid bank verification with synthetic identities. Financial institutions should use video KYC in their onboarding process to deter fraudsters.
- Deepfake Attacks
Due to the rise of digital payment methods and digital wallets, financial institutions are more vulnerable to deepfake assaults. Fraudsters use artificial intelligence and machine learning to establish identities that appear to be human. A deepfake assault might be a photo, audio clip, facial expressions, or any other characteristic that looks or sounds like a real consumer.
To protect themselves against deep fake assaults, financial institutions are creating cutting-edge solutions like the video KYC solution. During user onboarding, a bank may reliably extract voice patterns, map face characteristics, and identify liveness using AI-powered IDV solutions. In addition, due to video verification services, users may use biometrics to verify their identities when doing financial transactions.
- Spoofing Attempts
Fraudsters frequently employ phishing attempts to trick victims and get private data, which they then utilize to access individual accounts. Here, the crook poses as a bank employee to trick customers into giving over sensitive information, including account numbers, PINs, and SSNs. But with the sophisticated video KYC solution, banks can verify that the customer is who they say they are.
AI-powered video identity verification can determine whether or not a person is alive by examining factors like gestures, background noise, objects, and other environmental cues. In addition, banks may improve safety without sacrificing customer service.
Working Mechanism of the Video KYC Procedure
Financial institutions check their identities with a video KYC solution to ensure their clients are who they are. This approach is a technical upgrade over traditional client verification procedures. The steps of the video KYC process are as follows:
The initial stage of registration requires users to submit personally identifiable information. Then, customers may start a live session with the video KYC solution staff.
- Liveness Detection
KYC specialists conduct a liveness analysis to verify clients’ physical presence throughout the onboarding process.
- Document Verification
Third, the KYC specialist will ask the consumer to produce their documents physically. OCR then forwards the extracted data for other processes, such as fraud detection and record authenticity checks.
- Facial Identification
Finally, the system uses AI-driven algorithms to map the user’s face traits, cross-referenced with existing records. The systems do worldwide database scans for increased precision.
Also Read Ensuring Data Security
Video verification services are the best client identification options for banks and other financial organizations. Digital baking processes are becoming more streamlined due to AI-powered IDV technologies’ use of biometrics, liveness recognition, and automatic authentication. A video KYC solution is quickly becoming the most reliable and secure method for conducting KYC procedures. Therefore, banks may guarantee precision, ease, swiftness, and steadiness.