When it comes to the online business transaction, it’s crucial for companies to research and verify their customers’ information. In today’s society, it is advisable to take the right measures to improve the authenticity of your business so it can remain a trusted entity to outsiders or any other relevant stakeholders. To do this, you need to ensure that all the business activities conducted online are verified, and the customers are legit individuals. Online verification is essential to businesses for the following reasons:
Identity and travel documents are an integral part of a business’s sensitive processes such as registration and enrollment, as well as circumstances where the certified identity is crucial, for example during bank transactions and at the border stations. To verify the identity of applicants, there are various online platforms which automatically authenticate and validate the physical and security features of the IDs. A good example of these platforms is Jumio’s Netverify. Such verification aspects, combined with the biometric identification make it possible for businesses to authenticate that the bearer of the presented documents is the rightful owner.
Know Your Customers (KYC)
This policy, also referred to as KYC, is a necessary framework for financial institutions and banks. The KYS is used for the process of identifying customers. To abide by the international regulations against the financing terrorism and money laundering, the reinforced KYC procedures should be implemented in the initial stages of business relationship establishment.
Know Your Customers begins with a simple task of identifying and verifying the customer’s identity. In the banking and financial sector, KYC involves identity verification through the verification of documents such as the national ID. Some may argue that this is still a paper-based check while others may argue that ID verification is a digital process involving the verification of identity document to ascertain its authenticity. Further, the holder of the documents in questions can be authenticated using biometric checks like fingerprint recognition or facial recognition.
The use of digital technology to verify IDs makes it possible for banks to capture the demographic data of the customers which can then be incorporated into enterprise systems such as the CRM to streamline the onboarding process of the customers, conduct a risk assessment, and undertake due diligence.
The operators of mobile phones are continuously facing an increase in cases of identity fraud during various stages of the business transactions. These can be during SIM swaps or the enrollment process. As a result of these errors, financial institutions have incurred losses due to the absence of quality online verification platforms. With the online systems of verification, it is possible to minimize cases of fraud and identify the identity of your customers. With the availability of easy to use verification service, companies can conduct their businesses without having to worry about dealing with fraudulent individuals.
Reliable verification is essential to fighting identity fraud and other criminal activities associated with the disguise of one’s true identity. Different processes and procedures such as the one mentioned above are used by both the private and public sector institutions to combat financial or identity fraud. The KYC verification option also offers internal regulation against any money laundering or terrorist financing.