Video KYC Services: The finance sector is embracing digital transformation and investing more in technological trends to facilitate remote banking. Intending to improve customers’ experience, these institutions are facing several consequences. Account takeover, identity theft, illicit flow of funds, and terrorist funding are to name a few. As of 2022, around 46% of organizations are experiencing an increase in financial fraud. Video KYC comes as a solution to it.
Financial institutions are making efforts to counter the challenges they face while making the lives of their customers easier. In order to prevent external fraud risks, integrating video KYC services is a reliable solution. This way, banks can not only accelerate the adoption of digital services but also ensure more security. This article entails ways video KYC services safeguard the finance sector.
Video Identity Verification – Countering Different Types of Spoof Attacks
With an evolving regulatory landscape, staying put with Know Your Customer (KYC) regulations has become challenging. While making digital onboarding and online transactions the new normal for customers, banks also need to upgrade their operations. In the wake of this, Video KYC solutions providers are bringing stability and upgrades to financial institutions. By incorporating advanced AI-powered IDV tools, banks can limit customer hassle while ensuring more security.
Video KYC services are revolutionizing financial institutions by offering the latest digital banking trends. This way, they can cope with present criminal threats and combat fraud risks more efficiently. Further details regarding the criminal threats that financial institutions can counter by employing video KYC services include:
Synthetic Identity Fraud
Video verification for KYC is the advanced form of IDV method which provide more accuracy to financial institutions. While criminals target digital banking operations to either conceal their illicit funds, take over accounts, or escape regulatory compliance AI-powered identification tools counter their intentions in a more efficient way.
Criminals use synthetic identity theft to trick banking due diligence systems by combining fake and legitimate but stolen information. Therefore, to come up with a competitive solution for deterring fraudsters’ intentions, financial institutions should make video KYC services a part of their onboarding process.
With the evolution of the banking system in form of digital payments and online wallets, financial institutions are facing a tremendous increase in deepfake attacks. This process refers to the human impersonation fraudsters create by using AI and ML technologies. Deepfake attacks can be in form of a picture, audio clip, expressions, or any other trait that resembles customers.
Financial institutions are coming up with advanced techniques such as video KYC services to deter deep fake attacks. With AI-powered IDV tools integrated into digital onboarding processes, banks can accurately extract voice patterns, map facial features, and detects liveness. Furthermore, video verification services enable customers to authenticate their transactions by simply using their biological traits.
Criminals often use phishing attacks to manipulate customers and obtain confidential information which they later use to access personal accounts. In this process, the fraudster impersonates banking officials and convinces clients to reveal details such as usernames, passwords, social security numbers, and others. However, with advanced video KYC services in place, financial institutions can ensure the person claiming to be someone is the actual account holder.
AI-powered video identity verification detects liveness by analyzing gestures, background, noises, objects, and other surroundings to ensure the person is present at the time of making a transaction. Furthermore, banks can enhance security while keeping customer convenience intact.
Working Mechanism of the Video KYC Procedure
Financial institutions are using video KYC services to validate customers’ identities before granting them account access. This process is a technologically advanced replacement for manual client verification methods. The Video KYC procedure involves the following steps:
Step: 1 – Registration
In the first step, users are asked to provide their PII for registration. After this, they can initiate a live video call with video KYC services experts.
Step: 2 – Liveness Detection
The KYC experts analyze the liveness of customers to ensure their presence during onboarding.
Step: 3 – Document Verification
In the third step, the KYC expert asks customers to present documents while holding them in their hands. Later on, the OCR technology extracts data and passes it on for forgery detection and information verification.
Step: 4 – Facial Recognition
In the last step, the system maps facial features by using AI-powered algorithms which are then cross-matched with documents. For improved accuracy, the systems run scans across global databases.
Video verification services are the ideal customer identification solutions for financial institutions. By using biometrics, liveness detection, and automated authentication, AI-powered IDV tools are streamlining digital baking operations. Video KYC services are emerging as the most efficient and security-driving way of performing identity verification checks. Hence, banks can ensure more accuracy, convenience, speed, and stability.