Financial institutions deploy identity verification processes and AML software when onboarding clients and authorizing transactions to comply with the Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. These identity verification solutions are also used to protect their organizations and clients from fraud and cybercriminals.
However, even with a stringent identity authentication solution in place, criminals will look for vulnerabilities in the system or use advanced technologies to infiltrate banking firms and obtain valuable information, funds, or other assets. These data breaches and fraudulent activities of criminals can damage businesses and financial firms’ reputations, resulting in reduced profits and client distrust.
Fraud remains a severe threat to the financial sector, particularly in this modern era where banking organizations allow remote onboarding of customers and clients using electronic banking when making transactions. And with the innovations in technology, cybercriminals are becoming more creative and use advanced techniques to circumvent conventional verification processes.
Financial institutions are using modern identity verification solutions, such as biometric identification, to assure their clients they can protect their highly valuable data and fund entrusted to them and deter criminals’ fraudulent activities while exercising due diligence to identity verification regulations.
Furthermore, banking companies can also use multi-factor authentication solutions to prevent unauthorized individuals from accessing their services. Using innovative solutions for identity verification and identity document authentication improves a financial organization’s reputation and strengthens customer trust. These verification solutions also allow firms to confirm that the individual they are interacting with is the legitimate account owner. This infographic from Ipsidy provides more information about identity verification and identity document authentication.