The pandemic-hit world is experiencing major changes in how business is being conducted. According to a survey published by Statista, 29% of the identity fraud examiners reported a major spike in identity fraud incidents since the outbreak of COVID-19. Moreover, 43% of the participants predicted an uprise in identity theft for 2021.
As most of the businesses are now operating online, customers will resort to online shopping owing to its ease and the feasibility of the current situation. As a result, fraudsters will also shift to the online space. In this scenario, businesses will compete with each other to provide a smooth, efficient and secure shopping experience to their customers. For this purpose, video KYC provides a reliable solution to assist them.
The ‘What’ and ‘How’ of a Video KYC Process?
Shufti Pro Video KYC is a digital identity verification process that is used for remote customer onboarding. It identifies the customer through a video call and remote submission of government-issued identity documents. In this process, a KYC agent checks the liveness of the person on the video call. If the user tries to fool the system by wearing a 3D mask or using a hologram, then it will instantly be detected. Moreover, the video KYC process checks whether the document is authentic or not. The video KYC service trains AI and ML models to undertake this task. Furthermore, the KYC agent takes the consent of the user to record the video process. Also, the security of the video identity verification process and its recording is ensured by the service provider.
How Identity Frauds are Evolving?
As law enforcement strategies advance, fraudsters bank on the same technology to conduct crimes. Identity criminals are using artificial intelligence to manufacture counterfeit ID documents to deceive the verification systems. One example of this is facial spoof attacks which trick face recognition systems through replay and print attacks.
Moreover, synthetic identity crime is another novel identity fraud. In this fraudulent activity, criminals acquire a real piece of information on the victim’s identity. Then, based on that information, the criminal builds up a fake profile that is so authentic that it goes undetected through the identity verification systems.
Furthermore, a criminal tactic that is circulating in the identity theft field, is deep fakes. In this type of fraud, videos and pictures are fed to AI models for the fabrication of identity.
Why Conventional KYC Processes won’t be Enough Anymore?
The traditional KYC process, in the pandemic environment, is not possible anymore. The social distancing rules require a contact-free verification process for customer onboarding. Apart from the health risks the traditional verification process entails, it is unnecessarily cumbersome. Worrying about losing documents on your way to the bank and waiting for hours for the completion of the process is certainly unwanted by customers.
Moreover, even the online verification services without a KYC agent are not cutting it anymore. AI and ML-based verification systems can only do much. The accuracy of their results is at most 95 percent. With the rapid increase in online verification, neither customers nor businesses can afford to overlook the remaining 5% of the criminal advances. Thus, the video KYC process which verifies the identity of customers through the combination of technology and humans is the most secure way forward.
The Advantages of a Video KYC Process
The advantages of the video KYC process are described below:
Reduction in the cost of the customer onboarding process.
Dual check process of verifying a customer through an AI-based solution followed by an assessment by a KYC agent.
Removal of in-person submission of physical documents.
A higher number of sign-ups due to the quickness of the KYC done on a video call.
In a Nutshell
The video-based KYC process has earned a lot of good reviews, from institutions and customers alike. Financial institutions and businesses have experienced a hike in the productivity of their employees due to the speed of video KYC solutions. As the number of employees required to complete this process is reduced, organizations are experiencing financial growth. On the other hand, customers are assisted by the process to get themselves verified remotely. Thus, a human-technology hybrid is working for the benefit of both customers and organizations.