What is Digital KYC verification? Which industries need an eKYC solution?

Technology was created to make people’s lives easier, but scammers are taking advantage of it. Digital KYC is important to combat common problems with online transactions like Money laundering, terrorist financing, human trafficking, identity theft, synthetic identity fraud, account takeover fraud, and data breaches. Fraudsters exist in every business. Everything has been digitized in the virtual world we now live in, and powerful digital identity verification solutions are assisting industries in combating crimes and preventing fraudsters from tampering with customers’ information.

Industries that Benefit from Digital KYC Verification

In reality, due to the advanced methods used by fraudsters for their destructive actions, none of the sectors are safe these days. Every industry in the world needs digital identity verification checks, but these are the industries that require it the most. Because these places are the prime targets of all criminal activity, their protection is critical.

Age Verification for the Online Gaming Sector using Digital KYC

Younger gamers, pre-teens, and teens, make up a large portion of the gaming market. This group is particularly vulnerable to social engineering attacks due to their relative lack of cybersecurity understanding and increased exposure to social media. Fraudsters can employ a variety of tactics to defraud players. They can try to deceive gamers by posing as a friend or a game administrator and requesting access to personal data. Fraudsters will post links to phishing sites in the hopes of harvesting player credentials, deceiving the user into entering their information, and then utilizing it against them. Digital KYC verification can be added to online gaming platforms to keep criminals out and ensure that only authentic players are part of the community.

Online Gambling

Digital identity verification checks are also required in the gambling industry to guarantee that all clients or players are genuine. Money laundering is the primary motivation for scammers that enter this industry. In an environment where everyone is rolling money without verification, it becomes easier to place unlawfully gained money. The gambling business can use digital verification techniques to keep money launderers away from legitimate gamers.

Finance

According to UNODC and Europol reports, two to five percent of global GDP is laundered each year. Banks, insurance firms, and other financial institutions can use digital KYC verification technologies to streamline the onboarding process, prevent fraud and money laundering. Crowdfunding and virtual payment platforms are working hard to make the consumer experience as simple as possible. However, criminal activity has made it a major issue. Furthermore, increased customer demands pose a greater challenge.

Travel

Fake travel agencies, fabricated identities used to emigrate, and a variety of other activities make it difficult for the travel industry to adhere to KYC standards. Scams in the travel business may soon cost more than USD 25 billion. Face verification and other forms of identity verification can assist the travel sector in adhering to the rules. Furthermore, these thorough examinations will aid them in stopping scammers from escaping.

Why do these Industries Need Digital KYC and Identity Verification?

Minor protection is essential, and basic age verification via the date of birth will not keep them from visiting adult websites. To mention a few risk areas, there are alcohol, gaming, gambling, and cryptocurrency exchanges. Minors are also at risk from social media networks. All of these areas can use robust identity verification procedures to prevent young people from faking their age to bypass age verification checks.

In today’s highly regulated digital businesses a frictionless, and secure identity verification has become a mandate. The traditional onboarding process for new clients can be time-consuming, error prone, labor-intensive, manual process involving multiple departments within the institution. This can lead to frustrating delays for customers and can put a strain on the business relationship.

The good news is that AI, facial recognition, liveness detection, process automation, and machine learning technologies are addressing the verification challenges of today’s connected, global business arena. Advanced identity verification not only benefits the customer but also the business in more ways than one. Read our blog “Why is Identity Verification Necessary” to know why making an investment in digital onboarding is a lucrative decision and how it can benefit one’s organization:

1) Seamless Digital Onboarding Experience

2) To Expand Customer Base

3) Improved Conversion Rates

4) Assured Regulatory Compliance

Try IDcentral’s Digital KYC verification solution.

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