With ongoing enhancements in technology, various sectors of the world are streamlining their custom onboarding procedures. To reduce workload, increase productivity, and develop customer loyalty, online businesses are adopting state-of-the-art methods. Nevertheless, there exist certain loopholes in everything, and technology has one too.
Today, enterprises are at an increased risk of cybersecurity attacks. Criminals use these advances the wrong way for their illegitimate gains. Money laundering, terrorist funding, drug trafficking, identity theft, synthetic identity fraud, account takeovers, and data breaches have significantly expanded. Nonetheless, there is regularly a trial out and companies have a comprehensive solution for reducing criminal activities.
What Are Businesses Doing?
Since online businesses are always on the verge of potential cybercrime, they maintain certain standards to reduce illicit activities through their platforms. One of the practices to streamline business operations and prevent fraudsters from stealing customer identities is the Know Your Customer Standards (KYC). These help businesses understand their customer better through a series of checks including verification of identity information through documents, facial identity, and other relevant means. KYC not only helps businesses develop a safe and secure connection with their customers but also helps practice Anti Money Laundering (AML) obligations which are essentials to curb cybercrime.
How is Video KYC Different?
Video KYC is no different from the standard KYC process, except for the means of verification. In the video KYC procedure, customer details are submitted over a live video session with a verification expert who completes the onboarding process. The KYC agent uses important details like name, address, Social Security Number (SSN), or any other form of government-issued document which serves as proof of identity. Video verification or video KYC is just the normal KYC but in a digital form with being cost-effective, quick, and reliable. It saves customers the time and effort to come to physical offices to complete the onboarding process.
How Video KYC Works?
The process of video KYC is straightforward and easy to perceive since the customer needs to follow the instructions of the KYC expert. The steps which a typical video KYC process involves are listed below:
- The customer connects with the video KYC expert on a live video call through a video-id.
- The agent asks the user to submit their information by holding a document in front of their webcam or smartphone camera.
- The expert asks to take a screenshot of the identity proof and saves it for future verification.
- In the next step, the user is prompted to hold their camera still so that facial proof could be recorded by taking a screenshot of their face shown on the screen
- The agent prompts the user to sign on a blank piece of paper during the video session and take a photo of it. The user is also asked to write their consent like, “I want to open an account in XYZ company” to affirm their consent during onboarding
- Since now the KYC expert has all the essential details, he/she submits the information to the system which shows a matching accuracy against the facial identity and other details.
- The video KYC agent also asks about the details one by one from the user to confirm their authenticity.
- Once the procedure is complete and the customer is verified over the video, the expert submits their review, either successful or failed, with the office, and the results are shared with the client as well.
How Video KYC Helps?
Video KYC helps online businesses take down spoofing attempts, synthetic identities, and identity fraud by providing a secure means of customer onboarding. Fraudsters can no longer steal the identity of users since every detail is verified over a live video call which is almost similar to a real interaction with a person. In case of connectivity issues or possible fraudulent activity, the video KYC process is restarted until the KYC expert is satisfied with all the details. With KYC video verified users, online businesses can carry out their operations smoothly without the fear of associating ties with criminal entities and individuals.
To sum it up, video KYC helps online businesses carry out secure onboarding procedures. It also helps ensure Anti Money Laundering and that cybercrime is reduced through online platforms.