As the world moves towards digital systems, the urge to authenticate its customers through online applications has also increased. Financial institutions and digital industries working remotely require digital verification rather than manual procedures. In this urgent need for virtual validation, KYC video verification proves to be the ultimate solution for the systems.
In 2022, banks in Indonesia spent more than 1.3 million U.S. dollars to verify customers electronically. This means they used digital methods to check and confirm people’s identities. The survey also discovered that around 34.61 million new bank accounts were opened in Indonesia during that time.
What is KYC Video Verification?
KYC video verification is an advanced identity authentication method utilizing video technology to verify customers digitally. It is executed by KYC video call to display identification documents and undergo facial recognition checks. This process accelerates the customer onboarding process and also enhances security by confirming the physical presence of the individuals. Its real-time nature and smooth user experience contribute to improving brand reputation and customer trust. It is an advanced solution across different industries for meeting regulatory compliance by creating a secure verification process through a KYC video identification check.
What is the Key Distinction between Traditional and Video-based KYC Verification?
Know Your Customer (KYC) is an enduring process that is utilized across different industries, mainly financial sectors such as banking. Its main purpose is to ensure all the onboarded customers are authentic and comply with regulatory measures on business premises.
The traditional KYC involves a manual process for validating customers. Traditional KYC verification involves opening a bank account by visiting the respective bank branch and submitting identity proof documents. All these documents are verified by an authentic bank person. It’s a lengthy process that requires weeks to complete.
Prolong verifying procedures led customers to cancel the plan last time because of an emergency. KYC video-verified solutions offer customers a great experience by executing the authentication process in a minimum amount of time.
It also provides a secure gateway by preventing documents from being tampered by implementing advanced technology for validation. It is cost efficient and fast as compared to traditional video verification.
How Does KYC Video Verification Work?
KYC video verification is the process of identification that is conducted by the delegate virtually, unlike the previous times, when customers used to verify their identity by walking physically to the bank or offices to submit documents. Now, users can easily execute it through e-KYC video verification, which is a digital system for verifying the systems. All the required documents in this process will be demanded digitally for video verification. Thus, it has become an easy and fast procedure for users. Customers have to verify their identity in front of the camera by showing their personal credentials.
The customers are asked to turn on the back camera to show the PAN card so that eKYC delegates can easily capture the image and create digital copies. All the steps of the verification are done by the software that integrates the KYC video services in the financial applications of the user. The agents of KYC video identification turn on the back camera for prospective document verification. The regulations of the policy-centric features are added to the portal of the system for the highest possible authenticity.
How can Security Threats be Addressed with KYC Video Verification?
After understanding what KYC video verification is and how it works, it is necessary to comprehend the ways of identifying security threats such as identity theft and related cyber crimes. The following security threats can be overcome with KYC video verification:
Deep Fake Videos
Artificial neural networks are one of the advanced but have a negative impact as they help create deep fakes. Imposters create deep fake videos to commit financial fraud by utilizing the technology and breach security measures. By implementing artificial intelligence and machine learning technology, it would not be possible to pass deep fakes through it. KYC video verification flags deep fakes right away after detection
Spoofing Attacks
Fraudsters try to scam facial recognition systems by utilizing masks during the authentication process to hide their identity and pretending to be someone else. Earlier, it was difficult to identify spoofing attacks, but with e-KYC video verification, it is safe to prevent such spoofing attacks.
Synthetic Identity Frauds
Scammers use fake Identity numbers and incorporate them on physical identity cards to manipulate data. It is done to falsify the entire onboarding procedure and KYC. By implementing KYC video identification e.g. by demanding original PAN card the credentials would be verified and legitimacy will be promoted.
Final Verdict
As the working stations and financial institutions are transforming towards digital working, their online applications require a robust authentication system. KYC video verification is the ultimate solution to ensure secure and reliable settings in the platforms. So, it is encouraging to implement this procedure as a protective measure.
