As developments in artificial intelligence, smart technology, and machine learning turn science fiction into reality, a previously fantasy future is becoming a reality. Spammers are using fake video to verify their identity but with the video call, we can easily catch them. How will the payments sector make use of these incredible possibilities?
Artificial intelligence and machine learning have a wide range of applications, ranging from improving customer experience to assisting businesses in the fight against fraud.
However, in this, we’ll concentrate on how these technologies may assist firms in combating fraud, manage and reducing risk, and staying compliant with anti-money laundering legislation and combat transaction laundering.
So, there are so many ways for identity fraud but the best way is video KYC services. Let me explain to you why a video identification system is important.
Why is Video KYC Required?
Video KYC can be utilized to comply with regulatory identity verification standards, enhance current non-human-based solutions with human involvement, and or attain a high degree of assurance. It’s quickly gaining traction as a straightforward and quick approach to fulfilling KYC standards. Additionally, as compared to traditional and more time-consuming offline methods, there is the potential to boost consumer conversion rates.
Video KYC adheres to the requirements of the Money Laundering Act and other data protection guidelines, as well as the needs of the different regulatory bodies. Nowadays real-time video identification is essential for business and banking because fraud is increasing day by day.
Fake Videos Identification
Spammers are the ones that create fake videos. They’re designed to deceive the system and get unauthorized access. Fraudsters can, for example, bypass identification checks by deploying fakes in face verification systems. Such movies are extremely similar to actual recordings and are difficult to identify, necessitating the development of a more secure Video KYC system.
Fraudulent use of fake identities
Because of its nature, synthetic identity theft is one of the most difficult frauds to uncover. To construct a legitimate-looking identity, fraudsters blend actual bits of information, such as social security numbers (SSN), with fraudulent information. Synthetic identities are difficult to identify in the early phases of fraud, however, video verification systems can readily detect synthetic identities, averting future synthetic identity fraud.
Importance of data in video-KYC
During the KYC procedure, banks gather information such as location, employment, status, and identification. The most secure way of KYC for banks and clients would be to go to the bank and hand over the necessary documents to the person in charge of the procedure.
Not everyone, however, has the time to go to a bank and speak with a representative. The fact that the Financial Institution is located outside of their hometown is one explanation. As a result, financial institutions are on the lookout for an online KYC verification platform that would enable consumers to be onboarded without having to visit a bank. And the Video KYC procedure may fix these issues by comparing the papers and photos given by the customer to the video provided by the consumer.
Video Know-Your-Customer (KYC) Benefits
- It is really rapid, taking about 2 minutes to finish. Customers must just show their legitimate identification documents and state their name and date of birth.
- Customers from all around the world may be onboarded with Video-KYC without having to visit a bank or wait in lines, and with improved security.
- Because the data is encrypted from beginning to end, it is secure.
- The entire video KYC procedure is aided by an agent, and the only thing necessary on the customer’s end is improved connectivity.
- Because video KYC is equivalent to the whole KYC procedure, you may utilize all banking facilities.
Face-to-face KYC and video KYC both have drawbacks. For example, completing Video KYC involves robust and stable connectivity, as well as clients creating a high-resolution video so that agents do not miss face characteristics. While there are times when agents evaluate video, there are other times when software or algorithms match photographs to images in documents, which necessitates the use of highly dependable software.
While both approaches have flaws, we must remember that video has evolved as a widely accessible medium, and we may see every bank move to a video KYC procedure in the near future.
Fraudsters are continuously coming up with new ruses, and risk managers don’t always have the time to keep up. Video verification has long been predicted to aid in the prevention of fraud. Now everyone is aware of this procedure and the video verification system is increasing and all companies are applying this method to prevent fraud and give their customer Video Security Identification.
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