Tag: security

The market of fraud prevention with KYC automation (Know Your Customer) identity verification system is estimated to exceed $1 billion by the end of 2026.

Global Newswire reports that the CAGR of the industry is 22% between 2019 and 2027, which proves its high demand. The technology can significantly improve customer due diligence (CDD) and help your company reduce the number of successful fraud attempts by revealing the risks associated with particular customers. And as the value of KYC is quite clear, the challenge is to integrate and automate KYC to make it work for the company’s good while it performs the main operations in the safe zone. 

The Problem

One of the biggest problems current KYC systems have been facing over the past few years is the lack of automation in document verification, data entry, and customer onboarding. A typical case can take over a week and always irritates both customers and the employees who process the data. Besides the immense time demands, manual reviewers can’t guarantee 100% accuracy. 

The Solution

Now that you know the KYC problem, learn the latest cost-cutting solutions:

1. Image quality check AI automation – automation of this process can reduce the time needed to check whether the customer image matches a complex list of parameters. Unlike a human reviewer, AI can analyze multiple parameters simultaneously and send immediate feedback to the customer with a query to upload another image. The whole process will take minutes instead of days. 
2. Verification automation – verification of the accepted images is another potentially time-consuming challenge that requires a precise analysis of documentation. Using trained OCR models and object detection algorithms, you can reduce the time needed to find flaws in documentation to minutes and only work on reports if needed. 
3. Fraud detection automation – automated entry data verification can significantly reduce the chances of falsified information pass and achieve the right to conduct transactions. Human reviewers are, so to say, weak when it comes to the detection of digital image counterfeits, while AI can spot aspects that can’t be seen by a human eye. 
4. Document digitization automation – once all the images and documents are thoroughly checked and verified, they have to be entered into a piece of software for indexation and storing. Automated data extraction is called to reduce the time needed for the process. 

Fortunately, a large amount of automation can be done with ready-made cloud data capture automation APIs that can do all the work without the need for company-based processing facilities. Covery.ai and similar systems already provide seamless integration, compliance, and full KYC automation. 

Is It Essential?

Simplicity and reliability are what every business seeks to provide the fastest and smoothest experience to the customers. With an immense surge in the number of fraudster attacks on businesses worldwide, KYC integration appears to be one of the ways to seal the potential breaches in the security system. If a system is already on, a company’s duty is to make it as seamless as possible.

The mobile field shouldn’t be taken lightly

Mobile commerce is quickly proving that it is much more than a passing novelty. Mobile technologies like smartphones and tablets are playing a larger role in people’s daily lives. As such, they are beginning to demand services that are specifically tailored for mobile life. Retailers and other businesses are beginning to accommodate this demand, but many are running afoul of serious security issues that could have a catastrophic effect on the mobile space as a whole.

One of the most significant problems that the mobile space faces in terms of security is an overabundant lack of awareness from consumers and businesses alike. Both parties are somewhat oblivious to matters of security, especially when it comes to mobile technology and mobile-centric services. For businesses, this lack of awareness is largely due to decades spent in a world without mobile technology. Consumers are somewhat uninterested in mobile security, wanting instead for their devices and their favorite brands to handle the behind-the-scenes issues without every making their efforts visible.

Lack of awareness is a serious problem

The problem is that this lack of awareness creates a risky environment for mobile commerce. The mobile space is already very attacking to malicious groups because of its trafficking of financial information. A lack of security awareness means that these groups can, at times, move throughout the mobile space unchecked, exploiting financial information wherever they find it. This is becoming a major problem for some businesses focused on the mobile space as they are finding themselves exposed to risks that they do not fully understand how to deal with.

Many businesses are beginning to involve themselves in the mobile world. These businesses see a great deal of promise in mobile commerce and have been inspired by the major success that others have found in this field. Inspiration is not enough to ensure success for these companies, however, as many have rushed into the mobile space with poorly designed platforms and services that have been met with failure. Many of these services lack the security features necessary to be considered viable, while others simply don’t work well.

These platforms represent a significant investment from the companies that make them and their failure constitutes a serious loss. Companies looking to get into the mobile commerce game have to be careful and gauge whether their hasty entry into the market is worth the potential for failure and serious loss.