Category: Mobile 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.

If you want to order a burger today in the streets, there’s no need to reach for your wallet. The modern world of e-commerce ensures that paying for services or any products is seamlessly done from a single tap on your phone. Conveniences brought about by online shopping is also another factor behind the growth of these digital payments.

However, it’s important to understand that e-commerce and digital money transfer have their fair share of risks. Most payment platforms leave your details and other sensitive information unprotected from third parties. Therefore, ensuring good security habits when making mobile payments is the only safety precaution to protect your financial data.

Best Cybersecurity Practices for Online Mobile Payments

Though cyberspace transactions relieve you from physical money losses, there’s still a reason to take caution with your transactions. Opting for the best cybersecurity practices is the only assurance against losing your data and financial information to fraudulent hands. Below is our compilation of the safety practices you should employ when doing your transactions

Avoid Making Payments Over a Public Network

Situation: Making online transactions has tremendous exposure to risks (which you’re already aware of). The most significant risk among them is the disclosure of your data.

Problem: A public network is a goldmine for online hackers who are always looking out for the best ways to compromise your data. Since these networks are unencrypted and unsecured, any information entered on a public network can be easily picked.

Solution: Download a VPN to encode your online activity is your only guarantee of safety when using a public network. If you don’t have VPN protection, avoid logging in to sites with your sensitive information.

Limit the Usage of Your Debit Cards

Situation: When you get used to making payments through your debit cards, much of your information is left unprotected. This gets even worse if the transaction network lacks encryption for personal data safety.

Problem: As opposed to credit cards, debit cards are usually linked to your bank accounts. This puts you at significant risk if someone manages to hack your information. The hacker may authoritatively use the information to your detriment. Therefore, losing your money becomes easy.

Solution: It’s better to use credit cards and other forms of online payments for safety. This is because credit card companies can reverse any charge when a fraudulent site or transaction is established. Alternatively, it’s safe to ensure there is proper cyber safety if you can’t avoid debit cards.

Look for Secure Shopping Sites Only

Situation: The emergency of many online shopping sites and payment platforms is furtherance of more cyber insecurity. Not all of the sites and platforms bear the same safety guarantee levels. Therefore, the probability of finding yourself transacting on an insecure platform is quite high.

Problem: Your essential information is left unprotected on such a platform. Any moment your data is entered, hackers will have their way and possibly steal valuable information.

Solution: Stay alert and learn how to identify secure sites for online transactions. Encrypted and safe sites usually have their addresses start with ‘HTTPS,’ with an ‘s’ and the end. Any site that doesn’t appear in that format is not secure for a transaction.

Be Mindful of Your Passwords

Situation: Understandably, you may want to have one password that’s uniform to all sites and it’s relatively easy to remember. Well, your data security is actually at risk if the password has been used on multiple sites for transactions.

Problem: Your passwords are the front row protectors when it comes to keeping your important data secure. Therefore, overusing them for numerous online transactions elevates the risk of being hacked. Using simple passwords is also dangerous and increases the chances of getting hacked.

Solution: Password generators come in handy in ensuring you get strong passwords that are not worth a hacker’s time to crack. Also, if you share passwords for multiple sites, take the time to change them up.

Don’t Do Transactions That Ask for Too Much Information.

Situation: There are online payment sites that will put you through a long process of information sourcing. Some may even require more information for you to complete making your orders.

Problem: Sharing too much unnecessary information on any online platform puts you at phishing risks and many more. The more information shared, the more vulnerable you become to hacking.

Solutions: Ensure you read about the site’s privacy policy before sharing any information. Also, give necessary information only. If you encounter places where sharing information is optional, kindly take advantage of not sharing and stay out of harm’s way.

Conclusion

Keeping your data and other vital information safe is the only way you can avoid cyberspace cruelty. Sticking to the best practices and seeking safe mitigation such as the above-mentioned measures will help you ramp up your cybersecurity.