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Video KYC: A Novel Solution For An Old Problem

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Various areas of the globe are simplifying their personalized onboarding process as technology improves. Online firms are implementing cutting-edge technologies to minimize effort, boost productivity, and build consumer loyalty. Nonetheless, there are flaws in everything, and technology is no exception. Cyberattacks are becoming more common in businesses nowadays. 

Crooks abuse these advancements for their own ill-gotten profits. Money laundering, terrorist financing, trafficking, synthetic identity fraud, account takeovers or ATOs, and data leaks have all become much more prevalent. However, a review is conducted on a regular basis, sometimes through a video KYC approach, which helps businesses in decreasing illegal activity.

Current Practices of Businesses

Because internet businesses are constantly on the border of possible cybercrime, they adhere to particular criteria in order to limit criminal activity on their platforms. Know Your Customer (KYC) standards are one of the methods used to streamline corporate operations and prevent scammers from illegally obtaining customer identities. These standards aid businesses in better understanding their customers through a series of tests that include document verification, face identification, and other related methods. KYC not only assists companies in developing a safe and secure relationship with their consumers, but it also aids in the implementation of Anti Money Laundering (AML) regulations, which are critical in the fight against cybercrime.

How Online Video KYC Differs?

Except for the techniques of validation, the process of a video call for KYC verification is identical to traditional KYC. Customer information is supplied through a live video session with a validation specialist who goes through the onboarding process in the E-KYC video verification approach. Important facts such as name, address, SSN, or any other type of government-issued document that acts as ID verification are used by the KYC agent. Video verification or video KYC is the same as traditional KYC, except it is done digitally and is more cost-effective, rapid, and trustworthy. It saves clients time and effort by eliminating the need to visit a physical location to conclude the onboarding process.

Video KYC: How It Works?

Because the user must follow the KYC expert’s directions, the process of KYC verification through a video call is simple and easy to understand. The following are the processes involved in a typical video KYC process:

  • Through their smartphone or a laptop, the consumer connects with the video KYC expert in a live video call.
  • The consumer must provide their information by holding the ID paper in front of their webcam or smartphone camera, as instructed by the agent.
  • The expert requests that a photograph of the identity evidence be taken and saved for future reference.
  • The consumer is then instructed to keep their camera motionless so that facial proof may be captured via a picture of their face on the screen.
  • During the video session, the operator instructs the consumer to sign a blank piece of paper and capture a snap of it. During onboarding, the consumer is also requested to write their approval, such as “I wish to create an account with ABC corporation.”
  • Since the KYC specialist now has all of the relevant information, he or she uploads it to the system, which confirms that the information matches the face identification and other facts.
  • The video KYC representative also asks the customer for each detail one by one to verify their validity.
  • Once the procedure is completed and the consumer has been checked through video, the expert provides a review to the office, indicating whether the operation was successful or not, and the findings are also shared with the consumer.

Helps With Regulatory Compliance

Supervisory organizations such as the FATF promote effective methods to prevent money laundering, terrorist financing, and other dangers to the international financial system’s security. Its international standards apply to organizations in both member and non-member nations. Realizing this, online ID verification systems have developed their systems suited to their requirements and established their operations on a global scale so that strengthened and trustful business relationships can be created.  

Other Use Cases of Video KYC

By offering a secure form of customer onboarding, end-to-end video identity verification helps internet organizations against spoofing efforts, synthetic identities, and identity theft. Scammers can no longer steal consumers’ identities since every piece of information is confirmed during a live video conversation that is virtually identical to face-to-face contact. The video KYC procedure is repeated in the event of connectivity challenges or potentially fraudulent behavior until the KYC expert is convinced with all of the facts. 

Online companies may run their activities without worry of establishing relationships with illegal entities and persons thanks to KYC video confirmed users. To summarize, video KYC enables safe onboarding procedures for digital enterprises. It also aids in the prevention of money laundering and the reduction of cybercrime on online platforms.

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