KYC/AML compliance is becoming the headache of global businesses these days. Businesses need to identify their risks and opportunities to act in a proactive manner. For that, they need to know their stakeholders in advance before initiating any kind of business relationship with them.
KYC/AML regulations are becoming rigid towards non-complaint businesses. Global regulatory authorities are expanding the scope of their AML/KYC regulations. So it is impossible for businesses to perform due diligence on their customers before onboarding them.
Biometrics Is a Revolutionary Technology
Biometrics is a revolutionary technology that took the pace in the previous decade. It is no more a secluded technology, selfie cameras have made it a day to day thing for everyone. The ease of its use makes it quite famous among the end-users. Hence many businesses are using it for customer verification.
Biometric verification solutions for customer verification is the next big thing in compliance. Some companies like Shufti pro are already using it in their KYC/AML screening solutions. Its solution verifies the identity of a customer through their ID card in real-time. The AI-based solution collects unique facial features information from the real-time selfie-and matches it with the image on the ID-card. Also, the ID card is verified. So there is no loophole left for identity thieves. Such biometric solutions are good in identifying synthetic identities aswell.
How Facial Biometrics Help In Compliance and Fraud Prevention?
Businesses need to verify the identity of their customers to perform due diligence on them. It includes identity document screening and AML screening of the customers to make sure that it has no criminal background.
User Onboarding and KYC Screening
Facial verification is widely used for due diligence practiced at the time of user onboarding. In this case, the businesses often use outsourced KYC solutions with facial verification integrated into it.
Such solutions collect facial feature information of a person in the form of mathematical algorithms and they match them with the information in the database. The user shows his ID card along with his face and the system matches both.
Once the verification is completed the end-user is allowed on the platform otherwise declined access. So it reduces the risk of being exploited by criminals using fake or stolen identity documents.
Reduces Minor Exploitation on your Platform
Businesses offering age-restrict goods and services require to verify the identity of their customers before onboarding them. It is the regulatory and social obligation of such businesses to perform necessary verification.
Facial verification solutions also help in age verification. In case only the ID card is verified a minor might get access to restricted products and services by using the ID card of some elder. If face verification will be performing the face will match with the identity document. And any minor using a stolen ID card will be caught before any damage is done.
Biometric login for a secure account access
Once the user is onboard after verification the risk doesn’t end here. It transfers into frauds done through stolen account credentials. Biometric login makes it impossible for an imposter to login an account with a fake or stolen identity. So the business gains a risk cover against, account takeover fraud, fund transfer fraud, cash embezzlements, etc.
To wrap up, facial biometrics is the future of customer due diligence. So investing in facial verification solutions will prove to be a futuristic approach to gain retainable growth. Biometric verification is fast and easy so it like by customers. So it increases the fame of your business among the targeted customers.