KYC Video Validation: A Digital Protocol for Validating Entities in 2024
Video validation for Know Your Customer (KYC) has become a game-changer in today's world. It has transformed how businesses and banks verify customer identities. KYC's use of video verification has simplified processes by using advanced technologies like facial recognition and AI algorithms. This advancement improves how customers are welcomed and boosts efforts to stop fraud. Following KYC rules helps businesses grow the global economy. However, with digital progress, there's a rise in online scams. Scammers target personal data to do illegal things such as money laundering and identity theft.
In 2022, the Federal Trade Commission (FTC) in the United States received many complaints. There were 441,822 complaints about credit card fraud, where scammers used credit cards without permission. Another 57,877 complaints were about fraud involving government documents or benefits.
What is the KYC Video Call Identification System?
KYC video validation, or Know Your Customer video validation, is a method businesses and banks use to confirm users' identities online. Customers show their official IDs, like a passport or driver's license, in a live video call. Using facial recognition tech, the service checks if the person's face matches the ID photo. This stops identity theft, fraud, and money laundering by making sure the person using the services is really themselves.
The Complete Plan of Action for KYC Video Validation
The use of video verification was recently introduced to tackle rising cases of money loss and identity theft. The KYC video identification system involves several steps, which are explained below:
Enrollment
The e-KYC video verification process begins when the user registers with a service provider. During registration, the user provides personal details like their name, address, date of birth, and contact information.
Initiating Video Session
After enrolling, the user starts a video call with the service provider on a secure platform provided by the service department. During this call, the user typically shows their official identification documents, like a passport or driver's license, to verify their identity. This step ensures that the person accessing the services is genuine and helps prevent fraud and identity theft. The secure platform also encrypts the video call to protect the user's privacy and information throughout the verification process.
Document Authentication
In a live video call, the customer is requested to show their official ID documents, such as a national ID card, passport, or driver's license. The service provider examines security features like holograms, watermarks, and other hidden elements on the documents to confirm they are genuine. This helps ensure that the person using the service is accurately identified and prevents fraud.
Facial Recognition
After authenticating the documents, a KYC video call is performed to verify the consumer's identity using facial recognition technology. In this process, the user may be prompted to perform certain actions, such as smiling or blinking, to confirm their authenticity and prevent the use of static images or pre-recorded videos.
Compliance Checks
The service provider performs compliance checks to make sure the user is not on any watchlist or involved in fraudulent activities. They do this by verifying the user's personal details against sanctions lists and databases. This helps ensure the security and legitimacy of the transactions or services being provided.
Confirmation
After verifying the user's ID and other documents through video kyc process, a notification is sent confirming their identity. This confirmation allows consumers to open a bank account, apply for loans, and use digital platforms.
KYC video identification is a comprehensive process to prevent identity theft, fraud, and money laundering by verifying consumers' identities through video calls.
Prospects of Digital KYC Identification
KYC video identification is a prime example of how digital solutions are evolving to meet the demands of a rapidly expanding environment. Financial institutions leverage this technology by integrating advanced tools such as blockchain and digital identity verification for authentication.
These technologies offer secure methods to collect and store user data, enhancing the reliability and safety of KYC processes. They enable online identity solutions like self-sovereign identity (SSI), allowing consumers to share personal credentials with financial institutions securely.
As institutions embrace these digital solutions, the KYC process becomes more efficient through ongoing client feedback. This streamlined approach improves user experience and boosts productivity in the finance sector while effectively combating fraud.
Summing Up
To ensure trustworthiness, organizations should use KYC video verification to check their clients during the onboarding process. This creates a secure environment between the industry and consumers for creating a healthy relationship. KYC video identification guarantees access to extensive services provided by the service provider.