KYC for Banking: Secure Identity Verification & Fraud Prevention

10,000+

Document types

38%

ROI growth

240+

countries complied

Navigating the Complexities of Banking

Consent orders and headline fines keep increasing, regulators expect continuous, risk-based controls from day one through perpetual KYC.

Identity theft & synthetic fraud

57% of financial institutions lost over $500,000 to fraud in 2023, showing how identity theft & synthetic identity schemes erode trust and cost heavily.

Rise in mule accounts to launder money

Fraud rings exploit gaps between data sources and manual reviews, creating costly write-offs and downstream AML alerts.

Regulatory pressure & KYC/AML complexity

Over 60% of banks report rising regulatory inquiries and AML investigations in past year, pushing institutions to upgrade KYC.

Shufti offers high authentic assurance for the Banking sector

The banking sector is heavily regulated and penalized by local and international bodies. A single slip up can hence cost millions and huge reputational losses. Here is how a banking-native IDV vendor like Shufti can help.

Identity verification for lowest possible false acceptance rates

Enjoy passive-to-Active identity, tuned to banking policy. Start with 1×1 or 2×2 passive checks for CIP, then route to document, face liveness, or sovereign eIDs for SCA and high-risk flows, all under five seconds and coordinated by one API.

Document verification detects forgeries or manipulated IDs.
Biometric face match ensures the person is who they claim to be.

Transaction screening according to risk-based approach

Not all transactions are equal; Shufti evaluates risks in real time to detect anomalies in payments or account behavior that signal fraud.

Real-time risk scoring flags suspicious transactions for manual review.
Behavior profiling and device fingerprinting protect against account takeover and other frauds at signup.

Global regulator-approved AML & KYC compliance checks

Banks must satisfy rules in multiple jurisdictions; Shufti provides automation + adaptability so you can comply everywhere without separate systems.

Screening against 215+ watchlists and sanction lists , 4 levels of PEPs, and 50,000+ adverse media sources.
Updating compliance rules automatically as regulations change.

Multiple trajectories for smooth customer onboarding

Speed is essential in banking; but so is trust. Shufti ensures customers get best match verifications so they are onboarded quickly without compromising verification depth.

5 types of identity verification methods including zero-doc verification and reusable FastID method.
Mobile & web-friendly flows to reduce drop-off during signup.

End-to-end KYB with UBO transparency

Enhanced KYB verification spans 300M+ companies and 300+ sources, returns UBOs in 50+ jurisdictions, and supports ongoing monitoring so correspondent and corporate onboarding meet regulator expectations.

Periodic re-verification of identity documents & biometric checks.
Real-time alerts when suspicious behavior arises or identity info no longer matches.

Banks walk a fine line between speed and compliance. Shufti bridges the gap, delivering seamless onboarding, effortless compliance, and scalable growth.

Explore Shufti's IDV services for banks

Built for your entire team, API & no-code

For the builders: A powerful, flexible API

Integrate once to access global passive data, active eIDs, biometrics, and AML, with risk-based step-ups, signed assertions, and evidence exports, all designed for high availability.

For the strategists: The no-code Journey builder

Design jurisdiction, product, and risk-tier logic without releases, set thresholds for sanctions sensitivity, and automate re-screening schedules so policy changes deploy in minutes.

Explore Shufti’s Journey builder

How It Works

Customer initiates account or service signup

Document & biometric verification

AML/KYC screening & risk assessment

Decision & account activation

Ongoing monitoring and compliance

Even after activation, Shufti continuously monitors transactions, identity changes, and emerging threats. Re-verification triggers as needed, ensuring the bank stays compliant and fraud-exposed risks minimized.

AI/ML-driven fraud models updated with global fraud intelligence feeds.
Device fingerprinting and geolocation analysis to detect suspicious access.

When a user applies for a bank account, loan, or other service, Shufti begins the verification process, starting with identity & document capture, while keeping the UX smooth and uninterrupted.

Biometric face matching against official documents in under 30 seconds.
Multi-factor authentication (MFA) that adapts to device, location, and risk profile.

Depending on the user, identity details are added, and Shufti matches the document with a live facial scan using biometric algorithms with high accuracy, checking authenticity and expiry.

Document verification for 10,000+ ID types across 240+ countries.
Registry and license checks for corporate entities to validate existence and ownership.

Shufti cross-checks the user against global sanctions, PEP, adverse media, and criminal records, while computing a risk score that incorporates device fingerprint, geo-location, and behavior history.

Automated screening against 250+ global watchlists, sanctions, and PEPs.
Conducts adverse media monitoring to flag reputational risks early.

Depending on risk score and verification results, the bank can automatically approve low-risk customers, flag certain cases for manual review, or block suspicious ones, ensuring throughout and security.

Real-time risk scoring for transactions based on velocity, geography, and user behavior.
AI-driven anomaly detection to flag unusual patterns beyond static thresholds.

AI/ML-driven fraud models updated with global fraud intelligence feeds.
Device fingerprinting and geolocation analysis to detect suspicious access.

Completing the trust seal with Shufti

Behavioral & device fingerprinting

Catch unusual login patterns, new device usage, or location deviations to prevent account takeover, multiple account creation at signups so fraudsters don’t get the initial access.

Frictionless retail account opening

Replace document uploads with passive eIDV, verify name, DOB, SSN, and address in seconds, escalate only when risk demands it. Powered by eIDV Pro and Address Verification.

High-risk events & wire authorizations

Step up assurance for beneficiary changes and high-value transfers using bank or government eIDs, get cryptographic, signed assertions and optional liveness. Powered by Active electronic ID verification.

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The 1% that matters in fraud prevention

Most vendors boast “99% fraud prevention”, but the real danger hides in the 1% they overlook. In this whitepaper, follow the story of Jack, a seasoned fraudster who thrives in those blind spots. Discover why it’s time for companies to move beyond surface-level checks and adopt solutions that truly understand the nuance in every case.

Download the whitepaper

Frequently Asked Questions

How do you meet CIP, CDD, and periodic review requirements without heavy friction?

Passive eIDV verifies identity attributes against trusted sources, with 1×1 or 2×2 confirmation and audit-ready assertions, then escalates only when risk requires stronger proof.

Can you keep pace with OFAC updates and global sanctions changes?

Yes. Sanctions and watchlists refresh every 15 minutes across 215+ regimes and 3,500+ lists, with configurable thresholds and RCA-aware links for hidden exposure.

How do you reduce AML alert fatigue without missing true hits?

Multilingual, phonetic name matching with dynamic name and DOB weighting, plus graph RCA mapping, cuts false positives while preserving true matches, then routes alerts by severity.

Do you support cryptographic SCA for wires and beneficiary changes?

Active eIDV returns signed, time-stamped assertions from bank and government eIDs, with optional liveness for non-repudiable approvals.

How do you verify proof of address for regulated accounts?

Cross-source background validation confirms addresses without document uploads in many markets, and enhanced address verification adds geospatial distance checks when policy requires.