The Top 10  Most Difficult Countries for Identity Verification

The Top 10  Most Difficult Countries for Identity Verification

Download Report

    n-img-roi-cross

    Before You Go, Schedule Your Free Demo Today

    Valid Invalid number


    Note: Fields marked with an asterisk(*) are mandatory.

    n-exit-img-roi-cross

    Thank you for your demo request

    We appreciate your interest and look forward to discussing how our solution can meet your needs. Expect to hear from us shortly with scheduling details.

    Close

    us

    216.73.216.113

    AML Compliance – Addressing the Threat of Money Laundering in NFT Marketplaces

    b-img-aml-comp

    The NFT marketplace is flourishing even though the top platforms do not always comply with Anti-Money Laundering (AML) regulations.

    This has paved the way for criminals to launder money while remaining anonymous through cryptocurrency.

    More than $100M worth of NFTs were stolen from July 2021 to July 2022. Just in July 2022, 4,600+ NFTs were stolen, the biggest robbery in a month.

    It’s high time for the industry players to assess the risks carefully and implement strategies to protect customers.

    A Quick Overview of NFTs 

    Non-fungible Tokens (NFTs) provide the buyer with ownership of a special digital asset. The ownership is documented on a blockchain, a decentralised ledger.

    NFTs can take the form of music, drawings, or even Tweets. They are frequently considered to be the future of art collections since buyers have exclusive rights to digital assets instead of owning actual canvases.

    What’s strange is that NFT owners cannot stop anyone from downloading or taking a snapshot of the art,  because they do not truly own the actual object.

    Even though one cannot physically possess an NFT, but can sell it to another party via blockchain. There is no yardstick to measure the true value of an NFT. Art collectors can sell and resell the digital asset at a premium price.

    In December 2021, digital artist PAK’s, The Merge, fetched a whopping $90 million. There is no certainty as to which art will take the crown for being the most traded.

    Growth in the NFT Marketplace

    The trading volume of Opensea, the world’s largest digital marketplace, is down by 99% as interest in the NFL has declined due to frauds and other misuse. However, it is still too early to predict the future of this industry. Statista claims that revenue in the NFT market is expected to reach $3.68 billion in 2023. The annual CAGR is projected at 22.91% from 2023 to 2027.

    The Weeknd made nearly $2 million by selling NFTs of his unheard music, and Coca-Cola generated $575,00 through the sales of specialised wearable goods in the virtual metaverse of Decentraland.  Gucci, Adidas, Adidas, Nike, and other well-known brands have also issued NFTs and entering the virtual world where players can buy and sell digital artwork.

    Volatility doesn’t hamper the NFT market. The international NFT space is anticipated to expand at a CAGR of 22.91% from 2023 to 2027. New players and laws will emerge five years down the road; therefore, novices to the market must start to address obvious risks and pitfalls now.

    b-info-interest

    Suggested Read: NFT Market Skyrockets to $44 Billion as Money Laundering Increases

    Money Laundering Risks in NFT Marketplaces

    AML advocacy organisations and Interpol have expressed concerns over NFTs. Since the NFT transactions are conducted the same way as cryptocurrencies, they become ideal for criminals to launder anonymously.

    Money launderers can profit from the trading of forged NFTs, like the latest Banksy print. Additionally, criminals have the capability to hack user accounts on the NFT system, sell illegal tokens, and then wash the money they make. In other cases, NFTs are utilised to transfer money between illegal parties while concealing details about security flaws.

    Suggested Read: NFTs Seek to Implement KYC/AML Standards as Money Laundering Rises

    Proactive Measures to Addressing AML Risks in NFTs

    NFT marketplace needs to be strongly regulated to reduce fraudulent attempts of money laundering.

    Several possible preventative measures include:

    Identity Verification

    A crucial part of reducing the likelihood of NFT money laundering is confirming that consumers are who they claim to be. The first step is identity verification services, which checks the legitimacy of a prospective buyer or seller by cross-checking  with the government databases and anti-money laundering watchlists.

    This forms a part of the complete LYC (Know Your Customer) verification process that ensures that customers who make transactions, do not end up dodging the system.

    Following customer verification, two-factor authentication could help safeguard accounts. Companies that manage NFT funds or support transactions may utilise other authentication methods in addition to usernames and passwords, such as biometrics, USB keys, and one-time SMS messages.

    Suggested Read: NFTs, Art Market – What Investors Need to Know About ID Verification

    KYC/AML Compliance

    Although KYC and AML standards do not currently apply to NFTs, proactive application is important to reduce money laundering and other financial crimes.

    Businesses still need to be conscious of the consumer experience in this situation. Security precautions that disproportionately lengthen the time and effort it takes to register for an account or carry out an action might cause annoyance and even result in the loss of customers. Therefore, it’s crucial for companies to use continuous risk segmentation to strike the ideal balance between fraud protection and conversion.

    Suggested Read: NFTs and Surging Crimes – How Shufti’s AML/KYC Solution Can Secure The Digital Ecosystem

    Other Cyber Security Measures

    Frequently examine the user database to identify connections between different accounts. For instance, when numerous accounts are opened with the same IP address, it could be a sign that they are being utilised for illegal operations like NFT wash trading.

    It is quite challenging to find patterns like these manually. Here, automated solutions support the evaluation procedure and make it easier to uncover fraud rings and other forms of illegal, linked accounts.

    Suggested Read: Money Laundering in the Metaverse – NFTs, DeFi, and the Role of Shufti’s AML Solutions

    Key Takeaways

    Despite the uncertainty about NFTs’ future, it can be argued that these digital assets pose a threat of money laundering.

    NFT marketplaces cannot continue operating without a proper KYC and CDD mechanism in place. Art is already one of the top preferred methods of money laundering for fraudsters. Digital art is only going to fuel this crime, until regulated.

    It is important to take proactive measures to authenticate consumers without slowing down or complicating the speed and ease of digital transactions to limit the likelihood of criminals utilising NFTs to hide financial crimes.

    Want to learn about Shufti’s AML Screening solution for NFT marketplaces? 

    Connect with an AML Expert

    Related Posts

    Blog

    Top 6 Practises For Your Business To Pinpoint Key Risk Areas

    As global industries continue to evolve and digitise, customer risk assessment has become a criti...

    Top 6 Practises For Your Business To Pinpoint Key Risk Areas Explore More

    Blog

    COVID-19 & Telehealth Fraud: Why ID Verification Is Necessary

    From being a medical coverage option to becoming a medical necessity, the telehealth industry has...

    COVID-19 & Telehealth Fraud: Why ID Verification Is Necessary Explore More

    Blog, Identity & KYC

    Why You Need To Know Your Buyer

    Online payments are fast replacing cash transactions with the top payment companies harboring 1bi...

    Why You Need To Know Your Buyer Explore More

    Blog

    Detecting & Preventing KYI Fraud | A Deep-Dive into 2023 Investment Scams

    Businesses need to bring on reliable partners and investors who can contribute to growth, provide...

    Detecting & Preventing KYI Fraud | A Deep-Dive into 2023 Investment Scams Explore More

    Blog

    AI-Powered OCR to Combat Challenges During Manual Data Processing

    Every industry has to deal with tons of customer data on a daily basis. Receiving information, ex...

    AI-Powered OCR to Combat Challenges During Manual Data Processing Explore More

    Blog

    Is NFC Really the Future? The Mystery Solved!

    We arguably live in a world that is now dependent on technology. From online payments to online e...

    Is NFC Really the Future? The Mystery Solved! Explore More

    Blog

    The Reality Behind Money Laundering through Environmental Crimes

    Environmental crimes are among the most prevailing and profiting offenses present in the world. C...

    The Reality Behind Money Laundering through Environmental Crimes Explore More

    Blog, Online Marketplace

    How the Rise of ID Verification Promises Trillions of Dollars for Online Marketplace?

    The affliction of cybercrimes and online frauds has reached such high proportions that the cost o...

    How the Rise of ID Verification Promises Trillions of Dollars for Online Marketplace? Explore More

    Blog

    HKMA’s Risk Assessment Guidelines for AML/CFT Compliance in the Banking Sector

    In the past few years, global regulatory authorities have been laying new grounds for Anti-Money ...

    HKMA’s Risk Assessment Guidelines for AML/CFT Compliance in the Banking Sector Explore More

    Blog, Identity & KYC

    User as Owner: Why KYC Software Needs to Respect Privacy Laws?

    User as Owner is a simplistic concept that stipulates that all the data of any user collected by ...

    User as Owner: Why KYC Software Needs to Respect Privacy Laws? Explore More

    Blog

    KYC/AML Compliance – An Anti-fraud Mechanism for E-wallets

    As more and more countries had to enforce lockdowns because of the pandemic, remote working and d...

    KYC/AML Compliance – An Anti-fraud Mechanism for E-wallets Explore More

    Blog

    Impact of COVID-19 on disruptive Fintech industry

    The economy and society worldwide are affected by the corona crisis. The effects of COVID-19 on b...

    Impact of COVID-19 on disruptive Fintech industry Explore More

    Blog

    Top 5 Ways to Improve Transaction Monitoring in Fintech

    Fintech is a fast-growing sector that combines finance and technology to assist businesses and cu...

    Top 5 Ways to Improve Transaction Monitoring in Fintech Explore More

    Blog

    Anti-Money Laundering Compliance for Crypto Exchanges [2021 Update]

    Anti-Money Laundering compliance solutions are gaining popularity in all corners of the world. Un...

    Anti-Money Laundering Compliance for Crypto Exchanges [2021 Update] Explore More

    Blog

    NFC Verification – Making Digital Payments Mainstream from Alternative

    With time, payment methods have evolved from coins to paper-based money, then plastic, and now sm...

    NFC Verification – Making Digital Payments Mainstream from Alternative Explore More

    Blog

    Know Your Investor | Sophisticated Investor Verification in Real-Time

    In today’s data-driven digital world, organized crime groups and fraudsters have developed more s...

    Know Your Investor |  Sophisticated Investor Verification in Real-Time Explore More

    Blog

    Basel AML Index 2021 – Evaluating the Risk of Money Laundering Worldwide

     The threat for money laundering and terror financing continue to increase with global a...

    Basel AML Index 2021 – Evaluating the Risk of Money Laundering Worldwide Explore More

    Blog

    Enhancing Workplace Safety: The Role of Employment Screening

     Recruiting new hires can often be a daunting task, as it is a time-consuming and work-i...

    Enhancing Workplace Safety: The Role of Employment Screening Explore More

    Blog

    Strategic KYC/AML Checks for the Financial Industry – Staying a Step Ahead of Fraudsters

    In recent times, the financial industry has witnessed significant technological changes which hav...

    Strategic KYC/AML Checks for the Financial Industry – Staying a Step Ahead of Fraudsters Explore More

    Blog

    How can you prepare for AML Compliance – Ultimate AML Guidelines For Starters

    Anti Money Laundering Compliance, commonly known as AML Compliance, is something that banks and f...

    How can you prepare for AML Compliance – Ultimate AML Guidelines For Starters Explore More

    Blog

    China’s New Data Security and Personal Information Protection Laws [2022 Update]

    For the purpose of identification, interdiction, and prevention, many governments, regulators, an...

    China’s New Data Security and Personal Information Protection Laws [2022 Update] Explore More

    Blog

    How biometrics in visa process reduce travel difficulties

    Biometric technology is enhancing the travel industry in many ways.  Factors that drive the secur...

    How biometrics in visa process reduce travel difficulties Explore More

    Blog

    Money Laundering Spikes High in the Gulf Region – What’s Next?

    Given the rapid increase in FinCrime, the Gulf region is now working day in and day out to impose...

    Money Laundering Spikes High in the Gulf Region – What’s Next? Explore More

    Blog

    Anti-Smurfing Solutions | Safeguard Your Business Against Money Laundering Risks

    Businesses are under constant threat of financial damage. This is primarily because cybercriminal...

    Anti-Smurfing Solutions | Safeguard Your Business Against Money Laundering Risks Explore More

    Blog

    The FATF Travel Rule: What Business Owners Must Know

    The rapidly evolving landscape of technology and cryptocurrency has made the regulation of digita...

    The FATF Travel Rule: What Business Owners Must Know Explore More

    Blog

    KYC Services For ICOs – Why you need to have them now?

    KYC services play a vital role in conducting an ICO in more than one way. They can make the entir...

    KYC Services For ICOs – Why you need to have them now? Explore More

    Anti Money Laundering, Blog, Financial Crime / AML, Reg Tech

    EU’s Sixth Anti-Money Laundering Directive (AMLD6)

    Summary: Sixth Anti-Money Laundering Directive (AMLD6) highlights a stringent framework to combat...

    EU’s Sixth Anti-Money Laundering Directive (AMLD6) Explore More

    Blog

    Shufti donates 10 million free ID verifications to help fight fraud amid COVID-19

    Coronavirus took the world into clutches forcing people to adopt isolation and businesses are com...

    Shufti donates 10 million free ID verifications to help fight fraud amid COVID-19 Explore More

    Blog, Online Marketplace

    ID Verification Ensuring Safety Deals in Real Estate Sector

    Buying and selling properties for people are major, thought-provoking decisions. It requires week...

    ID Verification Ensuring Safety Deals in Real Estate Sector Explore More

    Blog

    The Looming Threat of Deepfake Apps for the Financial Industry

    Deepfakes gained prominence back in 2017 when an anonymous Reddit user manipulated Google’s open-...

    The Looming Threat of Deepfake Apps for the Financial Industry Explore More

    Blog

    AML Screening – Combating Money Laundering in Luxury Vehicle Dealings

    Financial criminals usually look for priceless items like art, antiquities, as well as luxury veh...

    AML Screening – Combating Money Laundering in Luxury Vehicle Dealings Explore More

    Blog

    Global Trade and Prevalent Crimes – How Shufti’s AML Solution Can Help

    International trade is exchanging services, capital, and goods across borders or territories, gen...

    Global Trade and Prevalent Crimes – How Shufti’s AML Solution Can Help Explore More

    Blog

    KYC and Blockchain – The Foundation of a Secure Crypto Landscape

    Blockchain technology has demonstrated fast-paced growth throughout the world and now faces the c...

    KYC and Blockchain – The Foundation of a Secure Crypto Landscape Explore More

    Blog

    How Effective is Transaction Monitoring in Fighting Financial Crime?

    As per the United Nation’s calculations, nearly $2 trillion is laundered annually worldwide, adve...

    How Effective is Transaction Monitoring in Fighting Financial Crime? Explore More

    Blog

    How Can Businesses Detect Arbitrage Sports Betting?

    Various gamblers have investigated and exploited potential weaknesses in betting markets for mill...

    How Can Businesses Detect Arbitrage Sports Betting? Explore More

    Blog

    5 Effective Ways Shufti Combats First-party Fraud

    After analysing fraud incidents of the previous year and the current one, we observed an interest...

    5 Effective Ways Shufti Combats First-party Fraud Explore More

    Blog

    Don’t Need AML Compliance? Think Again!

    The majority of the businesses believe that they do not need to comply with AML regulations at al...

    Don’t Need AML Compliance? Think Again! Explore More

    Blog, Online Marketplace

    KYC Services and AML Compliance Services for Forex Industry

    Forex Industry stands to benefit a lot by incorporating KYC services in addition to AML Complianc...

    KYC Services and AML Compliance Services for Forex Industry Explore More

    Blog

    The Crucial Role of Ongoing Monitoring in Risk Mitigation

    The nature of a business-to-clientele relationship subjects organisations to significant risks. F...

    The Crucial Role of Ongoing Monitoring in Risk Mitigation Explore More

    Blog

    Six Ways to Protect Your Business from Christmas Scams

    Christmas is around the corner and all of you must be very excited to decorate christmas trees, e...

    Six Ways to Protect Your Business from Christmas Scams Explore More

    Blog

    The Future of Identity Verification: Shufti CEO Shahid Hanif on Adaptability, Innovation, and Technology Leadership

    As fraud threats become increasingly sophisticated and regulatory landscapes evolve, businesses m...

    The Future of Identity Verification: Shufti CEO Shahid Hanif on Adaptability, Innovation, and Technology Leadership Explore More

    Blog

    The Significance of Age Verification in the Digital Space

    With the innovation of technology, digital services among younger audiences are becoming increasi...

    The Significance of Age Verification in the Digital Space Explore More

    Blog

    First-party, Second-party and Third-party Frauds – How to Stop them?

    Most businesses don’t lose customers because of poor services but due to weak security measures. ...

    First-party, Second-party and Third-party Frauds – How to Stop them? Explore More

    Blog

    Know Your Patient | Secure Patient Onboarding and Preventing Healthcare Fraud

    Technology advancement, automation, and digitisation have paved the way for unprecedented growth ...

    Know Your Patient | Secure Patient Onboarding and Preventing Healthcare Fraud Explore More

    Blog

    Fraud Prevention – Challenges, Strategies, Best Practices, and Technologies

    The twenty-first century is by far the most revolutionary time in the history of humans in terms ...

    Fraud Prevention – Challenges, Strategies, Best Practices, and Technologies Explore More

    Blog

    Customer Identification Programme (CIP) vs Know Your Customer (KYC) | What’s the Difference?

     Often, people confuse CIP and KYC and think both are the same. Customer Identification ...

    Customer Identification Programme (CIP) vs Know Your Customer (KYC) | What’s the Difference? Explore More

    Blog

    e-IDV | Combatting Fraud in a Remote World

    Know Your Customer (KYC) is a method to identify and verify clients’ true identities and re...

    e-IDV | Combatting Fraud in a Remote World Explore More

    Blog

    6AMLD of EU – A detailed insight

    European union’s another anti-money laundering directive is in the pipeline. And this time the un...

    6AMLD of EU – A detailed insight Explore More

    Blog

    Wholesale or Retail CBDCs? Settling the Endless Debate

    The world is now moving towards digitisation at a faster pace than ever. The payment systems have...

    Wholesale or Retail CBDCs? Settling the Endless Debate Explore More

    Artificial Intelligence, Blog, Fraud Prevention

    The Role of Artificial Intelligence in the Future Of Financial Fraud Detection

    Until a few years ago Artificial Intelligence seemed like a thing from sci-fi movies. The whole c...

    The Role of Artificial Intelligence in the Future Of Financial Fraud Detection Explore More

    Blog

    AML Compliance for Money Service Businesses (MSBs) – How Shufti’s AML Screening Helps

    Money laundering has spread like a virus in today’s globalized society. Banks and other fin...

    AML Compliance for Money Service Businesses (MSBs) – How Shufti’s AML Screening Helps Explore More

    Blog

    OCR in Banking | Automating Data Extraction, Customer Onboarding, and ID Verification

    The global Banking and Financial Services Industry (BFSI) is one of the most heavily regulated an...

    OCR in Banking | Automating Data Extraction, Customer Onboarding, and ID Verification Explore More

    Blog, Business Technology

    Fintech Trends – Unlocking the Unmapped Potential

    Fintech, a blend of two words Finance and Technology, represents the collision of two worlds that...

    Fintech Trends – Unlocking the Unmapped Potential Explore More

    Blog

    NFC – Building New Grounds for Identity Verification

    Near Field Communication (NFC) is based on the famous RFID technology. In 2002, Nokia was the fir...

    NFC – Building New Grounds for Identity Verification Explore More

    Blog

    A Brief Insight into Social Media Scams – How Shufti’s IDV Solution Helps

    There is no doubt that social media has its benefits in contemporary times. With the growing tech...

    A Brief Insight into Social Media Scams – How Shufti’s IDV Solution Helps Explore More

    Blog

    Vendor due diligence – Why it’s important and how it’s done?

    In today’s ever-changing corporate landscape, businesses are always looking for ways to make thei...

    Vendor due diligence – Why it’s important and how it’s done? Explore More

    Blog

    Wholesale or Retail CBDCs? Settling the Endless Debate

    The world is now moving towards digitisation at a faster pace than ever. The payment systems have...

    Wholesale or Retail CBDCs? Settling the Endless Debate Explore More

    Blog

    Top 5 Digital Banking Trends to Look Out for in 2022

    2021 was fundamentally geared towards surviving the pandemic and its aftermaths. The pandemic-acc...

    Top 5 Digital Banking Trends to Look Out for in 2022 Explore More

    Blog

    How Shufti Identity Verification User Experience Impacts Business Outcomes

    User experience (UX) isn’t only about design or even metric-driven decision making. It’s a busine...

    How Shufti Identity Verification User Experience Impacts Business Outcomes Explore More

    Blog

    Digital Safety for Social Media, Gaming & E-Commerce Platforms

    As people and businesses are getting more and more connected online, social media continues to pl...

    Digital Safety for Social Media, Gaming & E-Commerce Platforms Explore More

    Blog

    KYC Isn’t Enough: Get Ready for the Future of Verification

    Over the past few years, companies have been looking for more sophisticated identity verification...

    KYC Isn’t Enough: Get Ready for the Future of Verification Explore More

    Blog

    COVID-19 and Travel & Tourism Industry – What Opportunities Await Post-Pandemic?

    The world is completely exhausted with the COVID-19 pandemic. The corporate sector has lost enoug...

    COVID-19 and Travel & Tourism Industry – What Opportunities Await Post-Pandemic? Explore More

    Blog

    Evolution of Digital Payments and Prevailing Crimes – How Shufti’s AML Screening Can Help

    With emerging technologies, the digital payments trend is rising, and users are executing frictio...

    Evolution of Digital Payments and Prevailing Crimes – How Shufti’s AML Screening Can Help Explore More

    Blog

    Metaverse and Meta Criminals – Is it Possible to Secure Identities with IDV?

    Ever since Mark Zuckerberg changed Facebook’s name to Meta, the acronym “metaverse” has taken ove...

    Metaverse and Meta Criminals – Is it Possible to Secure Identities with IDV? Explore More

    Blog

    How Deepfakes Deceptions are Affecting Businesses

    The word deep fake comes from the terms “deep learning” and “fake,” and is a type of artificial i...

    How Deepfakes Deceptions are Affecting Businesses Explore More

    Blog

    KYC Verification – The Significance of Identity Verification in the Telecom Industry

    Increasing smartphone usage throughout the world has accounted for large amounts of data being sh...

    KYC Verification – The Significance of Identity Verification in the Telecom Industry Explore More

    Blog

    Shufti’s ID Fraud Report: Reviewing 2022 and a Preview of 2023

    Twenty years back, “identity theft” was imagined as pictures of shady figures rifling through gar...

    Shufti’s ID Fraud Report: Reviewing 2022 and a Preview of 2023 Explore More

    Blog, Online Marketplace

    Social Media and Identity Theft Frauds

    Imagine this: You get up in the morning and like most people; check your email. There you have an...

    Social Media and Identity Theft Frauds Explore More

    Blog

    Top 7 Gambling Trends to Look Out for in 2023

    Going from a few billion dollars to over $81 bn in a matter of a decade is astronomical for any i...

    Top 7 Gambling Trends to Look Out for in 2023 Explore More

    Blog

    Shufti’s Ongoing AML Solution to Prevent Transaction Laundering

    Online financial criminals are always finding newer ways to exploit financial infrastructures in ...

    Shufti’s Ongoing AML Solution to Prevent Transaction Laundering Explore More

    Blog

    Cybersecurity vs User Experience – Knowing the Art of Balancing

    Several years of debate between cybersecurity and customer experience has driven most people craz...

    Cybersecurity vs User Experience – Knowing the Art of Balancing Explore More

    Blog

    Identity Verification – Combating Fraud in the Telecommunication Sector

    Developing technology, rapid growth in digitization, and increased use of digital transactions ha...

    Identity Verification – Combating Fraud in the Telecommunication Sector Explore More

    Take the next steps to better security.

    Contact us

    Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

    Contact us

    Request demo

    Get free access to our platform and try our products today.

    Get started