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What do NGOs have to gain from Identity Verification Services?

Ashley Williams
June 27, 2018
4 minutes read
2565

Identity Verification services are quickly becoming the cornerstone of NGO-related activities across the globe. They don’t only need to implement a highly efficient Digital KYC program for their sponsors and beneficiaries but they are also in need of implementing AML Compliance measure in order to ensure the received funds are not from dubious sources. Credibility and trustworthiness of NGOs stands to hit a great deal in case it is found connected to financially risky or straight out fake beneficiaries. After all, charity organisations and NGOs have their distinguished portfolio of finished projects to show for their efforts and years of operations. No matter what the size of operations and what kind of field an NGO is working in, identity thefts and fake IDs are a real concern. Reputation and charitable work of NGOs also stands to take a hit, in case their donors are confirmed to partake in money laundering activities or some self-interest objections are raised in longer run.

Greater Credibility from Identity Verification Services

Thousands of NGOs are involved in fundraising activities for the causes they find dear to them. They are working in every corner of the globe, truly transcending national borders in order to raise vital funds to provide relief or social outreach to people in need. It is usually not entirely uncommon practice in NGO culture that funds collected from one country are actually utilised in an entirely different region or even continent. So this first step of donor lists and funds collection puts NGOs at certain unprecedented risks. In order to write off their outstanding expenses/revenue, NGOs can be showered with large swaths of money to cover up illegal means of earning.

On the other hand, there is a case to be made for the beneficiaries and end-users on whom the relief funds of an NGO are supposed to be spent. Now, there is already a scenario to verify the identities of people who are going to receive assistance from these NGOs, monetary or otherwise. NGOs not only have to protect themselves against fake and doctored IDs but they also have to make sure that the person holding the ID is the actual owner of presented identity documents.

A fully digitized Identity Verification system will give a great boost to overall reputation of an NGO as the authorities will know that the funds have been collected by genuine sources and legitimate donors. There will be whole data set of background checks performed to ascertain the legitimacy of funds. Donating individuals and entities will also be sure of the fact that the causes pursued by a certain NGO are not only legitimate but the promised facilities/goods/assistance will be handed down to the right persons. There will be again a verified databank comprising of each person and the identification documents provided by that person for availing assistance from NGOs.

Staffing Becomes Easier As well

NGOs around the globe comprise mostly of volunteer work force, that too, for a limited period of time. It is essential to make sure that volunteers and their supervisors in the field are fully trustworthy to handle the assistance efforts or relief work to be performed on behalf of a particular NGO. Identity Verification services used by NGOs can help validate the credentials of their employees and helpers without risking any relief operations.

Shufti Pro is a perfect solution for NGOs that are looking to employ Identity Verification services to better redeem their volunteer operations, funding process and dispersal of assistance to eligible people. Shufti Pro is available globally, providing services in ALL countries and supporting ALL languages. Digital KYC services of Shufti Pro are provided with the help of an Artificial and Human Intelligence hybrid. Within 30-60 seconds, Shufti Pro can verify the credentials of every person who is trying to donate funds to an NGO, wants to volunteer or simply wants to to utilise the assistance offered by an NGO. Identity Verification Services become truly beneficial with machine learning algorithms powered by Shufti Pro.

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Disclaimer: No warranty is herein provided that the information contained in this document is accurate, up-to-date, and/or complete. In no circumstance(s), does such information constitute legal or any other advice. Any person who intends to use, rely, pass-on, or re-publish the information contained herein in any way is solely responsible for the same. We suggest to verify the information and/or obtain expert advice independently if required.

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Multi-Tier Security - Another Line of Defense Against Bank Account Scammers
Greater Credibility from Identity Verification Services
The banking sector has been witnessing a significant rise in criminal activities is a major concern of security authorities these days. The latest reports revealed that banks have been violating KYC and AML regulations and there were skyrocketing penalties in 2020. Protecting banks and customers is necessary and identity verification is one of the best ways of doing so. However, conventional methods like manual document verification do not suffice for the needs. There must be more robust and automated systems like digital identity verification and video KYC that can enhance the efficiency of the process.

A single line of defence does not work when it comes to technologically advanced fraudsters. There must be layers of security to filter them no matter how hard they try to surpass ID checks. Hence, multi-tier security is what the banking sector needs. Multiple layers of security checks and identity verification methodologies will make it impossible for fraudsters to enter banks.

What is Multi-Tier Security?

Multi-tier security refers to multiple layers of identity verification to enhance security in organisations. Fraudsters are developing sophisticated ways of fulfilling their malicious intent and a single layer of security cannot help companies. Therefore, there must be multiple layers of ID verification that can prevent fraudsters from entering the business.
A Summary of Bank Scams and Frauds

Over time, many different types of frauds and scams have struck the banking industry. Due to advanced technology, not only banks are streamlining their processes, but criminals have also figured out techniques to execute their plans. Many new breeds of scams have surprised organisations, especially banks. Let’s take a look at some of the fraudulent activities.

Account Takeover Fraud

Account takeover (ATO) refers to the fraud in which criminals get illegal access to bank accounts and use them for illicit activities like money laundering and chargebacks. As technology advances, fraudsters have also become sophisticated in committing account takeover fraud. There was a 43 per cent increase in account takeover fraud during the global lockdown in 2020. The numbers are expected to increase this year as well due to rapid digitisation.

New Account Fraud

A new breed of frauds struck the world a few years ago by the name new account fraud. With time, the rate of this fraud has increased and defeated all other kinds of scams. For a new account fraud, fraudsters use stolen, forged, or synthetic identities to open a new bank account, get a new credit/debit card, or loan money from the bank. According to Javelin Strategy, 3.2 million customers were affected by this fraud alone in 2018.

Identity Theft

Identity theft has been a threat to businesses for a very long time. The numbers are continuously increasing and banks are the primary target. Unfortunately, identity theft has taken various forms as well, including child identity theft, medical identity theft, and social identity theft. This enables criminals in making purchases, opening new bank accounts, and enjoying numerous other benefits with false names.

Data Breach

Data breach is a social engineering technique that fraudsters use to acquire customer information. The stolen data is later used for bank account scams, identity theft, and numerous other illegal activities. The identities stolen from a data breach are also used for new account fraud. Around 8,000 data breaches were reported in 2019. In the first half of 2020, 540 data breaches were reported only in the United States according to Statista.

Biometric Authentication – The Additional Security Layer

Biometric authentication is the additional layer of security that not only enhances the level of security, but it is also a rigid measure that fraudsters cannot dodge. Fooling biometrics is not a piece of cake for criminals because biometric authentication requires the live presence of the individual for identity verification. Voice, face, palm, iris, pupil, and retina are some of the biometric traits of an individual that are required for biometric verification.

Biometric verification employs various artificial intelligence models and the following techniques are used for authentication:

3D depth analysis

Micro-expression analysis

Skin texture analysis

Liveness detection

All these techniques ensure the live presence of individuals and any spoof attacks or deepfakes can be identified within seconds.

How will Multi-Tier Security Help Your Bank?

Digital identity verification is a multi-tier security measure that your bank needs. This system has multiple methods of verifying identities that prevent fraudsters from entering the business. Here is how the process of multi-tier security works:

First, the individual has to register on your bank’s website for the identity verification process

Along with the registration details, government-issued ID documents are also submitted

Then, the information submitted is verified with the government-issued ID document

Once the documents are verified, biometric authentication comes in action and face verification checks are performed

Customers have to submit their selfie or video during verification which is matched with the image on the ID document

Lastly, consent verification checks are also performed in which the customer has to submit a handwritten or typed consent note

Conclusion

All in all, verifying identities with the manual method is not an adequate option in the digital world. Digital identity verification is an automated process of verifying identities with layers of security to increase the efficacy of the process. One of the strongest layers in this method is biometric authentication that ensures the live presence of the customer for verification. Fraudsters cannot bypass these checks through any of their techniques. Due to the robustness of this technique, bank account scammers fear from the additional layers of security to verify identities and transactions. Identity theft, account takeover fraud, new account fraud, and data breaches are some of the criminal activities that have increased over time. Now, banks need a multi-tier security system to ensure the security of the customers as well as the organisation.

Get in touch with our experts and learn more about the digital ID verification system and biometric authentication.

Talk to us

What do NGOs have to gain from Identity Verification Services?

Greater Credibility from Identity Verification Services

Staffing Becomes Easier As well

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A Summary of Bank Scams and Frauds

Account Takeover Fraud

New Account Fraud

Identity Theft

Data Breach

Biometric Authentication – The Additional Security Layer

How will Multi-Tier Security Help Your Bank?

Conclusion

Let’s prove your

customer’s identity

with Shuftipro.

Let’s prove your customer’s

identity with Shuftipro.

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What do NGOs have to gain from Identity Verification Services?

Greater Credibility from Identity Verification Services

Staffing Becomes Easier As well

Recommended For You:

What is Multi-Tier Security?

A Summary of Bank Scams and Frauds

Account Takeover Fraud

New Account Fraud

Identity Theft

Data Breach

Biometric Authentication – The Additional Security Layer

How will Multi-Tier Security Help Your Bank?

Conclusion

Let’s prove your

customer’s identity

with Shuftipro.

Let’s prove your customer’s

identity with Shuftipro.