
Video KYC Verification – Reimaging Customer Onboarding in 2023

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As technology is advancing so do fraudsters, ringing security alarms for financial businesses and customers alike. Selfie-based verification is no longer an option to mitigate financial crimes. Companies are shifting towards a more advanced form of identity verification — Video KYC. It is estimated that the video KYC verification market will reach $500 million by 2026, facilitating the financial sector to unblock its potential.
Video KYC verifies any customer’s identity through a video call instead of calling them in person to get the job done. The client is required to submit their official identity documents which are then verified by a KYC agent.
Traditionally businesses used to authenticate customers manually which took up to weeks, forcing clients to leave the process in the middle out of frustration. Roughly 61% of clients say that they will switch to another brand after one bad experience. This is where online video verification steps in, more secure and more economical.
Banks and other financial firms are witnessing a number of identity frauds which are as under:
Fraudsters are tricking and bypassing verification processes with stolen or fake identities to fulfil their malicious intent. It is astonishing that 23.6% of phishing scams were directed at the financial sector globally in the first quarter of 2022. On top of that, webmail and web-based software systems alone accounted for 20.5% of the spoofing attacks making the two highest-targeted sectors by scammers during the inspected quarter. This entails that more and more businesses would be duped of their money due to the illegal activities carried out through videos.
These are one of the most difficult kinds of scams to detect. The reason is that scammers smartly merge real pieces of information with fake details to get it to look authentic. Moreover, the advent of the internet has led to an increasing number of synthetic identity frauds and has just made it difficult to draw a line between conventional crime and cybercrime. What is concerning for businesses is that synthetic identity scams are estimated to cost firms $2.5 billion in the year 2022 and the number is expected to even double to roughly $5 billion by 2024.
Digital wallets and e-payments have become a target of scammers to launder money in a sophisticated way. Europol report uncovers that deep fake technology would become a key tool for white-collar crime. This is just threatening and it is high time for businesses to step up their efforts if they want to avoid deep fakes and other kinds of fraud.
Suggested Read: Increasing Incidents of Fraud Becoming a Threat to UK’s National Security: UK Finance
Video KYC is more than document and selfie verification, an all-in-one solution to curb fraud, boost customer experience, and automate businesses.
Video verification is indeed a great investment in this digital era; here is how:
Before investing in a video verification solution, it is essential to consider that it ensures:
Video verification is the key to success for all sectors that want to enhance their customer base with a secure and fast method. But the thing worth considering here is choosing the right solution that caters to the needs of your business.
Here Shufti Pro’s video KYC solution steps in, trusted globally and onboarding clients with 99% accuracy. Available in 230+ countries and territories and supporting 150+ languages, Shufti Pro’s identity verification solution promises a fraud-free world.
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