Identity Verification making online dating platforms secure

Identity Verification making online dating platforms secure

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The expansion of the internet and mobile devices has led to the rapid adoption of online dating. According to a survey, at least 15 percent of American adults have used online dating sites or mobile dating applications. When it comes to digital frauds, consumers mostly think of identity theft, credit card fraud, account takeover, and other fraudulent bank transactions. But not anymore.

Like technology, cybercrime is continuously evolving now targeting online dating sites and applications. Dating scam isn’t a new concept, in fact, the term “catfishing” has become a streamline after the 2010 documentary “Catfish.” The term Catfish is quite prevalent; in this context, catfish means creating a false identity online to deceive people in online romance.

In today’s dating, many daters in search of special partner find themselves being ‘catfished’. A study in Psychology Today (2016) reported that at least half of the dating site users have lied about themselves in their profiles. As Valentine’s day is approaching, people may go online to search for love, but they can fall into the trap of deceptive scammers.

Driving factors behind dating scams 

The romance scams are emerging as a new type of fraud to exploit the people and there are multiple core drivers. The recent incidents of data breaches have given fraudsters additional access to personally identifiable information (PII) to use in online dating scams. This information is being used by scammers on dating platforms to pose as someone else and tract daters.

Another factor fueling the growth of dating scams is the lack of digital verification process while creating the profiles on dating sites and apps. There is no proper mechanism to ensure that the account matches the physical identity and even if its matched for the time being then is it being operated by the same authorized entity or not. What most websites do is verify the profiles through other social apps such as Facebook and even google. And it’s not difficult to create a fake Facebook profile or Gmail ID. 

Customer experience matters a lot and user expectations of seamless onboarding experience are higher than ever; hence tieing up the hands of companies. Nevertheless, businesses need to implement efficient measures that can balance between security and convenience; hence curbing online dating scams and frauds. 

The sky-high cost of dating scams

Catfishing isn’t only resulting in a broken heart and bruised ego, but also leads to million-dollar losses for the victims. Romance scams and other similar scams cost consumers more loss than any other internet fraud. In 2016, the FBI reported that consumers lost more than $230 million and businesses can expect it to be much higher.

Through these sophisticated scams, the fraudsters are running a well-thought business; for instance, in Canada. According to a report of 2015, there were 990 reported cases of romance scams that resulted in a total loss of $16.9 million, targeting 672 victims. 

According to the Federal Trade Commission (FTC), the median reported loss from romance scam in 2018 was $2,600 which is seven times higher than any other internet fraud. The data showed that these scams cost online daters $143 million

Victims as money mules

Romance scams are considered organized crimes because of their nature. Money isn’t the only thing that is being a cost to victims; there have been many fraud cases where the victims have become offenders unknowingly landing into jails. It is found that in dating scams money launderers have been involved looking out for the opportunity to launder money without getting suspicious. 

Online dating sites are full of people finding their soulmates and special someone and the imposters take advantage of them by pretending to be sweet and caring. In such scenarios, the scammers play with the emotions and gain the full trust of the victims before taking any action. Multiple cases have been reported in which the victims are being used as money and drug mules which landed them in jail.

In 2016, the romance scam victim Edwena Doore landed in jail for five months for unknowingly laundering $700,000 under influence of Kenneth Bruce whom she met online. Another victim of online romance fraud, Russel Loach was sentenced to jail for 4 months for laundering more than $100,000 funds to bank accounts in Nigeria. According to Loach, he transferred the money in response to a claim that “his partner” has been kidnapped and he had to transfer to save her.

Identity verification putting an end to Catfishers 

Taking into account such incidents and losses, online dating scams aren’t a thing to be taken lightly. Trust is the fundamental factor in online dating business without which a site can lose credibility within a blink of an eye. The key to building trust is the secure onboarding of real people. Some online dating sites are introducing built-in checks in their site to verify the profile authenticity through complex algorithms. These algorithms are able to detect fake profiles based on suspicious patterns.

However, these checks are not much effective in combating the scammers since they detect profile after some time of creation. Till the time, fake profiles are caught, the loss has already incurred. Therefore, another solution is needed that is missing on many social services today including social media and dating sites; digital identity verification is the one.

Many organizations are providing online identity verification solutions in digital marketplace for dating sites and applications to tap into. In fact, some renowned dating sites have already started incorporating such services to deter romance scams by keeping fraudsters and organized criminals at bay. 

Digital identity verification services ensure secure onboarding of daters on the site by verifying and authenticating their identity at the time of profile creation. This enables the dating websites to get rid of the catfishers and providing the premium way of dating to their users. Whenever a user operates his/her profile, ID authentication can check if it is used by an authorized person or not through liveness detection.

Moreover, the dater profiles can be checked against criminal records and other authentication checks to be clear without violating any compliance laws.

Ring doorbell gives user data to Facebook and Google

Ring doorbell gives user data to Facebook and Google

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Recent investigation suggests that Ring doorbells are exposing the customers’ data to companies such as Facebook and Google.

The ring app was launched in May 2018 in the US. In a recent investigation, the Electronic Frontier Foundation found that the app was “packed” with third-party tracking that enabled the application to send out the customers’ personally identifiable information (PII) to companies.

The investigation found five companies were receiving a wide range of information from the app. The information includes, but not limited to, names, IP addresses, and mobile networks. However, Ring claimed that it limited the amount of data that is shared. In its statement to Gizmodo, the company said

“Like many companies, Ring uses third-party service providers to evaluate the use of our mobile app, which helps us improve features, optimize the customer experience and evaluate the effectiveness of our marketing.”

EFF stated in lieu of sending the data, Ring was failing to protect the user’s privacy, since only one of the trackers has been mentioned in the company’s privacy policy.

Ring Privacy Notice

EFF said

“The danger in sending even small bits of information is that analytics and tracking companies are able to combine these bits together to form a unique picture of the user’s device”

Amazon bought Ring in 2018 and has been selling a range of home security cameras and doorbell since then. It has been criticized many times for partnering with over 200 law-enforcement agencies and providing its devices for surveillance.

Amazon was encouraging the neighbors to spy on each other – claimed Fight for the Future, the digital rights campaign group. Moreover, last year multiple stories regarding Ring cameras being hacked came into light. One Alabama-based man is leading a group of legal action against the company over products’ security. He claims that a hacker spoke to his children via Ring camera.

Max Eliaser, Amazon’s software development engineer indicates that “Ring should be shut down immediately and not brought back.

“The deployment of connected home security cameras that allows footage to be queried centrally are simply not compatible with a free society,”

What to expect from Booming Identity Verification Market in 2020?

What to expect from Booming Identity Verification Market in 2020?

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Technologies hatched by fourth industrial revolution such as the Internet of Things (IoT), robotics, virtual reality (VR) and artificial intelligence (AI) are changing the trends in marketing and revolutionizing the way we deal in every sector. The same is the case with businesses. These revolutions have changed the way one does business. The fourth industrial revolution including Artificial intelligence augmented reality, robotics has bought a lot of digitizing on the table. This automation has eased many processes that used to take days previously but now can be done in the blink of the eye. Identity verification is one of those procedures that can now be done digitally saving a lot of time and effort. It involves a systemic change across many sectors and sides of the business. 

AI-powered Identity verification solutions include biometric verification, digital document verification, 2-Factor authentication, and age verification that help fight many frauds in the business sector.  The identity verification industry is expected to reach USD 18.12 billion by 2027 as it grew steadily in recent years. Authenticating identities is important for financial institutes globally. To protect a business from cybercrimes, money laundering, account takeover, and identity theft frauds it is mandatory to have a sound identity verification solution integrated into the system. Financial criminals are becoming more sophisticated with the passage of time their game is getting strong. Identity authentication of customers and completing due diligence has never been more difficult or more important. 

What is Identity Verification- A Deep Dive:

Customers and businesses communicate digitally in this digitized world. In this busy world, no one has time for face-to-face meetings or direct contact neither it is considered as a suitable option. Manual authentication trends for physical confirmation of an individual are long forgotten due to the time they take. Digital identity verification technology is now used to verify the individual by facial recognition technology, address verification, document verification done digitally in seconds. The significant increase in digital fraud has caused the loss of millions for individuals and businesses. Businesses are always the easy target of cybercriminals and fraudsters. Customer identity verification KYC as well as business verification KYB is essential to save businesses from intruders and scammers.

Types of Identity Verification Solution:

Following are the types of digital identity verification solutions:

  • Biometric  Verification Solutions:

The biometric authentication system is designed to perform due diligence on the customers by using one type of biometrics – face verification. Facial verification scans the face in real-time and detects unique facial features through a 3D depth perception technique. 

The liveness detection system captures minor facial movements to ensure that an original person is making the verifications. Liveness detection ensures that a paper backed or photoshopped image is not used for verification. Facial verification delivers highly accurate results and that too swiftly, within seconds. It makes fraud prevention and KYC/AML compliance quite easier for the people. 

  • Document Verification:

Digital document verification scans the document picture using OCR technology, the information can be taken from the document. It also authenticates if the document is real and original. By this customer’s authentication can be performed without putting them on a frustrating wait of days. 

  • Address Verification:

Establish proof of residence for verified deliveries and user identity. It scans utility bills, bank statements, etc by using OCR data extraction.

  • 2-Factor Authentication

Verify authorized users remotely through their mobile phones. It provides quick remote user authentication by sending Personalized code fro verification. It is an auto-code generator to provide user access.

  • KYC and KYB Checks:

KYC is essential for businesses and organizations as per regulatory authorities. KYB is also important when dealing with other businesses for the partnership to make sure the other business is a valid company and not a shell company.  These days there are some serious digital security concerns for all sorts of businesses because of scams like digital fraudulent activities, data breaches, and ID theft are on the rise and abusing the systems easily. Such activities are translating a significant revenue loss for the businesses that fall victim to these criminal activities. 

  • AML Screening:

AML screening is a process that defines the role that how a company monitors accounts, detects and reports financial crimes to relevant authorities. AML screening tackles intrinsic money laundering risks the company faces or can face. Customer Screening for Anti-Money Laundering (AML) is the aim of completing due diligence to prevent and deter money laundering, terrorist financing, and other financial crime and fraud. It ensures that no one from the PEP list or with criminal background is becoming part of a business. 

Factors fueling the growth of ID verification market:

Following are the factors that are greasing the wheels of digital ID verification market:

  • Increasing Data Breaches:

It will not be an exaggeration to say that 2019 was a year of data breaches. During the first nine months of 2019, around 7.9 billion records have been compromised according to Risk-based Security Reseach and are expected to be 8.5 billion in the whole year. As per statistics, these numbers are up 112% as compared to mid-year 2018. To mitigate the risk of data breaches it is crucial for any business to give access to the right person only to the sensitive data.

  • Stringent Compliances:

According to the Bank Secrecy Act (BSA) act and the patriot act 2001  KYC is mandatory for banks to know who they are dealing with. The same goes for AML directives for combating the financing of terrorists (CFT) and to hinder money laundering. KYC and AML checks are necessary for financial institutes to perform. It provides a win-win situation for both businesses and customers by filtering high-risk customers for businesses and verifying customers in real-time.

  • Enhanced customer experience

Digital ID verification solutions eliminate the annoying pile of paperwork making the business one step ahead and more customer-friendly. Customers will appreciate your attention to safeguarding their identity, building rapport, and brand loyalty that too in real-time. Replacing traditional checks with face verification saves a lot of time and effort. You do not need to memorize or change passwords since the work is being done by your biometrics in lesser time. 

  • Increased Security for Rising Scams :

It’s more important than ever to verify the identities of customers due to an increased risk of terrorist funding and money laundering in this digitized world. ID verification technology is a great tool to instantly verify the identity of any visitor quickly and easily, making both customers and employees feel safer. It fightbacks forgery like account takeover, fake identity, identity theft, credit card fraud, etc. 

  • Easy Integration in System:

Identity verification solutions have another advantage for businesses and that is it can be easily integrated into the system. No additional hardware is required at times for these verification solutions such as for face verification technology. This provides businesses with an edge providing another reason to adhere to this technology.

Taking into account these problems, every business wants to protect itself from fraudsters, saving them time and cost for fulfilling the orders of customers who don’t exist, henceforth preventing them from accessing the business and carrying their illicit activities. The use of digital verification services is a safer and cheaper solution in the long run with real-time verification results. The ID verification and authentication solutions are quite vigilant solutions for businesses since they make it easy for organizations to achieve a secure customer base while enhancing the customer experience as well. These are the reasons why businesses are adhering to these technologies making the ID verification market boom tremendously. 

Pakistan’s State Bank unveils new AML/CFT regulations for Forex Firms

Pakistan’s State Bank unveils new AML/CFT regulations for Forex Firms

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State Bank of Pakistan on Tuesday amended Anti-money laundering (AML) and Counter Financing of terrorism (CFT) related regulations in foreign exchange companies manual 2018 to further align them with the FATF action plan.

The global finance watchdog is going to announce its decision regarding the country’s deficiencies in AML/CFT laws.

“Exchange Companies shall take steps to ensure that there AML/CFT policies adhere to FATF regulations,” the SBP said. To achieve this, their policies, SOPs, compliance programs, and delivery channels will be monitored on an ongoing basis by the board of directors.

Foreign Exchange companies are further required to identify the customers and verify their identity on the basis of authentic documents, data or information. The need to identify if there is a beneficial owner who isn’t the customer.

For exchanging any foreign currency equal to, or below, the threshold of USD 500, exchange firms may resort to normal customer due diligence, wherein details like name and number of identity documents should be obtained at the minimum if there are no circumstances of a suspicious transaction.

According to the amendments by SBP, Forex firms shall employ automated systems for customer risk profiling, AML screening, and transaction monitoring. Moreover, the firms are required to take appropriate measures to manage and eliminate any risk that may arise afterward. 

Why Digital Identity Verification is Booming – A Detailed Insight

Why Digital Identity Verification is Booming – A Detailed Insight

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According to the report “Digital Identity & Document Verification Market & Technology Analysis & Forecasts 2019-2024”, services of digital identity and document verification are estimated to be a market of $15 billion by 2024. Goode intelligence says that the estimation is a 20% increase in the global market as compared to 2019. There are several perspectives that are fueling this growth. Among these, one is the increasing digital frauds due to which businesses face several issues. The second being identity verification a requirement by local and global regulatory authorities.

Identity verification is performed to verify each identity that is becoming part of your system. It is important to deter the risks of digital fraud by capturing, verifying and recording user identities. Lack of digital identity verification practices result in heavy monetary loss and are vulnerable to business reputation. 

From Manual to Digital Identification

Previously banks and other financial institutions used to verify onboarding identities manually by verifying them against documents and biometrics. Traditional verification practices are time-consuming and require additional human power. On the other hand, it is hefty for customers to wait in queues for hours. But, it is not less than a challenge to ensure business security from bad actors in digital platforms. Either it is a bank or any online business, its digital problems need digital solutions that are now available in the form of digital identity verification. 

With the advent of digitization, there is a need to take advantage of AI and ML technologies and its algorithms to automate the verification process. The integration of technology-based API with online systems ensures identity verification of each onboarding identity in real-time. Just to make sure that no unauthorized or suspicious identity becomes part of the legitimate system, identity verification is performed at the time of account registration and sign-in. 

Factors Fueling Growth of Identity Verification Market

Small and Medium Size Enterprises are experiencing high risks frauds in the form of cyberattacks. These businesses either limit the scope of business services but need to cater to a large population. A bad actor can ruin the seamless business processing with its malevolent activities. Large enterprises hold a higher identity verification market share. However, SMEs lack digital solution integration for fraud prevention due to financial constraints. Although being KYC and AML practices, a regulatory requirement, small businesses are moving towards integration of identity verification services into their system that automatically verifies each onboarding identity without compromising user experience.

Identity Theft

In 2018, a report by the Federal Trade Commission presented 1.4 million fraud reports. The loss due to these fraud totals to be $1.48 billion. Most common frauds, according to FTC’s, Consumer Sentinel Network Data Book, are debt collection, imposter scams and identity theft. High-risk customers target online platforms and find out loopholes that can help them commit these frauds. 

Who is at risk of Identity theft fraud?

Most of the online users who neither take security alerts seriously nor report irregular online activities/warning signs regularly are prone to the incidences of identity theft. Children and old people are most likely to be attacked by identity theft. Their identities are helpful for criminals as they have not previously been used in any criminal record and a clean state for fraudulent activities can be gained. Similarly, old people’s identities are targeted through the internet or email phishing scams. Their identities are considered trusted because of their age and help fraudsters easily commit. 

Who is at risk of Identity theft fraud?

Credit Card Frauds

Credit card frauds are prevailing in the category of identity theft frauds. 167,000+ online users reported credit card accounts that are opened with their personal information. Cybercriminals earn millions every month by hijacking financial information of customers in the form of the credit card information. In 2018, more than 57,600 websites lost their confidential data from payment forms. New accounts are exposed to credit card frauds more. 

Account Takeover Frauds

Account takeover frauds rose up to 79% in 2018 as compared to the previous year, 2017. Fraudsters use innovative technologies to hijack the accounts of online users. Using malicious scripts they use credentials stuffing techniques in which an automated script uses combinations of usernames and passwords to take out the right credentials user has saved an account with. The account takeover fraud is followed by many other frauds, for instance, stolen identity information is used in various fraudulent activities among which money laundering and terrorist financing are highlighted. 

How Automated Digital Identity Verification Helps?

Unauthorized access, root to various online frauds. Identity verification solution helps cut these roots by identifying each identity access to your business platform. It seems a long process of verifying identity, but if it takes just 30 seconds then?

A digital identity verification solution is robust that identifies the individuals in real-time without compromising user experience. It helps authenticate. Using document verification, identity is verified by capturing the details from documents using OCR technology. Similarly, biometric authentication is done that verifies identity in seconds using facial recognition technology. Small as well as large businesses are integrating these technologies to make their platforms secure from any fraudulent access. 

Due Diligence Compliance

Identity verification is more than an approach to avoid online fraud, it is a regulatory requirement in several countries to ensure customer’s data protection and privacy. GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act) are regulations for customer data privacy to prevent it from getting into bad hands. Moreover, the growth of the digital identity verification market is driven by Know Your Customer (KYC) Anti-money Laundering (AML) and Customer Due diligence (CDD) requirements.  

Digital identity and document verification consist of these four steps:

  1. Asking the user, “are you a real person?”
  2. Verifying authenticity of documents
  3. To ensure that you can continue business with the individual
  4. Enhanced due diligence to verify customer background

Among these, in the last step, identity is screened against global watchlists and PEPs records to make sure that your onboarding customers are not part of any criminal activity.  Customer screening helps mitigate the risk of onboarding an entity that could be high-risk for the business. 

Top 5 Challenges in Online Identity Verification

Top 5 Challenges in Online Identity Verification

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The online ecosystem of identity management is more dynamic than ever before. It’s a flexible and interactive system that makes it possible to establish and manage digital identities. These are critical in acting as authentic proofs of identity for accessing modern sharing systems such as in ecommerce platforms, digital banking, travel services and more. 

As AI-based technologies expand to reach larger audiences, serve more customers and secure businesses, hurdles in digital identity verification have become more serious. Maintaining high security standards and meeting strict regulations are by far the most common challenges that separate bad actors from legitimate vendors. 

Here are the top 5 challenges in online ID verification facing organisations and service providers while striving to perform efficient and secure online interactions.

1. Presence of inefficient and costly identity regimes

Defining online identity verification

As a digital service, online identity verification is still beginning to pick up steam, and there are several variants of the definition of IDs and how they are verified. The basic idea behind screening identities is relatively simple, but, as online transactions have increased in complexity and volume, the concept of digital identity verification has developed more than one connotation. 

For different sources and channels, users are often uncomfortable in providing details for screening purposes. Often basic credentials such as name, address and official ID number are not enough to recognise a person and develop relevant profiles. Therefore, in order to gather relevant data, service providers need to act responsibly and make identity verification processes more transparent. 

Changes in online verification processes 

With a rising number of entrants into the identity verification market, as well as the nascent nature of the industry, processes in digital identity are not wholly linear. This subsequently creates market irregularities in terms of serviceability and reliability of identity services. Companies are constantly updating procedures in order to comply with state laws and regulations which are also evolving to meet growing data privacy needs across countries and industries. 

In order to mitigate security and compliance risks, companies will have to stay ahead of industry trends, and try to understand how best to manage identities in the digital economy. 

2. Hurdles in determining accuracy of identity verification

Repeated digital identity verifications

Performing accurate, efficient and customer-friendly verifications is central to maintaining a solid customer base, and establishing a brand as a trusted service provider. This points to the integration of a dynamic identity verification solution to perform repeated verifications and engaging large audiences. Fraud prevention through KYC processes are extremely relevant in this regard. Ongoing monitoring checks also involves vetting existing customers repeatedly for authenticity and reliability.

Technology and back-end support must therefore be updated, reflecting tangible resource investments in maintaining secure platforms. Not only does this secure new and existing customers, it saves lengthy efforts in fixing static solutions of identity verification. 


3. Solving data availability and management issues

Collection of Personally Identifiable Information (PII)

Tracing individual identity is an essential part of the verification process, requiring data points to be matched and cross-checked for high accuracy. This entails collecting personally identifiable information (PII), which is essential for firms to collect, but often make customers uneasy. Giving out basic credentials and data on credit history opens up a wide range of security risks, exposing personal data to the very real threat of digital hacks. 

Assuring the maximum level of security and enabling risk management will require identity experts to weigh in on the various data collection methods employed for online ID verification. Users must have control over data collection methods and the use of crucial personal details for online validations. 

Unavailability of data 

For high security and service standards to be accomplished, companies will need to look into solutions for online database development. Personal credentials and documents need to be cross-checked with official databases developed by state authorities. In the absence of such data sources, identity verification checks cannot be performed for the purpose of authentication or, for that matter, to refuse access. 

In the end, determining that someone is really who they say they are will require scores of data points, all verified against a reliable source, before it can be applied to the provision of digital services. 

4. Catering to data protection and privacy regulations

Strict identity verification regulatory requirements

With a steep increase in the application of online identity verification, regulatory requirements are also shaping up. Privacy evangelists are questioning the way personal data is collected, stored and screened in a variety of settings. This means that firms have to keep up with changing tides of policies and regulations. 

While digital technologies are huge enablers of customer friendly services, concerns around data security are also gaining momentum. International standards and regulations catching up with technological advancements and adding complexity to the equation. The GDPR, for instance, came into effect in 2018, and has been a central guiding source for regulated companies, especially to provide users with greater control over data. Similarly,  AMLD6 provides a framework to combat money laundering and terrorist financing, rolling out tougher penalties and liabilities for all entities. 

This is especially true for maintaining strict controls in the case of online gaming, dating, and gambling sites that house age-restricted content. Digital identity screening seeks to protect minors from all such services and from the threat of identity theft

High levels of diligence in identity systems is mandatory for firms to manage services effectively and ensure digital business growth. Security standards also need to be compliant and must reflect data sensitivities where necessary. 

5. Enhancing digital trust and customer experience

Working towards an industry competitive edge

Customers can bank on a number of digital service providers in the current online ecosystem. High risk transactions, suspicious data collection mechanisms and unfriendly interfaces are factors that easily put off both existing and prospective customers. Establishing trust in the market, and ensuring that a high degree of trust is tantamount to achieving long term business success. 

Opportunities in digital identity management rely on finding the right solution for the right user, and extending a helpful hand in dispute management. Services must be developed with a customer-centric approach in mind, and be standardised according to security standards. In the long run, online identity verification tools must deliver usability in the following areas:

  • Quickly and accurately screen digital identities
  • Provide users with data security and ownership
  • Perform repeated verifications for consistency
  • Safeguard against potential cybersecurity threats
  • Risk and compliance management for business growth

It all boils down to striking a balance between data management and identity needs, while keeping in mind customer sensitivities with regards to data privacy.

France to Test Digital Currency in the First Quarter of 2020

France to Test Digital Currency in the First Quarter of 2020

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The digital currency race is building up and every country wants to take part in it. Now, Banque De France, France’s central bank, has announced plans to begin testing the digital currency in the first quarter of 2020. 

According to AFP, pressure from Facebook’s Libra and related initiatives is the reason for this quickened timetable. 

According to Francois Villeroy de Galhau, the governor of the central bank, digital currency is a point of focus for the bank. 

“We want to start running experiments rapidly and will launch a call for projects before the end of the first quarter of 2020.”

Villeroy spoke at a finance conference in Paris and said he is eager to support the use of CBDC in order to settle financial assets between the financial companies. 

“We have to make our contribution to this innovation, but in a serious and methodical way…I see an advantage in quickly moving forward to issue at least a wholesale central bank digital currency in order to be the leading issuer in the world and thus reap the benefits of having a benchmark CBDC.”

France is among several countries, including the US and China and some African countries that are experimenting with digital currencies.


The Expected No-Deal Brexit and AML/CFT Laws in the UK

The Expected No-Deal Brexit and AML/CFT Laws in the UK

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The current prime minister of the UK Mr. Boris Johnson made a statement that the UK should be ready for no-deal Brexit in 2020. In case the UK is unable to get the Brexit deal done by the end of December 2019, it’ll have to go for no-deal Brexit in January 2020. And the prime minister is all set to get the Brexit done by the end of 2019. In case the Brexit is done, December would be the transition period and the UK will get some time for getting things on the track.

Brexit – A Timeline

In June 2016, the UK voted to leave the EU and then prime minister David Cameron resigned the other day. Since the UK took the initiative of leaving the EU, it’s political infrastructure faced some significant changes including the resignation of the last two prime ministers and the delays in the Brexit day. The latest delay was of 31st October 2019. It was expected that the UK will leave the EU with the deal designed by former prime minister Theresa May but it got postponed and now it is expected to be completed in December or the UK will have to leave the EU with a no-deal. 

What is a no-deal Brexit?

A no-deal Brexit is a scenario that depicts that the EU and the UK were unable to reach a joint agreement on Brexit and the UK would leave the EU immediately without a transition period. The UK will leave the single market and the customs union and will have to follow the laws of the World Trade Organization (WTO). Also, the UK will have to introduce its new regulations for AML compliance and the country will face a major shift in its legal framework. The country will also have to form new trade agreements with neighboring EU countries and might face delays in trade due to this shift. 

No-deal Brexit will have an impact on the seamless implementation of AMLD-5. In case the UK leaves the EU without a deal it will have problems in data sharing that is to be practiced in case of implementation of the AMLD-5. 

What is a deal Brexit?

A deal Brexit is what the UK seems to be struggling for the past few years. It means the UK and the EU will agree on certain “Divorce terms” related to trade, law enforcement, data sharing, immigration, etc. 

So far it seems that the UK will be forced for a no-deal Brexit due to the approaching deadline of the end of December 2019. 

What will be the consequences of no-deal Brexit on the financial infrastructure of the UK?

Nicola Gratteri a public prosecutor in Calabria predicted that Brexit might aid the Italian mafia in pooling in their illegal money to the UK. Shell companies will be the safe haven of criminals to legitimize their cash proceeds from drug dealing, human trafficking, etc. 

AML laws and AML compliance 

The current AML laws of the UK are aligned with the EU. But in case of a no-deal Brexit or a deal Brexit, the UK will have to form its own laws. The only difference is that in case of a no-deal Brexit it’ll have to form new laws quickly as there’ll be a gap between law enforcement and this gap will be exploited by the criminals. 

The businesses in the UK and the EU will have to change their AML/KYC compliance practices as per the requirements of the new laws. The EU countries will be in a transformation period and the businesses will have to follow to cope up with the changing laws. 

AMLD-5 and its implementation

The AMLD-5 is expected to be implemented in January 2020. AMLD-5 increased the scope of AML regulations. The identity verification threshold for the prepaid cards was reduced to EUR 50, in case of remote transactions. 

The UK has always been very keen on implementing AML/KYC regulations in the country. In case the UK leaves EU with no-deal Brexit it’s AMLD-5 implementation will be affected by this shift. It’ll no more be liable for AMLD-5 compliance in its country. But it is also expected that the UK will change its Money Laundering Regulation (MLR) as per AMLD-5 regulations to practice thorough risk prevention. 

The businesses in the UK are now swinging between two scenarios, either they should prepare to follow AMLD-5 in 2020 or not.

Trade friction

Not only this but the UK will face friction in its trade and it will no more be a part of the single market and it will cause regulatory friction. As the UK will not have any transition period to settle things down unless the new laws are formed and implemented properly. 

In case the UK-leaves with a no-deal Brexit it would have the opportunity to make trade deals with other countries without long delays. In case of a deal, the scenario would be the opposite and the UK would follow the EU laws during the transition period. 

How Brexit will impact businesses in the UK and the EU?

Brexit is bound to affect the business community. It is expected that the community will face a plethora of changing regulations while continuing trade in the EU region. The businesses will have to change their AML/KYC compliance practices. In case the EU adopted the AML regulations of the EU, things might become easier for the businesses. 

The AMLD-5 implementation is also a headache for businesses these days as they are uncertain if they should follow the instructions or not. 

The uncertainty in the financial regulatory landscape of the UK is most likely to be exploited by financial criminals looking for loopholes in the regulatory framework of a country. 

How Digital AML/KYC screening will help businesses in the upcoming plethora of guidelines?

Also, the businesses dealing in the EU and the UK will face problems in aligning their AML/KYC compliance practices as per the regulatory requirements in both the regions. The digital KYC solution is designed to cater to the global AML/KYC compliance requirements of businesses. Using a global AML screening solution will help the businesses retain growth even if there is a crisis situation.

Brexit is expected to be completed in December 2019 and it is expected to change the financial landscape of the UK forever. In order to come out of this storm of changing regulations, digital KYC and AML screening solutions will be helpful.

FATF Issues Guidance Paper For Incorporating Digital ID

FATF Issues Guidance Paper For Incorporating Digital ID

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The Financial Action Task Force (FATF) has issued a guidance paper, last week, that outlines a risk-based approach to governments, financial institutions, and other relevant enterprises. The guidance paper guides these entities to use digital identity verification services to comply with Anti-Money Laundering (AML) and Counter Financing Terrorism (CFT) requirements under its standards. 

According to the paper, 

“The rapid pace of innovation in the digital identity (ID) space has reached an inflection point. Digital ID standards, technology, and processes have evolved to a point where digital ID systems are, or could soon be, available at scale.” 

The paper also points out the emergent role of digital payments. By 2020, digital payments will be growing at an estimated 12.7% annually and 70% of the world GDP forecast will be digitized. By understanding the role digital ID systems play in this swift expansion is important in achieving AML/CFT compliance and enhancing Customer Due Diligence measures. 

Financial institutions have to recognize and identify the risks that come with incorporating large scale digital ID systems. The associated risks can be privacy, fraud, governance, identity theft, and data security. 

FATF Guidance on digital ID

  (Source: @FATFNews)

FATF encourages authorities to “adopt policies, regulations, supervision, and examination procedures that encourage regulated entities to develop an efficient, integrated approach to digital ID streaming applicable digital processes across all relevant efforts.” 

Currently, the FATF is consulting private sector stakeholders and is also welcoming any feedback or proposals from financial institutes, banks, virtual asset service providers, authorities and regulators until November 29, 2019. 

Another element the paper focuses on is the implementation of “Recommendation 10” which specifies Customer Due Diligence measures. Through the use of digital ID systems, verifying the authenticity of clients at on-boarding, ongoing due diligence and Third-Party Reliance (Recommendation 17) is encouraged. 

Find more relevant resources on FATF:

FATF Issues Guidance Paper For Incorporating Digital ID

Online Identity Verification – Why Shufti Pro is Perfect for Digital Authentication

Online Identity Verification – Why Shufti Pro is Perfect for Digital Authentication

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In a short period of time, Shufti Pro has managed to make a significant mark upon the end-to-end KYC or Know Your Customer verification services industry. It has made monumental efforts to revolutionize online identity verification services for the financial services sector, e-commerce stores, forex and crypto exchanges, ICOs and many other businesses that look towards enhancing their KYC and AML procedures. Here are five reasons why Shufti Pro is perfect for online identity verification;
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Face, Document and Address Verification

Shufti Pro offers a number of online identity verification services through its AI-based verification software including facial verification, document verification and address verification. The facial verification feature can verify a user with the help of a top of the line facial recognition software. Through flawless OCR (Optical Character Recognition) abilities, the system can extract data from documents in a seamless manner and can verify a user’s identity in an instant. Shufti Pro also allows businesses to verify the addresses of their users using their utility bills, bank statements and ID cards.

Online Identity Verification

Hybrid Verification Technology

Shufti Pro offers a unique combination of hybrid verification technology that uses both artificial and human intelligence to perform user verifications. The amalgamation of AI and Human Intelligence allows for enhanced accuracy in the verification results. It immensely reduces the number of false positives in the identity verification process.

KYC Compliance is getting difficult for banks and financial institutions but with a KYC service provider such as Shufti Pro, KYC becomes hassle-free

Online Identity Verification

AML Screening

Shufti Pro’s AML screening services are the perfect solution for financial services firms. It enables them to fulfil their AML compliance obligations in a seamless manner by screening individuals through global financial risk watchlists. Shufti Pro can easily determine high, medium and low-risk PEPs (Politically Exposed Persons) through its advanced AML background checks. The AML databank is updated every 14 minutes to account for any changes in the sanction lists.

Online Identity Verification

Global Coverage

With universal language support and the ability to verify over 3000+ documents, Shufti Pro provides global coverage for its verification services. At present, Shufti Pro is available in over 230 countries and is thus able to cater to clients from nearly every corner of the world.

Online Identity Verification

Pay as you go Pricing

On top of everything, Shufti Pro makes life easier for its customers by offering a Pay as you go pricing model for availing its services. This model allows users to choose the services they want and pay for them accordingly. It allows our clients the leverage to only pay for the services they are using. Shufti Pro also offers a free trial period of 7 days, allowing businesses the chance to test its services before availing them full time.

Identity Verification

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Why Payment Processors Need Mobile ID Verification?

Why Payment Processors Need Mobile ID Verification?

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One of the many by-products of progressing technology is payment systems that have cropped up over the years. The extinction of cash payments has long been threatened by credit and debit cards. Online payment processing systems take this to a whole other level by allowing users to make online purchases effortlessly. However, issues like large scale data breaches, frauds and scams like identity theft and credit card fraud put a hamper in this process. These issues directly affect everyone involved in a transaction including a merchant, consumer as well as the payment processor. Each party has to deal with the costs of fraud and cybercrime, both structurally as well as financially. But the fraud prevention solutions currently available in the market have enabled businesses to detect fraud in real time. Mobile ID verification is one of these solutions that can secure online transactions including payment systems.

According to reports, in 2018, merchants in the US ended up losing upwards of $6.4 billion due to payment card fraud. For businesses that are still in their infancy, online fraud might not be much of a problem to consider as they would be processing a minimal number of transactions in a day. However, as businesses grow they have to consider the volume of transactions they receive in a day. The utmost priority of the business must be to secure these transactions effectively.

How Does Mobile ID Verification Work?

The fact remains that companies cannot afford to continue losing billions of dollars due to frauds and need to be proactive about implementing fraud prevention solutions. An ID verification solution can perhaps prove to be the most effective form of anti-fraud measure for payment systems to adopt. Digital ID verification systems use a multi-layered system that can verify users through different verification methods. Firstly, it involves document verification, wherein the user scans their ID document (passport, ID card, driver’s licence etc.) to be verified through an ID verification software. A user can be further authenticated through a facial verification system that uses facial recognition software to authenticate users remotely. Another way to verify users is through an address verification system. An AVS allows online merchants to verify the address of a customer using their recent utility bills.

Here are a few reasons why a customer identity proofing system is important for payment processors and gateway systems;

Fraud Prevention

Among other things, the first and foremost priority for businesses and their payment systems is the prevention of fraud. The convenience and speed that comes with online payment processing are normally at the expense of security. In 2018, the case of Venmo serves as the perfect example. Venmo is a payment service owned by the renowned payment gateway Paypal. The former was subjected to a humongous $40 million in payment fraud in the first quarter of the previous year. This is not an isolated case; payment processors are often vulnerable to fraud due to the lack of prevention measures they implement in their systems.

Establishing Contactless Payment Systems

Online payment systems are meant to be fast and efficient. Verifying individual users online can be a challenge for businesses and payment channels. ID verification presents itself as the perfect solution in the landscape of payment processing systems. With online payment systems, e-commerce merchants found a way to establish a contactless transaction system. But authenticating those transactions is an entirely different matter. A number of businesses and payment systems still use elaborate passwords and knowledge-based authentication (KBA) techniques for user verification. An online identity verification system can establish a seamless verification process, allowing users to authenticate themselves instantly through thier IDs and facial scans.


Eliminating Ongoing Issues in Payment Systems

Online payment systems tend to have a number of other operational issues that affect their efficiency. Some of these issues include chargebacks, card-not-present fraud and false positives. All such problems cost payment processors profoundly. Data breaches are an added evil in this situation, inhibiting the performance of payment systems. Payment processors can, however, combat the problem of payment fraud through a mobile KYC solution.

Cater to More Services

Integrating a mobile ID verification solution can enable payment processors to provide services to a wide range of businesses or services. There is a range of apps and website that look for secure payment systems to incorporate into their interfaces. By adding payment functionality to online businesses payment providers can cater to more services and scale their services to a wider set of audience.

Build a KYC Compliant Payment Solution

With the increasing regulations by financial regulators across the globe payment processors need to be vigilant about complying with KYC (Know Your Customer) regulations that require businesses to properly verify their customers. Businesses face chargebacks in case of credit card fraud and identity theft. On top of that, they have to pay a fine to the bank or credit card company of their customer for not implementing sufficient KYC measures. Integrating an identity verification software, businesses can comply with KYC regulations and requirements thereby avoiding massive chargebacks and fines in case of fraud.

Organisations still implement outdated KYC methods that are slow and inefficient. Most of them use lengthy passwords and two-factor authentication to verify customers. All such methods are subject to spoofing and data breaches. Secure payment processes can be established through robust client verification procedures that are least subject to fraud. A mobile verify ID verification service is currently the most effective solution. It enables payment processors to verify credit card payments with increased accuracy, thereby eliminating fraud.

Shufti Pro is a KYC verification services provider that caters to a wide range of businesses. It provides mobile ID verification services based on an AI-enabled verification system. It can verify users from over 230 countries in real-time using a hybrid verification technology of AI and Human Intelligence.

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ID Verification for Ultimate Subscription Fraud Prevention

ID Verification for Ultimate Subscription Fraud Prevention

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Cellular phones were first introduced in the consumer market in 1973 when Motorolla first introduced its handheld mobile phone. Fast forward, almost half a century later in 2019, we are now expecting 5G networks to become mainstream by the end of the year. This rapid progression in cellular network technology has been a challenge for the telecom sector. However, over time mobile network operators have risen to the challenge and kept up with the latest trends. At present, the telcommunications market is a highly saturated one with an extremely high switching rate. Companies find it increasingly difficult to retain customers to come up with innovative services. Amidst all this, subscription fraud is ever prevalent in the sector. Therefore, ID verification presents itself as the perfect solution to counter fraud, in addition to providing a competitive edge to mobile service operators.

Telecom frauds are not a new concept and have plagued the sector for a long while. Subscription fraud is among the most common types of telecom fraud. Criminals use stolen identities and credentials to purchase SIM cards, which later become a headache for the mobile network operators (MNOs). Ultimately this also creates a sense of distrust amongst customers when they find their credentials are being used fraudulently to commit subscription fraud. Online identity verification services can not only reduce the risk of identity fraud in the telecommunication sector but also establish a seamless customer experience.

Existing Practices for Customer ID Verification

Most telecom companies currently use standard, in-person verification for authentications. A lot of other providers have nearly non-existent identity verification measures. Ineffective measures for authenticating users before issuing them service has highly detrimental costs for MNOs. In addition to that, the legal exposure that comes with allowing criminals to use telecom services to commit fraud is massive. The increasing use of unverified SIM cards for illicit activities ranging from kidnapping to terrorism also has regulatory authorities on edge. Therefore, they are also encouraging MNOs to fulfil Know Your Customer KYC regulations effectively.

What does Automated ID Verification Offer for the Telecom Sector?

If increased telecommunication security is not motivation enough, here are a few other benefits offered through digital ID verification for mobile operators;

  • Reduced Friction in Customer Onboarding – Online ID verification is faster and more accurate thus is immensely helpful in reducing friction in customer onboarding procedures. Customers often tend to find manual procedures slow. According to a report, 76% of mobile network subscribers prefer single sign-on service from their MNO. The added possibility of error can increase their frustration, thus causing them to abandon the process entirely. Automated solutions allow for instant onboarding procedures by electronically extracting data from IDs, thus enabling frictionless customer onboarding procedures. This also helps in improving customer service operations, thereby establishing customer-centric enterprises.
  • Enhanced Operational Efficiency – An ID verification software uses Optical Character Recognition or OCR to extract data from scanned documents, thus eliminating the need for manual verification procedures entirely. A customer’s identity is further authenticated through biometric facial recognition. All these features combine to streamline operations for the telecom sector, thus increasing their levels of productivity.
  • Enhanced Security – As detailed before, increased levels of security is the primary reason for implementing a digitised identity verification solution for MNOs. Such systems can catch a fake ID within seconds, thus enabling telecom companies to detect fraud instantly. Such systems are equipped with identifying standard government-issued IDs from several countries, therefore, making it near impossible for the perpetrator to commit subscription fraud. The risk of identity theft is further mitigated through facial recognition ID verification, that matches the image in the ID to the real-time image captured by the user. Digitised ID verification is highly effective as it counters spoof attacks and can identify photoshopped images as well.
  • Build Customer Loyalty – Proper and active measures taken by MNOs to secure customer data and identities, can establish trust amongst users thus increasing customer loyalty. Along with increasing security in their systems, telecom companies can also comply with government regulations that require companies to verify customers properly and to keep records of those verifications. By fulfilling these regulations, MNOs can also enhance their reputation in the market and build trust amongst regulators as well.

The Ultimate Solution for the Telecom Sector

Shufti Pro is a KYC verification service provider that offers identity verification services through an AI-powered verification software. It uses a hybrid technology of AI and Human Intelligence to verify users. Not only can it verify users within seconds, but it also has universal language support that allows it to cater to users and clients from all over the globe. It offers the ultimate telecom fraud prevention guide to MNOs and offers them every benefit listed above and more.

ID verification from Shufti Pro is not only the best but the ultimate solution for businesses looking to reduce fraud and enhance their operational efficiency. Through its real-time document verification and online facial recognition, Shufti is able to verify users accurately and seamlessly.

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Intelligent Security Systems & Digital ID Verification

Intelligent Security Systems & Digital ID Verification

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Most technology solutions present a compromise between convenience and security to their users. In that, as a system is made more secure, it becomes harder and harder for users to access. This tradeoff has become somewhat of a challenge for different businesses as they seek to provide both attributes in all their digital channels for customers. The e-commerce sector, for instance, faces the repercussions of credit card fraud or identity theft in the form of chargebacks and fines. Digital ID verification solutions present themselves as the ultimate solution where companies no longer have to compromise on accessibility while providing security to customers.

Every organisation today faces the challenge of digitising its operations to provide fast and easy access to services to customers. Whether it is developing multiple channels to engage customers or providing secure payment channels for online buyers, businesses are constantly establishing better IT systems to increase convenience for customers. With the rise and progression in technologies like Artificial Intelligence and the Internet of Things, the IT industry has been able to develop solutions that are both efficient as well as secure.

AI systems are being constantly refined and are able to learn from their own experiences. They are being made to perform redundant tasks, suggest the best course of action and minimise risks for the company. With the increased advancement in intelligent systems, businesses can now implement systems that are able to verify users in real-time, all the while lending better security to transactions.

The Problem With Present ID Verification Systems

The prevalent verification systems in businesses are outdated, manual or both. They have become stagnant and inefficient in the wake of increased sophistication in the landscape of fraud. Businesses and financial institutions still rely on stagnant data sources, that makes it harder to achieve accuracy in identity verification. As the increased usage of social media has rendered personally identifiable information or PII vulnerable, businesses must come up with data sources that are more reliable and can establish the true identity of an individual.

Manual verification procedures tend to be prone to error, not to mention time-consuming. Banks have long relied on manual, in-person verifications for clients. Online businesses, on the other hand, had no such verification tools to authenticate their users. The outdated systems that have been used for customer identification and verification are no longer efficient and reliable. They operate on outdated and rule-based systems and, thus are prone to generating false positives. As the staff members sift through false leads, they get to legitimate leads belatedly, thus giving fraudsters the opportunity to get away with their scam.


Building Intelligent Security Systems Through Digital ID Verification

As the landscape of technology progresses at a rapid pace, systems have been developed using modern technologies including AI. Big data analytics and the IoT that can eliminate the construct of inefficiency in its entirety. The digital age has given rise to intelligent security systems that allow companies to curb crimes like identity theft, credit card fraud and money laundering. Systems are available for fraud detection through online ID verification and risk appraisal of customers.

An ID verification software allows businesses to identify and authenticate a customer’s identity within seconds. An identity verification service like Shufti Pro is capable of verifying users through document scanning and facial recognition online. Users are able to establish the authenticity of their identity through the former and proceed to verify themselves with the latter.

Another efficient tech solution for fraud detection is the risk analysis of customers through advanced machine learning-based algorithms.  A risk analysis software is able to detect suspicious activity amongst a client’s transaction history, thus enabling the organisation to detect and prevent fraudulent activity as it happens.

Industries Using Smart Security Systems

Fraud detection and security solutions have a vast array of applications for different industries. Some of the industries where modern technology has helped in revolutionising security include;

  • Healthcare

    The safety of medical records is of the utmost importance in the healthcare industry. Medical identity theft has become more common and prevalent than people care to realise.  With advanced AI-based systems, it is possible to secure these records. There are now systems available wherein doctors can retrieve medical data of their patient through their identity bracelets. Through real-time identity verification, healthcare providers can verify the information of patients thus preventing identity theft.

  • Financial Services

    Financial services industry has long relied on manual methods for client verifications. Through an online ID verification service, they can authenticate a client’s credentials in real-time thus increasing accuracy as well as the efficiency of the process. Transaction monitoring systems can detect threats instantly thus making sure that the bank can deter fraudulent activity.

  • Freelance Economy

    Platforms like ride-hailing services and online consumer to consumer buying platforms also require a certain level of trust among its customers before they can use them. These businesses can increase the levels of trust among its users through online ID verification services.

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ID Verification Trends to Curb Online Frauds

ID Verification Trends to Curb Online Frauds

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Automated Identity Verification Can Play a Significant Role in Fraud Management

Fraud management plays an important role in preventing internet frauds and scams. Systems for online ID verification are contributing significantly towards fraud prevention. The previous year was an uphill battle against online frauds with nearly 1 billion personal identity records stolen during the year. With significant incidents of data breaches including the Marriott data breach, Amazon’s merchant fraud and Atlanta’s SamSam Ransomware infection. The landscape for cybersecurity and fraud protection, therefore, has to keep on evolving with time. 

As cybersecurity threats continue to become more sophisticated in nature, both customers and employees expect the technological landscape to develop solutions that can tackle them effectively. Identity and Access Management (IAM) systems have to improve continually to keep fraudulent activities at bay. Effective IAM is being used by businesses to achieve a number of outcomes including the management of identities, verification of users, and the management of access to applications and APIs (Application Programming Interface).

The future of identity verification systems depends on the amount and types of online frauds that take place. To date, cybercrimes and frauds show no signs of slowing down. Which is why the future of online ID verification continues to evolve and advance. The trends that the identity verification landscape that can be expected over time include;

Evolving Methods for Identity Authentication

Identity proofing or authentication has been a requirement where people have to be physically present to verify themselves and their identities. Financial institutions, banks, government agencies and retail merchants have always required physical proof of identity from a customer or user. But ever since the e-commerce market has gained its place in the industry, it is becoming harder for businesses to identify fraud. The age of the internet has made products and services more accessible than ever before. So why should the methods for identity authentication remain far behind?

As advanced technological solutions powered by artificial intelligence (AI) and machine learning, gain their place in the market, new methods for identity proofing have also emerged in the market. These solutions and systems are only expected to grow over the next few years. They are also expected to change the way people share their identities online or otherwise.

As the need for physical interactions, while conducting transactions decreases, alternatives are being developed for ID verification. The need for verification systems like knowledge-based authentication (KBA) is diminishing as they have proved to be vulnerable. Thus verification measures need to be developed that establish a better connection between authorities and the private sector businesses.

Passwordless Authentication Methods

Creating and remembering unique passwords has always been difficult for online users. Over a decade ago, Bill Gates analysed that password-based authentications will, over time, become obsolete. Sure enough, it seems that passwords alone are not enough to thwart cybercriminals. Moreover, the types of online activity also determine the kind of security a particular action requires. Fraudsters do not pay bills or order small, insignificant things online. Identity authentication measures are expected to evolve in as much that passwordless authentication will be used for trivial and low-risk activities.

Companies like VEON, Microsoft, Accenture and Capgemini have managed t develop advanced systems for identity and access management that use cloud automation and passwordless mobile sign-on that can cope with the challenges of identity theft and cybersecurity.

Behavioural Analytics and Machine Learning

As the applications of AI and machine learning technology become vast and widespread, systems for identity verification have also transformed to provide better and more information to businesses about their customers. Companies are increasingly collecting and using customer data to draw insights for marketing campaigns, improve customer services and fight fraud. Behavioural analytics use complex machine learning algorithms to analyse a customer’s purchase behaviour. Such systems rely on vast quantities of data. They use transactional data to detect suspicious activities. Drawing on a users’ past behaviour, the system is able to determine if a transaction is fraudulent. If suspicious activity is detected on a customer’s account, it reported to the company, who then takes the appropriate action against it.

Biometric Verifications Become More Common

Online businesses and financial institutions are increasingly making use of multi-factor or multi-layered authentication systems. As smartphones, these days have made online facial recognition a mainstream technology, facial biometrics are becoming the standard of online ID verification for companies. Just as the fingerprint authentication method took off, the face recognition ID verification method will be adopted by many businesses over the next few years.

Every company does not have the resources and technology to implement automated ID verification systems. Shufti Pro is an ID verification service that provides real-time verification results for document verifications, facial recognition as well as AML screening checks. It offers comprehensive fraud protection services through a complete KYC package.

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Mistral Pay turns to Shufti Pro for KYC and AML Compliance services

Mistral Pay turns to Shufti Pro for KYC and AML Compliance services

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Shufti Pro has joined hands with Mistral Pay to provide KYC and AML Compliance services to this Malta based payment gateway company. With main customer base located in European Union, Mistral Pay offers personal accounts as well as Merchant accounts to enable ecommerce business.

The collaboration between the 2 tech giants is based upon their mutual resolve of making online marketplace free of fraud and providing top-notch user experience to potential online shoppers. Because of its specific line of work, Mistral Pay was in need of an ID services provider that can verify the credentials of users to avoid the headache of cashbacks. This was becoming a major concern for Mistral Pay in an increasingly user-centric ecommerice world. Artificial Intelligence based KYC services of Shufti Pro proved to be a perfect match for the rigorous demands of ecommerce payments. Shufti Pro offered Mistral Pay to perform each document verification process in 30-60 seconds. The verification services suite of Shufti Pro also included AML compliance, that was another major requirement for Mistral Pay, as they wanted to avoid being subjected to unnecessary regulatory oversight.

CEO of Shufti Pro, Mr. Victor Fredung explains the partnership between the 2 companies in following words:

Shufti Pro is honored to be working with a client like Mistral Pay that is offering seamless payment services to such a large number of individuals as well as businesses at the same time. Our team of experts sat down with Mistral Pay executives and came up with practical workflows to not only ensure the validity of user credentials but to make the process entirely hassle free for end users”

Mistral Pay targets to make ecommerce payments easier for its users and Shufti Pro intends to make that resolve of its partner, a success story. Shufti Pro’s customization and support for large number of documents – especially European documents – will really help Mistral Pay to perform KYC authentication before bringing customers onboard their payment gateway.

GDPR Compliance was also a major factor for Mistral Pay in their decision to select Shufti Pro as their partner company for KYC and AML Compliance services. Non-compliance to GDPR could have caused million of dollars in regulatory fines to Mistral Pay but Shufti Pro has already ensured that its services are GDPR compliant which also safeguards Mistral Pay from any impending regulatory fine, in lieu of data collected for KYC or AML compliance


About Shufti Pro

Shufti Pro is an emerging name in identity management and KYC/AML. It was founded on 31st October, 2016 in Bath, UK. The goal of the company is to enable its clients with seamless customer experience, fraud prevention and undeterred revenue generation. The company offers state of the art SaaS, which engages Artificial Intelligence and Human Intelligence. Businesses can now conduct easy digital verification processes with lesser friction and more advanced technology. Currently offering its services for all countries of the world along with Universal Language Support, the company is located in United Kingdom with its global office in Sweden. Please visit Shufti Pro here.

Shufti Pro Limited

[email protected]

190 Englishcombe Ln, Bath, United kingdom

About Mistral Pay

Mistral Pay is a Malta based payment services provider that is enabling online businesses in conducting e-commerce without worrying about payments and transactions. Accepting payouts from various means and payment modes, Mistral Pay is primarily used by ecommerce businesses based in European Union as third party payment gateway.

Vconnect to verify new businesses on its platform via Shufti Pro

Vconnect to verify new businesses on its platform via Shufti Pro

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BATH, UK – (October 8th, 2018) Vconnect, an online marketplace to connect businesses and consumers, will be verifying new businesses on their platform with the help of identity verification services of Shufti Pro. Vconnect will also be using Hosted Verification Page – also known as HVP – feature from Shufti Pro to perform KYC verification of new businesses applying for listing on their website. Shufti Pro offers AI based identity verification services to its clients, with verification results further corroborated by Human Intelligence.

Vconnect is an SME-tech startup based in Lagos, Nigeria. With features like “request a quote”, “message the business”, reviews, photo uploading and business listing, Vconnect creates a virtual connection among businesses and consumers searching for any kind of business or service from the comfort of their home. With a focus to build a relation of trust with their consumers and to safeguard these users from fraudulent business entities, Vconnect wanted to engage a truly innovative identity verification service. They wanted to make sure that businesses and services provider signing up on their platform, must be reliable and should have genuine credentials.

   Shufti Pro was selected by Vconnect for a variety of reasons but the option of Hosted Verification Page stood out especially for the Nigerian startup. It promised greater control of KYC verification to Vconnect and they were able to decide what kind of information was collected to perform a KYC verification. It also allowed for more seamless experience for businesses registering on to their platform. Talking about the collaboration between the two companies, CEO of Shufti Pro, Mr. Victor Fredung said that:

Usually we have customers that want to perform KYC verification for a global clientele but Vconnect wanted to verify local businesses. We were really excited to work with the team of Vconnect, given the kind of repute this startup has generated for itself on the regional and international level, despite having a business model that primarily caters to a local user base.

Commenting on the option of HVP opted by Vconnect, Mr. Fredung said that

We are the only identity verification service provider in the world offering this feature. Our tech team worked closely with Vconnect executives and made sure that each of their requirement is fulfilled in the designing of HVP. Support for both backend and frontend development of HVP was coordinated with Vconnect and we are sure that service delivery standards of Vconnect will surely get a huge boost because of HVP option from Shufti Pro

Shufti Pro offers proof of verification in its back office that will enable Vconnect to receive real-time analytics about the status of verifications being performed prior to business registration. Video and pictorial evidence will give an appropriate idea to Vconnect why a potential business was verified or even declined to be verified by Shufti Pro.

About Shufti Pro

Shufti Pro is an emerging name in ID verification services. The goal of the company is to enable its clients with seamless customer experience, fraud prevention and undeterred revenue generation. The company offers state of the art SaaS, which engages Artificial Intelligence and Human Intelligence to provide ID verification services. Businesses can now conduct easy digital verification processes with lesser friction and more advanced technology. Currently offering its services for all countries of the world along with Universal Language Support, the company is located in the United Kingdom with its global office in Sweden.

Please visit Shufti Pro here.

Shufti Pro Limited

[email protected]

Unit C401, Westfield Shopping Centre,

Ariel Way, London, W12 7FD

About Vconnect

A Lagos-based homegrown SME-tech startup that is transforming how businesses access their markets and how customers find and engage with local businesses. Vconnect connects people with local businesses by bringing ‘word of mouth’ online and providing a platform for businesses and consumers to engage and transact.

Vconnect also provides businesses of all sizes in Nigeria with a range of free and paid services that help them engage with consumers and build loyalty.

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