Ensure Digital Security with e-KYC Solutions

Ensure Digital Security with e-KYC Solutions

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In today’s world where the distances have been reduced considerably with the advancement of technology. Such so that the systems/computers of the world are also connected through the World Wide Web. The availability of information has become very easy and extremely quick. As is with ease there are problems as well. Not everyone uses the information with good intent. To safeguard the privacy of information has become a daunting task. e-KYC is a solution that can to a very big extent prevent access to restricted information by unauthorised individuals. The system is so effective that even if an unauthorised individual has hacked the Username and Password to access the information, the system would be able to prevent access. The hypothetical situation below will elaborate the problem we are talking about. We will discuss the solution afterwards.

Imagine you are in the IT department of a large commercial enterprise, your company sells a vast number of products and have in your database personal information of several hundred thousand people who are your customers. There are very few employees who have access to that data given all the talk about privacy protection. Your servers have good security protection and everyone with access to the data has passwords that are forcibly changed every week. You feel confident that a data leak would be impossible. Everything goes smooth until one Friday the 13th you get devastating news that your security has been compromised. You find out that a large amount of customer data has been copied. The breach occurred when somebody logged in using the business analysts login password, the problem was picked up when the actual business analyst logged in. The system automatically kicked out both people, but the damage had been done till that time. You start to sweat realising you will have to inform your boss and also the customers and the incident will become a PR nightmare. You investigate the issue and you find that the business analysts stolen laptop was accessed and hacked. You start searching online for a possible solution to ensure that regardless of having a password only the authorised person may have access to the data. Through your search you come across a digital KYC service provider that is offering unprecedented quality for money. It has several powerful tools that make it a very reliable user verification service

As you can see it is quite easy to get into a system remotely with a username and password. Now we will discuss the solution and look at other ways that the system can ensure fraud prevention.


Why e-KYC is the Answer?

If we look at the hypothetical incident mentioned above the problem that occurred is quite common, passwords do get hacked. There is a need for a system that can somehow verify that the person entering the password is the right person. e-KYC service providers are the right tool for this task. They add another level of protection usually at a competitive price. Run by an advanced AI it verifies the user through the use of a webcam or their smartphone to make sure that the correct person is attempting a login.  

How does e-KYC work to secure access?

As we mentioned at the heart of the user verification service is an advanced AI. The AI using the Internet and a webcam verifies the person requesting access. Once the login and password is entered, if it is correct the AI takes over and requests the user to face the webcam. It scans their face checking for anything that might hide or alter their identity — heavy makeup, mask or a picture instead of a live person. Then it will ask the person to display their ID and focus on the picture, name, DOB, and number (if applicable). Then it will match all the details with existing records and only then grant access to the main system once it has a positive match. If it is not matched the user will not be granted access.

So how is a User Verification Service useful in Fraud Protection:

The same user verification service that secures the systems of a company can allow for secure fraud protection. It can stop the use of stolen credit cards or add to the credibility of an institution or organisation. It shows that the organisation that has implemented such a solution actually cares for its users, customers, clients, etc. As it is usually a paid service, the scams and fraudulent organisation never spend on e-KYC solutions or care about securing the way they get their income They just care about the money since they are going to run off in the end.

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Secure Online Merchandises with e-KYC and Digital ID Verification

Secure Online Merchandises with e-KYC and Digital ID Verification

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Selling and purchasing online has its own advantages, both for the seller and the buyer. Online merchandisers save on overhead costs such as renting or owning a physical shop and the expenditures associated with it. On the other hand, the consumer saves time and fuel cost associated with commuting to a physical store. Not to mention the convenience that comes from ordering what you need from the comfort of your home. As good as online commerce or e-commerce sounds it has its drawbacks as well, especially for the merchandiser and this is where e-KYC and digital ID verification services prove extremely helpful. As we progress through this article we will look at the types of problems that can arise in online selling in comparison to selling from a physical location. We will briefly describe electronic  Know Your Customer service and how it can prevent fraud and secure the e-commerce business model. At the end, we will discuss what to look for when searching for an identity verification service provider.

Challenges Faced by Online Merchandisers

As explained previously, the benefits of online selling are many but there are some risks involved with e-commerce solutions. The chances of fraud are higher as compared to regular physical shop based selling. The reason for this is that there is no physical presence of the buyer at any point in time. The payment is usually through credit or debit cards or online payment processors. The catch here is that you cannot see the customer, whereas in comparison to a physical store a customer who makes a purchase can be verified. You can see them and when you take  their signature you can match it with the one on their card. You can also check the original card owner by matching their appearance with the picture on their card (if available on the card) In the online scenario the chance of the use of a stolen card is high and it being caught in real time is low. The other is that there isn’t a solid proof of purchase that can help in the case of chargebacks. Chargebacks can result because of the use of a stolen card or even be initiated by mistake by genuine customers who might have forgotten that they made a purchase. Although online payment processors have strict checks but there is always the chance of loopholes that can result in chargebacks. What is needed here is a service that can assist in providing digital ID verification and proof of purchase. (8 tips out)

E-KYC  – What is it and what are the benefits?

Electronic Know Your Customer ( KYC ) is a new age solution to an age old process that was done manually. Basically it is the process of knowing who an organisation is dealing which includes their general information and background. It is essential, especially for government agencies, banks and educational institutes. Since it helps them counter money laundering as well as identity fraud and theft.

In the age of the Internet where people value time so much more and are used to instant solutions to problems, a new quicker form was needed. This new form came in as digital Know Your Customer processes. Some governments have gone to the extent of centralising all of the citizens data and making it available for institutions such as banks, government departments, insurance companies, etc. So now all these people have to do besides signing a contract is to scan their thumb and all their required data is made available to the organisation. This for example reduces account opening times, insurance policy activation times, etc.

Securing online Merchandisers

Now in the digital age, Know Your Customer ( KYC ) and electronic ID verification has become essential for regular businesses that operate online. They are needed for the same reason that banks and other organisations require them; they deter fraud, theft and money laundering. Unlike walk-in stores, cyber stores don’t have a physical interaction with their customers, they can’t tell if the credit card they are being provided belongs to the customer who is providing it. Also they don’t have authentic proof that they actually sold their merchandise to the original customer in case of a chargeback. All of these issues and the instances of fraud have increased the demand for such verification services.

Private companies besides government departments have come in to assist such online merchandisers and fill in the gap in this sector. Known as third-party digital verification providers they offer proof of purchase solutions, identity verification, background checks and document authenticity checks. This provides a comprehensive and versatile package for e-commerce companies that they can choose from, keeping in mind the convenience of their customers.

What to Look for in a Digital ID Verification Service Provider?

Having mentioned the various benefits that a third-party KYC solution provider can offer. It is good to know what to look for before signing a contract with one, as not all identity verifiers are the same. When you start your search you will find many of them mentioning that their system is based on advanced AI and machine learning processes. That is all good, but then there are the ones that go beyond AI they include the human touch. Meaning all data that their AI verifies is revalidated by live people; this adds a double layer of checks and less chance of error.

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They say time is of the utmost important and could not hold more true for the modern day individual. People these days are used to having things done in minimum time and apprehensive of anything that takes too long. Keeping this in mind, the company that you choose must be able to carry out the verifications in the least amount of time. The best companies offer verifications in a matter of seconds and have an easy to use interface that is customer friendly. Another thing to look out for is that do they have an online verification mode. As most have offline ones, online allows you to give your customer freedom to get the verification done in real time using their webcam.  Also, they should be able to provide proof of verification service such as pics or even better if they can provide a video of the entire verification process. This is extremely useful in case of charge-backs, it will give you solid proof to dispute the case.

The last point, but one of the most important is to check if the KYC company is up to date with the latest developments in the industry. A good example is the upcoming GDPR policy that enforces the data privacy of all EU citizens. If you or the company you partner up with are not compliant with this policy, it can mean massive fines for all.