The market for Digital Identity Solutions expected to double by 2024

The market for Digital Identity Solutions expected to double by 2024

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The market for Digital Identity Solutions is predicted to double between 2019 and 2024, as reported by MarketsandMarkets. The market will climb from $13.7 billion to $30.5 billion, displaying a Compound Annual Growth Rate (CAGR) of 17.3 percent. 

ThinkDigitalPartners also mentioned this in a recent tweet:

The firm attributed a major portion of the growth to the increasing demand for more efficient customer experiences. Digital identity solutions will be deployed more easily with technological innovations in the fields of AI, blockchain, and machine learning with an added range of settings.

Biometric solutions will inevitably be the fastest-growing type of verification solution by 2024 due to people’s preferences. They are expected to be placed in the retail and eCommerce industry during that time.

Currently, retailers have to regularly process a large number of financial transactions and they should also be able to effectively manage large supply chains. Biometric authentication can be used to facilitate the shopping experience for customers, reduce administrative costs and prevent fraud at the same time.

The largest market for digital identity technology will be North America, particularly due to the presence of some notable identity verification service providers. MarketsandMarkets has previously predicted that the overall security market will hit $373 billion by 2022 as companies search for new ways to protect their physical and digital assets.

Embedding online identity verification methods for enterprise security

Embedding online identity verification methods for enterprise security

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The internet knows a lot about us now. And businesses are using this information to verify our digital identities. However, not all of this information is correct or publicly available. As more and more activity finds its way online, identity checks are becoming relevant to the establishment of secure platforms for individual and business transactions. 

The risk of online fraud and ID theft is real, with a rising demand for online risk mitigation. Enterprises must look into variable security information platforms to enhance security solutions across the board. Trends in identity verification depict high levels of growth, with the value of the market to grow to US$4.4 billion by the year 2027. 

The introduction of AI tools have opened up online identity verification systems to offer faster data  processing, compilation and assessment solutions. Technology is making swift advancements in detecting anomalies and catching fraud. However, as a final check, human experts still manage to provide valuable supervision to machine algorithms for higher accuracy and verification of user data. 

Online Identity Verification Solutions for KYC, KYB and AML compliance

To verify if a user is actually who they say they are, real life identity verification for online applications employ a great deal of automation as well as data analytics to implement identity theft protection methods.

Here’s a list of some of the most successful and commonly used verification methods:

Biometric authentication through face verification and liveness detection

The use of biometric features for authentication involves the use of unique biological characteristics to verify end-users. Presenting face, fingerprint, iris, voice or other behavioural metrics to ensure their live presence is a highly convenient and secure way to authorise login. As use cases spread to a large number of consumer services including healthcare, travel, and retail, customers are looking for identity solutions that can easily be integrated into smartphones. Cost effective solutions such as taking a simple selfie or presenting a card to a camera are being accepted by large digital audiences. 

Through cross device authentication services, customers can use a hand-held device to capture a video or a selfie and confirm their presence. An automated procedure fast-tracks the process and authenticates account holders with high accuracy. Advanced Identity verification applications powered by machine learning are also recording verification processes in real-time and storing the data in the form of timestamps, videos, IP location and device information. 

Document Verification

Digital verification methods can replace manual checking of customer documents to prevent online theft and ID fraud. The more customer attributes that can be verified through a given ID source, the more robust the authentication. The end goal is to achieve a high level of verification assurance across multiple systems and countries. 

Customers can scan ID documents in front of a webcam and allow verification APIs to extract and screen key customer credentials. In most cases, the use of optical character recognition technology (OCR) assists in providing verifications for several documents in different languages. 

Document validation includes checking: 

  • Full name of end-user
  • Photoshopped/tampered documents
  • Document expiry
  • Document format type
  • Address format

Address Verification

The authenticity of individuals and businesses can be verified in real-time using automated software that cross-checks addresses with official databases. Users are asked to upload photos while holding identity documents in order to match their face. Secondary documents containing official address are uploaded to verify the information entered by the user. Analysis is done via an API and the verification is also recorded. 

For e-commerce and other retail business, this translates into better management of chargeback fraud and improved reputation. Mailing costs associated with returned mail can be mitigated and high quality address data maintained for faster delivery time. Identity documents such as national IDs, utility bills, bank statements, and driver’s license, are verified for authenticity, to improve customer risk profiling and online identity fraud management. 

AML Screening

Businesses must ensure a high level of safety by vetting both individual customers as well as businesses before beginning transactions. International regulations now require that sources that may be involved in money laundering and terrorist financing be actively avoided and screened before onboarding.

Detailed background checks and sanction list monitoring for high-risk clients is a given for AML compliance programs. Simply entering the name and date of birth can reveal useful information about authenticity. Data on customers and businesses must be screened against international regulatory watchlists, sanction lists and PEP lists to ensure compliance with laws and regulations. Risk reporting and global compliance is made easier with AML solutions for fraud prevention. 

Ongoing AML monitoring is an essential part of process, as regular monitoring of clients assures that no illegal activity is recorded in recurring transactions. This is to ensure that client credibility is maintained over time and high-risk clients are marked with an ‘on-alert’ status.

Companies can be validated using a registration number in order to identify blacklisted entities. Background checks of the Ultimate Beneficial Owners (UBOs) can help in identifying individuals with a suspicious profile. As a long term business goal, financial risk assessment is improved by limiting compliance fines and penalties leading to unanticipated financial loss. 

Knowledge based authentication

This method of online identification requires customers to protect sensitive information with security questions that can be answered using personally identifiable information.

It is an easy process to employ since it doesn’t contain complex passwords or codes to remember. However, it is also easier to breach since such information can be guessed, discovered or sold. There’s no verification with official customer IDs either. 

2FA Authentication

As an added layer of security, 2FA solidifies account protection by double checking the possession of sensitive information by clients. A physical token or a numerical SMS code must be immediately available to the customer through personally held devices to gain access to online accounts. 

Passwords are losing their authority as a security measure for fraud prevention. Hackers can breach accounts using weak or easy-to-guess passwords and gain malicious access through single layer security methods. Customers are advised to create long passwords with complex characters to lower the probability of a breach. This hurts customer experience and often makes the login process tedious. 

Authorised customer account access through two-step authentication method includes the following steps: 

  • End-user is sent a personalised, auto-generated code at each log-in attempt
  • Authentication code is required to enter the code at login
  • API matches code and completes user verification 

Two-step online identity verification services provide a way for companies to manage financial loss for end-user accounts without compromising customer experience. Malware activity and phishing attacks can be prevented by strengthening security laters.

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.

Cybercrimes Rise 5 times in 4 years and Continue to Soar!

Cybercrimes Rise 5 times in 4 years and Continue to Soar!

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 A rapid stride in the tech world over the years has increased cybercrimes immensely. According to a report, cybercriminal activities have clamped up 5 times in 4 years.  Since the usage of the internet is increasing with every passing day this internet connectivity has clamped up the volume and pace of cybercriminal activities. It is a challenging task to keep the pace up with new technologies, security trends, and threat intelligence. 

In order to protect information and other assets, it is necessary to take precautionary steps to avoid falling prey to cyber-attacks which are of many types. For instance, identity theft in order to gain sensitive information that is typically protected, credit card fraud, Ransomware which is demanding a payment to decrypt the locked computer or software, phishing in which fraudulent emails to steal sensitive data. Cybercrime in recent times has taken a curious turn with the character assassination of individuals and multi-crore frauds by lurking its way through popular social media platforms.

Cybercrimes- Calling out a set of Perils:

The use of cybersecurity can help prevent cybercrimes, data breaches, and identity theft and can aid in risk management. The protection of internet-connected systems, including hardware, software, and data from cyber-attacks is referred to as cybersecurity. Cybersecurity is a technique of protecting computers, networks, programs and data from unauthorized access or attacks that are aimed for exploitation. Protection of the usability, reliability, integrity, and safety of the network comes under network security. 

At the global level, the U.S. is taking giant strides forward in terms of implementing cybersecurity. In 2017, two cybercrime major incidents brought down government networks that sent an alarming signal. The need to implement reliable and impenetrable cybersecurity systems received an added push. 

Trends in CyberSecurity:


In the wake of the growing sophistication of cyber adversaries, the unprecedented volume of attacks and increasingly lethal IT security threats, coupled with stricter regulatory mandates, there is a pressing need to cope up with IT security more than ever in this new year. Here are some cybersecurity trends at a glance:


  • Tracking Shadow IT Inventory


Software programs and applications which are not approved by enterprise IT but still running on user devices will be more liable to exploit shadow IT resources. As businesses increasingly embrace software as a service (SaaS), norms are becoming somewhat lenient as users enjoy greater freedoms with their own devices. But it should not be happening by putting cybersecurity at the stake. In digital transformation, businesses will need to take steps for security and constantly monitor user access rights and permissions for any possible regulations.


  • User Awareness


Businesses need to keep their eyes peeled for any potential risk that can come from their own users. This may include potential harm arising from a sophisticated phishing scam or a user’s lack of awareness in fulfilling a mandate, resulting in data loss, identity theft, etc. Users are always the weakest link in the security chain of business. So it’s crucial to give user awareness training for cybersecurity. 

Just by the employment of next-gen security measures will not help in doing what’s necessary. There are a variety of incidents where users violate the security code of conduct. For example, logging into unsecured public networks, using work devices for personal transactions, downloading unapproved applications, etc. This needs to change.


  • Targeted Phishing Attacks:


Unsuspected users continue to fall prey to phishing attacks which are the most pervasive IT security threats. A study conducted toward the end of 2018 suggests that online phishing attacks were up 297% over the last year and 2019 shall see this trend booming. Comprehensive security awareness programs should be adopted by businesses. This may include investing in phishing simulators that explain various emerging patterns. This should help users identify suspicious phishing emails, ensuring they do not end up handing over the keys to the castle.


  • Operationalizing GDPR


Businesses should think of GDPR to increase IT security. As GDPR makes it necessary to appoint a dedicated data protection officer (DPO), operationalizing this compliance will require understanding several aspects of the law, such as how information privacy is protected and anchored in. It will help to determine if the up to date intelligence on the data processed is available. 


  • Cloud security:


Cybercriminals take aim at the cloud. An increasing number of databases are being hosted in the cloud, which is where software and systems are designed specifically to be deployed over a network. As more and more businesses migrate to the cloud, a new role of cloud migration security specialist will be a key part of large IT teams. Cloud hygiene will only grow in importance over the next 12 months, particularly in avoiding devastating data breaches. Many management and identity verification tools can be used in this regard.

How Can We Fight Cyber Crimes?


Fighting cybercrimes is everyone’s business in one way or the other. Following are some ways to protect yourselves against cyber-attacks:

Use Internet Security System


Use software that can provide real-time protection against existing malware including ransomware and trojan viruses. It will help protect your data when you go online.

Use Strong Passwords


Do not just add easy to guess traditional passwords. Always use a strong password and keep on changing the passwords after some time. Do not repeat the same password for different sites. 

Keep Software Updated


Always keep an updated version of the software. Cybercriminals use known exploits frequently to gain access to your software. Keeping updated software will make it less likely that you’ll become a cybercriminal target.

Guide your Children


Teach children about the use of the internet. Make sure they are comfortable sharing with you if they experience any sort of online harassment, stalking, or cyberbullying.

Take Measure to Protect Identity Theft


You can save your identity from falling into the wrong hands. Know that identity theft can happen anywhere so always be very cautious. It occurs to obtain your personal data in a way that involves deception mostly for economic gain. You might be tricked into giving personal information over the internet or cybercriminal can steal your mail to access account information. So guard your personal information by using VPN over new Wi-Fi connection and keeping your travel plans off social media. Protect your children as identity thieves mostly target children. 

Keep up to Date on Data Breaches


Just over the last decade, there have been over  2,550 data breaches with millions of records being affected and the nature of the stolen information makes them considerably more serious than most. One should always stay up to date by such cases so that he can protect himself against such incidents. This will help you find out which type of data was targeted by criminals so that you can protect them. 

Manage Your Social Media Accounts


Keep your private information well secure and locked down on social media sites. Just a few data points will be enough for social engineer cybercriminals to get your personal information. It the less you share publicly the better it is. 

Always Use a VPN


Whenever you are using any WI-Fi network at a public place it is a good practice to use since most of the time you are using your smartphone you should prioritize VPNs that are optimized for iPhones or other devices.

Become a Victim? Know what to do


If you believe you have fallen prey to cybercrime, you need to inform local police and in some cases FBI even if the crime seems minor. Your report may assist the authorities in their investigation or may help to thwart criminals from taking advantage of people’s personal data in the future. If cybercriminals have stolen your identity following are some steps you can take:

  • Report the crime to FTC
  • Get your credit reports and place fraud alerts
  • Contact financial institutes or companies where the fraud occurred. 

As technology is advancing, it is important for every organization to identify the real problem i.e. lack awareness related to cyber intelligence and crime could potentially inflict a heavy loss. One should be aware of how to protect himself against these crimes and where to report if he gets trapped in. In a nutshell, cybercriminals are becoming more discrete and to identify the breach in security needs to be identified and dealt with high urgency to avoid identity theft and data breaches. 

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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Document Verification Services for a Secure Freelance Platform

Document Verification Services for a Secure Freelance Platform

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Picture this you have recently started a freelance website you have marketed it properly and followed through on all steps to make it popular. It’s going good, you have a decent number of people posting projects and a decent number of freelancers who are able to complete them. You really haven’t had any problems, you are the middle man and you just take a small commission from both the project owner and the freelancer. The entire system is automated so you really don’t have to do a lot. Then something like this happens — you see a chargeback and its for quite an amount. You search out what the issue is and find that a freelancer has not completed his task and has also taken some amount in advance. You try contacting the freelancer to get an update but the number is turned off and you haven’t received responses to your email. You take it as a one off and refund the project owner and don’t really take any action except for disabling the freelancers account. Guess what a few weeks later you get multiple chargebacks, all for the reason that the work had not been completed. All of the freelancers had taken an amount in advance. You are worried now, the previous project owner who requested the chargeback was quite angry and did not post any other projects. You also tried contacting the freelancers but as before there was no response. Your website is getting a bad repute online and the number of tasks being posted has declined. You think about stopping the advance payment option, but argue the fact that good resources as well as certain tasks require some amount in advance and plus you made your entire marketing campaign around this. You frantically search the web for a solution, you come across an article called “ Document Verification for a Secure Freelance Platform” You start reading it and as you go through it you realise what’s been happening with your website is freelance fraud. With tears of joy in your eyes you know your prayer’s have been answered and you say to yourself “I have found the solution to my problems…“

Deterring Freelance Fraud with Document Verification

Although the above paragraph is about a hypothetical situation but still the threat is very much real, it is something that can and has happened in one form or another. So the question arises how can one prevent such a fraud from ever occurring? To answer that we need to see what was the cause for the freelance fraud in the first place. In the hypothetical case above the freelancer site probably had a registration process that a freelancer was required to fill out plus they have to make a profile detailing their expertise. That is pretty standard but there is no way to verify that the person claiming to be that freelancer is actually them, no document verification to ensure their credentials are true and real. Given that in this platform the freelancer was allowed to take something in advance it set the stage for someone to exploit this feature. The person or people involved in this fraud probably created false identities knowing that there is no check and uploaded impressive credentials and mentioned great skills. The idea itself was great and would likely attract the best of the best to apply as freelancers. This in turn would attract people or organisations who wish to get their tasks done by highly-skilled workers. The only drawback was, it was not thought through properly and did not have a deterrent to avoid this kind of fraud. The deterrent in this case could have been a 3rd-party digital KYC or an identity verification service — something that could verify the credentials and documents to prove that the freelancer is truly who they say they are.  Later in the article we’ll look at a solution and the features such a solution have.

Freelance Scam – Another Situation

Before we go on and discuss the solution to this problem it would be good to mention the same could also work to prevent another type of Freelance Scam. This would be the opposite of what happened in the hypothetical situation above, it could be quite possible that the platform itself that is providing the freelance service turns out to be a scam. This would not only affect the freelancer but also the company or individual providing the projects. Supposing that the freelance service offers an escrow meaning they keep the money until the task is completed. What if they in the end after getting all the money do a disappearing act similar to the one’s that ICOs are pulling off? What would be something that would prove that they are the real deal and not some scam? The answer is that they probably would have invested in some third party service that ensures they are compliant with KYC rules and regulations and that they are serious about who’s joining up with them. In an absence of sound Document Verification mechanism; your platform is always at risk.

So is Document Verification by a Third-Party the Answer?

The answer is a big YES, the fact that nothing adds credibility to one business or in this case freelance platform is the investment they put in to it; it shows the company is against freelance scams. Not only that but since everyone who is on boarding as a freelancer is verified through their documents. The documents are sent over to the third-party verifier and checked for signs of tampering and forgery. Their pictures are matched with those on their ID cards and checked for irregularities. The great part is that verifications can be done live using a webcam or by submission documents. The whole process takes less than a minute. So they know if they try to pull a fast one they can be highlighted and criminally prosecuted as well.  This is one of the most effective deterrents of freelance fraud.

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Know Your Customer Verification for Charity Organisations

Know Your Customer Verification for Charity Organisations

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They say no good deed goes unpunished, if we were to take a look at it literally the frauds that happen to legit charity organisations are the perfect example. It is hard to believe that scammers would do such a thing, but sadly it does happen. As is with most charity organisations they don’t think that someone would do such a thing with them, but the truth is far from it. Besides the threat of fraud, charities also need to be aware of individuals or companies that might use the platform of the charity organisation to launder money.

 In this blog we will look at the warning signs that charities need to be aware of and what role Know Your Customer Verification (KYC) can play in protecting these organisations from fraud. We will also look at how charity organisations can prove themselves credible. Fraud prevention is not just limited to charity organisations as the opposite is also a concern, where the hard earned money of good people is swindled by fake charities.

If you are a charity organization looking for ID verification you’ve come to the right place. Apply now for free ID verifications.

Volunteer fraud in a crisis situation 

Volunteers are one of the primary sources of fraud. Especially when organizations have to hire numerous volunteers in a crisis situation. The risk of onboarding thieves/criminals using fake identities is high. Especially when it comes to handling funds and performing door to door operations. Often fraudsters onboard a charity organization and utilize its name to manipulate funds or loot the people in the door to door relief activities. 

This fraud causes monetary and credibility loss for the charity organization. In-depth identity screening of volunteers is necessary.

So How Do Donors Cheat a Charity Organisation?

There are two main ways that charity organisations are cheated by fraudulent donors. Although there are other ways as well. Also fraudsters are always concocting a new way cheat people an organisations. The first one involves the use of a fraudulent check. In it a donor reaches out to a charity organisation and shows their willingness to donate a large sum of money. After the initial contact the donor mails in the check for the large amount. After a very short time, the donor contacts the charity requesting a full or partial refund of the donated amount. The reason that is given is usually a very severe or emotional one, such as expense for a sick person or other emergency case. If the charity in concern refunds the amount before the bank gets back to them regarding the fake check, the charity is at loss. They will also be responsible for any bank related fees and charges.

The second way fraud is done against charities is through the use of credit cards. A donor approaches a charity organisation and requests to donate a large sum of money but with a condition. The condition being that a percentage of the amount will be donated to another foreign charity organisation. The foreign bank account of this charity organisation is actually the account of the donor. If the charity accepts the condition then they going to lose a lot. As in this case, the credit card used to make the transaction is usually stolen. The charity will solely be responsible for any chargebacks and it will have unintentionally partaken in a money laundering scheme.

Money is a powerful motivational factor and seeing a lucrative amount charities like other organisations are tempted to accept weird conditions. If only a simple identity verification service had been used; it could have thwarted these attempts. We’ll elaborate how later in the article.

So What Should Charity Organisations Look out For?

  • Large one-off amounts or a number of smaller amounts that are donated and no source can be checked by the charity.
  • Conditions where the charity is required to do something such as transferring of a certain amount to another charity.
  • If the charity is asked to keep a large amount/donation for a specified time period. After the short period the amount is to be returned to the donar. Usually charities find the attraction of keeping any interest that is earned while they are in hold of the money.
  • If the donation being made is in a foreign currency and there are conditions attached with the donation that the original sum is to be returned to the donor in a different currency.
  • if the charity is asked to provide privileged services and benefits to the donor and or a person or organisation nominated by the donor.

So how do Know Your Customer and Other Identity Verification Services help fraud prevention for Charity Organisations?

As mentioned previously a simple identity verification can thwart most fraud attempts. The simple fact is that when all credentials are verified and a proof of identity is asked to confirm that the donor is actually who they say they are. Most fraudsters back off out of fear of being caught. This verification is an integral part of the Know Your Customer policy that financial institutions such as banks follow. Some charity organisations argue that the system is workable for walk-in donors and not for their online donation platform, hence, it is not an effective fraud prevention process. The truth is far from it; there are 3rd party platforms that allow for online verification. The software can easily be integrated with any existing system. Using the webcam or even the smartphone camera of the donor the system can verify the authenticity of documents that are used to prove identity. It includes face matching and checks for any tampering and forgery. If something negative is detected the charity will know about it immediately. At the heart of the system is an advance AI that carries out the checks and then the result is reverified by Human Intelligence, whereby people check for any false positives. The entire process takes less than a minute.

Great! But how does Identity Verification or Know Your Service add Credibility to a Charity Organisation?

Good question, as we discussed the opposite is also true that there are fake charities that swindle good people out of their money. In fact this type of fraud is also quite high, charities collect the money and then pull a disappearing act. They are never heard from again and the cause for which they collected is never addressed. So people are also look out for warning signs regarding charity scams.

One thing that is common with charity scams is that they really don’t care where the money is coming from. They just want the money without concern for the source and would not definitely think about investing money in a verification solution. When a charity comes along with a 3rd-party Know Your Customer service it immediately tells the donor that this charity is serious about their donors and the money they are getting. Plus the simple fact that a charity is spending from its pocket to ensure compliance with Know Your Customer rules and for fraud prevention shows that it is there for the long haul.

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Digital KYC Streamlines Customer On-boarding Process

Digital KYC Streamlines Customer On-boarding Process

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Shufti Pro brings forth digital KYC verification services to perform identity verification processes in order to bring the customers on-board. We understand that it is not only a hassle for your customer, but for you (our client) too.

Why conventions need to change?

Quick and secure identity verification service has rendered the traditional practices obsolete, where customers had to go through lengthy processes, fill out numerous forms, and wait in line for hours just to comply with the KYC requirements. The results of their verification would be processed over weeks, delaying the on-boarding process further. Customer on-boarding process is not only essential for financial institutions like banks, investment firms, insurance agencies, real-estate agencies, etc., but also for online businesses and merchants. The online businesses cannot afford to carry out such thorough documentation just to bring a customer on-board. They make use of knowledge-based verification, which is in no way enough information to verify the identity of a person. Those questions have highly predictable answers. Much higher complexity in security procedures would be required to keep the scammers out. They need a quicker, smarter and automated solution or else face the fraudsters.

Moreover, many of the customers work full-time jobs, and the timings coincide with the working hours of the banks/firms. It is not possible for customers to take that long a leave from their work just to stand in lines for the submission of their KYC documents. Also, paper-based KYC uses up valuable resources that could be put to better use.

What is the Optimal solution for change?

The most optimal solution for change is to integrate a digital KYC solution that verifies the identity of a customer in real-time. Shufti Pro is one of the best SaaS available as a fraud detection software. It allows for quick and real-time ID checks online, using artificial and human intelligence. Stats have shown that e-KYC reduces the customer on-boarding time by 90%. The process becomes much faster, efficient and accurate as the customer identity verification time reduces to 30 seconds. Now online businesses and financial institutions can verify the customers easily; the latter just have to show their face and identity documents to the camera and their identity would be verified. There would be no need to stand in line for hours and submit volumes of documents.

Fast and accurate on-boarding process through digital identity verification will result in a seamless customer experience, reduced hassle for the customers as well as the online businesses/merchants and financial institutions.

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Demand for KYC & ID Verification in Higher Education

Demand for KYC & ID Verification in Higher Education

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I remember a friend of mine, Jack, from high school he was one of the most non-serious people I knew when it came to his education or studying for that matter. He had barely graduated, getting minimum marks in almost all subjects except art. Back when we were preparing for our A-Level examinations to get ready for college, he was thinking about having another person sit in his place for the exams. He said there was this person he knew that offered to sit the examinations in his place for a $1000 and said that he would get him a score in the upper percentile. He said he would take care of the ID as well; it will have his picture instead of Jack’s, but it would still have Jack’s name. He said they really don’t do an extensive ID Verification. He also offered services for passing entrance examinations of education institutes. The big day came and Jack was nowhere to be seen. A couple of months later I saw Jack jumping around, he brought over his result and it was exceptional and I asked him if he actually got this score or some else? He told me that of course he (Jack) did it and I was like yeah right. He never told me or confirmed if he had hired that person to be in his place. I told him that he wasn’t present there, he told me he had been assigned a different venue. Whether he actually cheated or not, he got in his preferred college and took up majors in Art. That I believe was the right choice for him…

Although the incident above can be considered a story it is based on true events. In fact a similar incident is documented from 2011 – CBSN (2011), Allison Stewart reported in her story, The Perfect News, that Sam Eshaghoff took the SATs for students, who paid him around $2500 each, to ace the examination in their place. He used fake IDs to appear in the test each time. In 2011, he was charged with fraud and criminal impersonation.

In another although fictional story 3 Idiots is a movie that is based on a real person; it depicts how one student was asked to take on the identity of another person since he was not that good in studies. Due to whatever circumstances who took on the identity of another individual and got an education while the engineering degree that he earned was in somebody’s else’s name. This also supposedly happened in one of the best universities of the nation.

Why ID Verification is Getting Essential for Educational Institutes?

The problem is that as competition increases more and more students might be tempted to take the easy way out. Searching for loopholes or laps in verification checks within education institutes they could succeed in such instances as the one mentioned above. That would be unfair to the students who worked hard for their own results. That is where the KYC (know your customer) process can prove invaluable. As universities and colleges begin to offer online courses this has become even more essential that before taking an examination the prospective candidate go through an e-KYC process that would include ID verification.

What Makes the KYC Process so Effective?

As mentioned in the previous paragraph the online examinations are becoming more common and in order to deter any sort of fraud or cheating an online KYC or e-KYC system proves invaluable. This system is usually offered by 3rd parties and is based on a highly advanced AI system that sometimes has an extra check done by HI (Human Intelligence) to ensure that everything is correct. The system uses the webcam or the smartphone camera of the candidate and asks them before the examination starts to verify their identity. They ask the individual to face the camera and then show the examination slip (if given) and their ID card. The system then matches the details mentioned in the slip with those on the ID Card and those already fed into the system. It can check for tampering with documents and also highlight forgeries. It also checks the face of the candidate to see if it matches the picture they have on file. The system is smart enough to take into account glasses, facial hair, etc. Once the ID verification is done the individual can proceed with the examination provided there were no discrepancies. The webcam ensures that there is no switch of people  afterwards.

What to Look for in a Good ID Verification System?

Having mentioned how digital KYC can help educational institutes deter cheating. It would be wise to discuss which aspects one should look for when deciding on getting a digital verification system on board. The first thing to look for is speed and ease of use. The process shouldn’t be too difficult to understand or take too long. The best companies have verification times in the seconds. Another thing is that most of the providers are powered by an advanced AI that does automated checks of the documents as well as picture and face matching. The good ones offer a hybrid system that adds HI to the AI. Live people check the results that the AI has given to make sure everything is in order.  One of the most important things to look for is if the company providing the verification system is aware and up-to-date with the latest industry requirements. As partnering with non-compliant companies can result in heavy fines and other penalties. An example is the GDPR policy for companies and institutions that are handling the information of European residents/citizens.

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Enhance Time Efficiency with Shufti Pro’s KYC Solution

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The Past

Quick and secure e-KYC verification might not have been of importance in the days prior to this digital world as cyber security wasn’t much of an issue and customers were verified manually. They had to stand in long queues to wait for the person behind a desk to match their charming photo ID with their charming face, and that was the end of it. Then you had to wait for a few days until the results of your consumers’ KYC were posted so that you could go ahead and start taking them on board.

The present

Now, with most transactions happening online and businesses/merchants entering the global virtual marketplace, waiting for hours in line and then days to get the results back, is simply not acceptable. The nature of today’s business doesn’t allow for it. Shufti Pro provides digital identity verification services to these online businesses, and helps them to perform  KYC verification online in a matter of 30 seconds. Easing the lives of hundreds of clients as well as their customers, we have introduced a quick, real-time identity verification application that integrates with your mobile devices or PCs and helps you to carry out secure online transactions within seconds.

Shufti Pro allows for secure online identity checks that aid in fraud prevention and provides the best identity theft protection services to online businesses and merchants. It requires the user to simply present their face and legal documents to the camera while our artificial and human intelligence algorithms process the confirmation of their identity.

The Future

Expanding global companies can grow at a much faster rate by reducing the on-boarding time to the minimum. They can use Shufti Pro to make the process much faster and more efficient by performing ID checks online. It is a simple, hassle-free process, and easily accessible by their customers. The reduced time and cost, plus increased performance is a massive saving and a boost for company-growth. You (our clients) can continue to enhance and grow your business with the peace of mind of knowing that any attempts by fraudulent users will be thwarted, while we also provide you with what you need in the e-KYC and AML compliant milieu, bereft of any security concerns.

Shufti Pro operates globally in over 200 countries and supports over 150 languages. It can definitely serve as a guardian at your door, regardless of where you’re located in the world.

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Fraud Prevention in Fintech Industry

Fraud Prevention in Fintech Industry

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The FinTech industry has really made its mark in the last couple of years. FinTechs have been providing financial institutions such as banks, insurance companies, brokerages, etc., technology to ensure efficient and accurate handling and management of their financial aspects. These have been in the form of new softwares, applications, business models and processes. The integration of FinTech has led to the launching of products that challenge traditional finance – PayPal, Apple Pay, Google Wallet, BlockChain Cryptos, etc. They have literally changed the way money is handled, over the Internet or otherwise, and how payments are made. From physical money we are going to digital because of FinTech. As more and more individuals rely on FinTech for the management of their money and less on physical cash, fraud prevention has become essential. The scammers, thieves and thugs of the streets are also turning their interest on how to carry out their business in the world of FinTech. Besides these guys, the underworld and the corrupt politicians of the world are also looking in on how they can utilise these emerging technologies to launder their money. The need for background checks and other AML (Anti-money Laundering) solutions couldn’t be a more urgent requirement in the world of FinTech.

What are the Fraud Prevention Ways?

Although there can be many ways to ensure fraud prevention the simplest ones are usually the best and most cost efficient. Banks and financial institutions have been relying on a process called Know Your Customer (KYC) for quite sometime; it is something that they have to ensure compliance with. Through a simple question answer session where they ask for such simple things as Name, DOB, Address, etc., to sources of income, dependents, assets, etc, they get all the information they need. Then the individual is required to submit documents that prove their identity as well as documents that prove the information they have given is correct. Based on the given information and documents, background checks (to ensure AML compliance) are carried out to make sure the person is not a criminal or not involved in any money laundering activity. Only after clearing all the verifications is the person allowed to open an account or get approved for a loan, etc. This still happens today, but given the Internet and all the improvements in technology the time frame for these has reduced drastically and the process has also been made easier.

FinTech products are mainly digital and online, so one would think how can verifications be done properly and quickly? The answer is third party KYC services that allow FinTechs to gather and verify information at the same time get background results for AML purposes.

How KYC Services Work to Enhance Fraud Prevention?

KYC Services rely on advanced AI, a webcam or a smartphone camera, to carry out all the tasks that were previously mentioned. For example an online payment processor similar to PayPal would partner up with an ID verification provider. Then during the time a user was filling in the registration form, the verification system would take over. It would ask the individual to face his webcam for verification. If there is no webcam it would allow the person to use their smartphone selfie camera. After that it would ask for ID, such as Passport, ID card, Driving License, etc., then it would ask the person to focus in on the picture, DOB, number (if applicable). The advanced AI would then match the picture with the appearance of the individual. Checking for signs of extreme makeup, or any attempt to hide or alter the face. The AI is smart enough to distinguish change due to facial hair, hair styles, glasses, jewellery, etc. At the same time the system checks thousands of Global Watchlists to check if the individual is under suspicion or involved in any money laundering activity. All of this activity is done in real time, is recorded and completed in under a minute. The KYC Services would decline any individual using a fake identity or stolen identity. The same way the background check would support AML, highlight the individual and decline them.

What to look for in a KYC Services Provider?

Having mentioned how KYC can enhance fraud prevention, it is good to know what to look for when searching for a verification service provider. One of the most important things to look for is if the company providing the verification system is aware and up-to-date with the latest industry requirements. As partnering with non-compliant companies can result in heavy fines and other penalties. An example is the GDPR policy for companies and institutions that are handling the information of European residents/citizens. Second comes speed and ease of use. If the process is too complicated and time consuming it could cause legit people to avoid it. Companies that provide such services are good have verification times that are less than a minute. Although almost all service providers use an AI to carry out the verifications, the better ones offer HI (Human Intelligence) along with the AI. Once the verdict is given by the AI it is verified by live people to ensure there are no false positives. Last but not least, the more services a KYC services provider offers usually the more value for money you get. So besides live KYC, some offer offline KYC services and AML services; in this the individual has the option to submit document for verification instead of showing on camera.

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Fraud Prevention in Real Estate Industry

Fraud Prevention in Real Estate Industry

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Fraud prevention tools that include3rd-party KYC service providers are essential in the real estate industry to elaborate what we mean. Please imagine this: you’re living cosily in your house. You’ve had it for quite some time. You bought it using the money that you received in your inheritance. It has a decent market value and you’re fortunate to not have any mortgages or loans to pay. One day you get up and you go out to check your mail. There is a mail for you from a real estate company that you have never heard of. You open it up thinking it must be an ad or something, but it’s actually a letter addressed to you. As you read through it you get a serious expression on your face and your heart starts to race. You think this has to be some mistake or a misunderstanding. You call the real estate company and ask to speak to the person mentioned in the letter. You tell him your name and he tells you that you have missed out on your mortgage payment for the first month. You tell him that you never applied for any such mortgage on your property. He says you signed the agreements and everything. You tell him that you would like to meet up and he agrees and you go to the address mentioned on the letter. When you reach the place you ask the secretary to direct you to the person whom you spoke with. You enter in his office and the person sitting behind the desk inquires as to how he can help you? You tell him your name,  and tell him you spoke on the phone with him. He suddenly loses the smile on his face and with a serious look inquires if this is a joke. You tell him that you almost fainted when you saw the letter. He says the man he processed the mortgage for was younger and a totally different person. You show him your ID and then he is the one who looks like he is going to faint. You have just become a victim of title fraud, you wonder why didn’t the real estate company do any background checks.

Luckily you have title insurance, although you never thought it would be required…

Another reason for the checks is that the real estate industry is a very lucrative and high equity business. This fact is something that in itself attracts a lot of people to invest in it. Sometimes not all the investor are good. Some plan to launder their money for use in criminal activities or even terrorism. Hence, AML/CFT (Anti-money Laundering/Combating Finance of Terrorism) compliance is imperative.

Are KYC Service Providers the Ideal Fraud Prevention Tool?

The incident above is a plausible scenario and a KYC process including a thorough background check would’ve actually stopped this from happening in the first place. These days real estate agents and companies can hire third party KYC service providers to help with their verification needs. These 3rd-party services providers use advanced AI that not only simplifies the entire process but also makes it extremely fast. The SaaS software integrates with almost all systems. The AI uses the power of the Internet, a webcam or a smartphone camera to carry out its KYC procedure. Let us explain using the fraud scenario mentioned above. When a client comes in for a mortgage they are asked to fill in an online form. Once the form is filled the KYC provider SaaS software kicks in and informs the customer of the process and also that the session will be recorded. Then it asks the individual to face the camera or, if one is not available, sends a link on their smartphone so that they can use their selfie cam. The AI checks for anything that would alter their face or hide it, such as excessive makeup, a mask, or using of a picture instead of showing their live face. The system is advanced enough to account for facial hair, glasses, jewellery and hair cuts. After that the system asks the person to show their ID on the camera and asks them to focus on their picture, name, DOB, and number (if applicable). The AI then matches the picture with the face and checks for signs of tampering or forgery on the ID. During this time the AI also carries out a background check. It searches global watchlists for finding any mention of fraud, money laundering or any links with terrorist organisations; thus ensuring compliance with AML/CFT rules and regulations. If everything checks out  then the system gives the go-ahead for the processing of the mortgage request. All these properties make KYC service providers an effective and efficient fraud prevention tool.

What to Look for in a Good Fraud Protection Tool?

Not all KYC service providers are the same, so we’re mentioning somethings that will make it easy for you to search out a good fraud prevention tool.

The most important  point is to make sure that the company you are selecting is compliant with all rules and regulations in the industry as lack of compliance can result in heavy fines for the company as well as the real estate business. The other important factors is speed. As people get tend to pass on long and time consuming processes that are complicated. Keeping this issue in mind, most good companies do verifications in seconds and provide easy-to-follow instructions. The background checks the system carries out is done simultaneously so it is also processed within the same time frame.

Almost all KYC service providers offer advanced AI solutions, but the good ones offer an adder layer of verification which is done by HI (people). Once the AI gives a verdict it is verified by live people to ensure there are no false positives. The entire process is completed in less than a minute.

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GOLDMINT® turns towards Shufti Pro® for Investors’ Verification

GOLDMINT® turns towards Shufti Pro® for Investors’ Verification

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The call for e-KYC, authenticating them, and securing their payment processes led to the Startup’s collaboration with the emerging expert in online identity verification milieu

BATH, UNITED KINGDOM, November 10, 2017 – Shufti Pro Limited®, the world’s rapidly growing company in the digital KYC sphere, announced today that GOLDMINT Ltd.®, a startup ICO expediting towards success, has decided to adopt their state-of-the-art online identity and document verification services for reduced on-boarding time and enhanced security.

GOLDMINT Ltd.® took up Shufti Pro Limited’s® services this month. Currently enjoying the secure payment processes, the startup venture gives its users an opportunity to buy tokens (GOLD) using Fiat money. With online identity verification services integrated in their transaction platforms, the customers develop a sense of safety, authority and trust about their host organisation.

Shufti Pro Limited® aids GOLDMINT Ltd.® in performing KYC online verification so the users are verified through their identity documents. This helps GOLDMINT Ltd.® validate their customers and prevent identity frauds. A user attempting to invest in the venture will have to show their face, followed by their identity document to the camera. If not stolen or counterfeit, their documents would be verified through this quick, real-time process. They are now able to stamp out scammers with Shufti Pro Limited’s® state-of-the-art ID checks online . It will streamline the customer on-boarding process, reducing its time by 90%.

CEO, Shufti Pro Limited® said:

It gives us great pleasure to be able to secure a part of online marketplace in our collaboration with GOLDMINT Ltd.®. Our ultimate goal is to support online businesses in enhancing their cyber defence strategies, eradicating or at least considerably reducing customers’ hesitation when it comes to submitting their sensitive information on such trading forums. We’re very glad to be in business with them and hope for this to turn into a thriving, long lasting and successful affiliation in the future.”

CEO, GOLDMINT Ltd.®, Dmitry Pluschevsky comments:

Cooperation with Shufti Pro will allow GoldMint to adhere to its main principle: to comply with the legislation of the country in which the company operates.We opened an office in Estonia (EU) to work with the demand for GOLD tokens in the euro area. Local legislation involves the verification of users (KYC) with a turnover of more than 1000 euros per month. Shufti Pro will provide such verification for GoldMint. This is important for our company as we are confident that the GOLD will generate considerable interest among many large buyers.

At the same time, user verification is another proof that blockchain technology can be used in legal and large businesses. We are sure that cooperation of GoldMint and Shufti Pro will contribute to the process of adaptation of new technology by traditional companies.”

This step would urge similar companies to opt for the best online fraud prevention tools and secure their online businesses by preventing huge chargebacks and losses to their venture. Shufti Pro Limited® helps GOLDMINT Ltd.® save time, resources and costs that would otherwise be an added burden on their budget, hence, maximising their profits and minimising frauds.

Secure Online Gaming with Digital KYC

Secure Online Gaming with Digital KYC

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Here is a scenario that shows the importance of having a digital KYC system integrated with your business especially when you are dealing with money in one way or another. People might think that a business such as online gaming site does not need such a solution

The Drug Dealer:

Ok here’s a situation, you’re a drug dealer and you have just delivered shipment as per agreement with your business partner in another city. You had already taken half of the amount when the deal went through and your business partner brought the amount with him. Now you want to get the remaining money but in a way that will be inconspicuous. As you don’t want to be caught in a money laundering case as it will open up the way for the law to pick up on the rest of your dealings. So what do you do? You’re trying to come with an easy way. To get inspiration you surf the Internet as you are reading an article a pop-up appears — its an ad for an online casino. Suddenly the light bulb in your head turns on and you call your business partner and ask him to a one-on-one blackjack game…

The Online Casino Owner:

The other side… You have always found luck to be on your side, you lived for betting and gambling was your career. After gaining much success you decided to open up your own Casino, but not a physical but an online one. Here you would offer multiple online games for the people keeping your percentage you also offered one-on-one games. Everyday was a good day since the house is mostly in a win-win situation. All seems good until one day the FBI walks into your office and straight up to and tells you that they need access to your player data… Seems your luck ran out.

The FBI:

The FBI’s story, one of our agents was working undercover with a drug dealer during background checks we found out that he had connections with some terrorist organisations. He recently received a shipment of drugs and forwarded them. We don’t know exactly how he is transferring the payments until now, our agent found out that he loves gambling and accesses a site, through which he gambles with his business partners. They have tracked down the location and our agents are on the way to get the required data…

The Consequences:

The online casino owner got in a lot of trouble he did not have any digital KYC system integrated into his online gaming service but since he cooperated the penalty was lessened. The drug dealer and his associates were shut down and brought to the law and luckily were stopped before they could initiate any terrorist funding.

The Importance of Digital KYC and Background Checks

As we can see in the story above, had the casino owner implemented a KYC and AML (Anti Money Laundering) solution it would have saved him a lot of trouble. The system would have carried out comprehensive background checks identifying possible threats and allowing the owner to take action accordingly. The online gaming industry is a hotspot for money laundering although there are certain policies governing the industry the chance is still there that it could be used for terrorist funding.

More Scenarios Highlighting the Importance of Digital KYC

Identity theft protection has become a necessary requirement for the online gaming industry. Many a times, players are invited to buy add-ons and perks in the online games, for which they are required to make payment using credit/debit cards. This means that validation of online transactions is in order through digital KYC verification of the players who wish to make purchases.

Fraud protection services must be employed by online gaming companies so losses through identity frauds and sham customers looking to dupe their way through the purchases are kept to the minimum. Gaming sites may also run into problems such as registration of underage individuals, which can become a headache when the regulatory authorities investigate the company’s proceedings and customers. Background checks are the way to go when it comes to solving problems like fake ages and cards.

The online gaming industry is evolving rapidly around the world and expanding with each passing day. Gaming sites have improved tremendously in terms of user experience and now, they can make it more secure by enhancing the membership security protocols. Providing different gaming sites the ease of accurate digital ID verification will increase their revenue manifold.

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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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EPP System® partners with Shufti Pro® for Fraud Protection Services

EPP System® partners with Shufti Pro® for Fraud Protection Services

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Need for digital KYC has compelled one of the pioneers in the payment processing industry to join hands with Shufti Pro® for an improved credibility experience through their online identity verification services

BATH, United Kingdom – October 2017 – Shufti Pro®, the Software as a Service, has partnered with EPP System® to provide more authentic and seamless credit card fraud prevention services . They aim to verify new customers at every carrier level between bank-to-bank payment transfer. Banks provide a budget to the PSPs, which then equally distribute the budget between their many retailers. Those retailers then provide services to the merchants, completing the chain.

EPP System works to endow their customers with safe and secure monetary transactions between banks. They have opted Shufti Pro’s e-KYC services to integrate at each carrier level mentioned above. Every step will be separately checked for fraudulent consumers so no discrepancy occurs, disrupting the transfer processes.

CEO, Shufti Pro® said:

“Our goal is to provide Electronic Payment Services to our rather sizeable number of customers. Opting for Shufti Pro’s digital ID verification services has allowed us realise our aim in a secure, accurate and efficient manner. We’re extremely proud to present them with quick KYC online verification services so they can enjoy the fast and effective experience seamlessly.”

Shufti Pro aims to make the digital markets secure through ID checks online, so all high-risk transactions can be performed without the added apprehension of fraudsters and swindle connections. The rising star in the Mastercard theft protection and Visa card fraud prevention aims to get established as a symbol of the clients’ go-to service when in need. The successful integration of artificial and human intelligence has not only raised security protocols’ standards, rather have managed to attract more traffic to the SaaS owing to greater client satisfaction. Likely, Shufti Pro’s days in the sun have just begun now that they have EPP Systems as their on-board clients.