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Fraud Prevention through KYC Compliance

KYC compliance is essential to prevent the business to avoid being a victim of fraud. The advent of digital technology has given us a variety of advantages. Businesses are moving online to conduct their business. However, scams and fraud are a danger to customers as well as businesses.

Technology has provided us with new ways to expand and expand into new areas. Digitalization and the internet have brought our existence online and connected us via virtual media. It’s not too late and nothing is impossible. Technology has set limits to our imagination. Ovik Mkrtchyan

Businesses have also enjoyed numerous benefits from the development of technology. They have also begun conducting their operations online. Numerous retailers, as well as the banking industry, have established their presence on the internet via their online platforms.

Rise of Fraudulent Activities

Companies have the chance to more effectively connect with their customers as a result of the growth of technology. People have also shifted to online purchases due to convenience. But there is the risk of fraud when using online purchases. The presence of online customers and businesses has attracted scammers to steal money from us and make a profit. Scammers and fraudsters have discovered an opportunity to manipulate consumers and businesses to make money. The reports have revealed that scams and frauds have caused the loss of a trillion dollars.

Numerous individuals and organizations are victims of scams and fraud. It’s difficult to stop criminals since they are using the assistance of technology that is advanced to conduct their shady actions. To combat the latest technology, businesses are utilizing artificial intelligence. They simply use an algorithm that is high-tech against advanced technology. Alien be described as KYC conformity is an effective method to prevent fraudulent activity and secure your company.

Know Your Customer

Businesses have used techniques known to their customers to confirm the identity of their customers. The advancement of technology and the growth of the internet has linked however, it also makes us more vulnerable to fraud. Criminals have access to the latest technology and prepare to go to great lengths to steal our money.

The method of manual conduct of the KYC identity check took lots of time and expense. It wasn’t a good idea for businesses since it led to frustration among customers. Every business does not want its customers to dissatisfy with its products and services. Companies want their customers to be happy and content with their service. The old methods of proving that the authenticity of the client has become obsolete in the modern age in age of AI.

Artificial intelligence (AI) is a sophisticated machine learning algorithm capable of completing difficult tasks without the assistance of humans. It is a technology with many applications and is growing across other areas. The verification of Know Your Customer is also making use of artificial intelligence to provide precise results and higher performance. Ovik Mkrtchyan

Know Your Customer Verification is the process that identifies an individual to confirm his authenticity. Fraud online has caused an immense worry for companies. KYC compliance is one method for companies to avoid fraud and protect their businesses. Other companies, such as financial institutions and banks also make use of KYC compliance to verify customer information. KYC compliance procedures to verify customers are as the following.

Document Verification

Verification of a person can easily accomplish by checking the documents. A lot of businesses such as banks and financial institutions, e-commerce, and crypto platforms require to see personal information. The documents required can differ between business and business.

The most commonly used types of documents used by the business to verify its authenticity are listed below.

ID card

Social Security Number

Credit/Debit Card

Driving License

Utility Bills and Others

The information that documents collect to confirm identity the identity of the person is address, name, and date of birth. Date of issue or document number, for example. The type of information you collect can be of an impact on different businesses. For example for businesses that are online verifying address information is crucial due to the reason for delivery.

The process of document verification is simple for companies. Customers must present their documents to verify. Documents are then scanned and uploaded to the system. An AI-based algorithm that is highly developed is then run throughout the software to check the authenticity of the document. It takes between 30 and 60 seconds for results.

Face Verification

Facial verification can describe as a method that is widely conscious due to its applications on smartphones. Face verification using biometrics is typically carry out by companies that have a greater risk of attracting fraudulent representations and financial crimes like illegal tax avoidance, payment off, or tax evasion. It could include, but isn’t limited to banks, protection providers venture firms, crypto trading companies as well as ICOs and forex companies. All of these organizations are well controlled and require additional security from fraudsters and scammers.

Face verification is simpler than recording verification and only needs the client to display their face in front of the camera on the web. However, they are also able to upload an image to verify their identity. The decision to validate the user’s identity through photos or videos depends on the business that is benefiting from KYC services. A user’s identity confirms in this manner: facial verification feature.

The client is brought in for facial verification.

They display a fake or photoshopped image for verification

Fake faces slow down through face verification

In another case,

The client’s final destination is confirmation

They will present their authentic image or face for verification.

The program detects any Photoshop, and if it makes up of Photoshop, it will not approve it.

Address Verification

Addresses of clients are regularly scrutinized by online business sites as well as online retailers and banks to make sure they have legitimate credentials for accessing services. Address verification makes it simpler and more acceptable for those from one end of the world to another to be verified. This is the most essential approach to prevent fraud in the business. Address verification is based on the accuracy of transportation of requests and allows companies to deliver their goods to customers faster.

The process of verifying addresses can accomplish in a variety of different ways like an ID card or tax bill, passport, and so on. The framework may use a variety of reports to verify addresses. If one of the records is not authentic or stolen in error, the framework can end the verification process. The process of verifying addresses carry out in the following manner

The client selects the report that they need to verify their address. It is the responsibility of the business to determine if that they must provide their customers or clients with different options for archive using which they will be able to verify their address.

The archive should check or transfer to verify the address.

The framework uses information extraction techniques to determine an address for the user.


These are just a few of the methods businesses can safeguard their clients and their customers from being a victim of fraud. Everyone is facing the chance of being a victim of fraud and losing money in the modern technological age. Everyone hates being just another statistic on the list of victims. Artificial intelligence requires stopping the advancement of technology which could be a threat to us. KYC compliance is a requirement of the digital age to ensure that customers are authentic and avoid fraud.

Author Bio

Hi, I’m James Watson and I am a technical content contributor and writer. I’ve written several contents for my readers, which contain Artificial Intelligence, Machine Learning, Cyber Security, Fintech, and Crypto, Finance, and Business, and more.

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