5 Places Where You Can Find KYC Verification Process

With fraud rates on the rise, it is essential for all businesses to secure their systems by installing a KYC verification service. Using that, you can be sure that you have a secure client base, reducing your chances of succumbing to frauds and hence, financial risks. There are a number of places where KYC softwares are in use, primarily securing the businesses through identity verification and anti-money laundering services. Keep reading to find out what the major ones are!

Online Shopping Sites

All of us must have shopped online at one point or another. Considering the shift towards online shopping and e-markets, it is essential that these virtual marketplaces are made secure against identity theft, stolen credit/debit card details and laundered money. To do this, it is essential to have an identity verification service in place so you, being the business owner, can know that the person performing the transaction is who they say they are. Performing KYC and AML checks will ensure that your user has not been involved in any criminal activities in the past, so it’s safe to let their transactions go through.

KYC Verification in Banks

Banking industry is definitely a high security zone, requiring state of the art security procedures. Customer signup processes and high-risk transactions (i.e. those over a certain limit, say, USD 15,000), are the focal points where KYC verification is a must. When it comes to banking, it is necessary for banks to know their clients and see if they are present on any watch lists, sanctions lists or if they are PEPs. If that is the case, the bank may choose to not entertain the client. Having KYC software can help banks secure their financial assets and client base, mitigate risk and monitor risky transactions effectively.

Cryptocurrency Trading Platforms

Crypto trading platforms, whether P2P, decentralized or fiat to crypto, all need to have a way to ensure that the buyers and sellers are verified. Since, crypto transactions cannot be reversed, the risk of money falling in the wrong hands is very high, with no way to get it back. When associated risks are high, it is better to know the identity of the person with whom you are exchanging money. Using KYC services, a person’s AML screening and identity verification can help ascertain their trustworthiness and legitimacy, ultimately, lowering the risks to your finances.

Healthcare Facilities

Hospitals and other healthcare facilities require health insurance documents in order to cater to the needs and expenses of a patient’s treatment. Unfortunately, there is an abundance of insurance frauds and identity theft when it comes to availing healthcare facilities. Those with no health insurance may use someone else’s in the time of need. As unfair as it is, it is equally a crime. In order to fight off these crimes, verifying the identity of the patient, before accepting their payment, is essential. KYC Verification allows the institution to uphold the integrity of the system, securing rightful use of insurance money.

E-bookings and Reservations

Chargeback frauds occur when card or account holders claim that their card has been used without their knowledge and that they were not the ones to perform the transaction. In this case, where the transaction (i.e. payments made while e-bookings or reservations) is not claimed by the owner, the bank is bound to charge it to someone since they will never bear those losses. In these cases, that someone is mostly the bank’s client. The client or merchant then bears the losses, heavy or not. To avoid such financial hits, it is better to install an identity verification or KYC service in your system. This way, if a person claims they never performed the verification or they cancel or refund it out of the rules/guidelines set for the purpose, the timestamps and images/videos used by the KYC software can always prove the truth.

Therefore, needless to say, KYC verification is an essential component of any and all the Customer Due Diligence (CDD) measures taken by merchant in order to protect the financial and reputational integrity of the business.

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