Fraud Prevention Through KYC Compliance

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

Technology has opened up new possibilities to expand our reach and discover new territories. Digitalization and the internet have brought our existence online and connected us with virtual platforms. It’s not too late and nothing is beyond reach. Technology has set limits to our imagination. Ovik Mkrtchyan

Companies have also reaped numerous benefits from the development of technology. Businesses have begun to conduct their business online. A lot of retailers and even 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 advancement of technology. People have also shifted towards online shopping due to convenience. But there is the risk of fraud when using payments made online. The internet presence of consumers and businesses has attracted criminals to steal money from us and earn financial rewards. Scammers and fraudsters have discovered an opportunity to manipulate consumers as well as businesses to manipulate them and make money. Recent reports show that scams and frauds have caused billions of dollars in losses.

Numerous individuals and organizations have been 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 advanced technology, businesses are utilizing artificial intelligence. They simply use an advanced algorithm in opposition to the latest technology. Avis KYC conformity is an effective method of preventing fraud and safeguarding your company.

Know Your Customer

Companies have been using techniques known to their customers to confirm the identity of their customers. The advancement of technology and the spread of the internet have linked but also exposed us to fraud. Criminals have access to the latest technology and prepares to go to any length to steal our money.

The manual method of conducting the KYC identity check took lots of time and expense. It wasn’t a good idea for companies as it led to frustration among customers. Businesses do not want their customers to be unhappy with their offerings. Companies want their customers to be satisfied and happy 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 is a complicated machine algorithm for learning that is capable of completing complicated tasks with no human assistance. It has numerous applications and is expanding into other fields. The verification of Know Your Customer is also utilizing the aid of artificial intelligence to ensure more accurate results and improved performance. Ovik Mkrtchyan

Know Your Customer Verification is the process that identifies an individual to confirm his identity. Online fraud has created enormous anxiety in the minds of companies. KYC compliance is one method for companies to avoid fraud and safeguard their business. Other companies, such as the financial and banking sectors, utilize KYC compliance to verify the identity of customers. KYC compliance procedures to verify customers are as the following.

Document Verification

The verification of an individual is easy to do by examining the documents. A lot of businesses such as banks as well as financial institutions, e-commerce, and crypto platforms require to see personal information. The documents required can differ between business and business.

The most common kinds of documents used by the business to verify its authenticity are as follows

ID Card

Social Security Number

Credit/Debit Card

Driving Licence

Utility Bills and Others

The information gathered from documents to confirm the identity of the person is address, name the date of birth, date of issue, or document number, for example. This type of information may have an impact on different businesses. For example, when it comes to online businesses the verification of address is crucial due to the reason for delivery.

The verification of documents is easy and simple for companies. Customers must present their documents to be verified. Documents are then scanned and uploaded to the system. An AI-based algorithm that is highly developed is then run over the entire system to check the authenticity of the document. The process can take 30 to 60 seconds to provide results.

Face Verification

Facial verification can be described as a technique that is widely aware due to its use in smartphones. Face verification using biometrics typically carries out by businesses that have a greater chance of being a victim of fraudulent representations and financial crimes like fraud in tax avoidance, tax pay-off, or tax evasion. This could be, but does not limit to banks. Moreover, security providers venture businesses, crypto trading as well as ICOs and forex companies. All of these organizations are controllable and require additional protection from fraudsters and crooks.

Facial verification is easier than recording verification. Also, only needs the client to present their face to the camera on the web. However, they are also able to upload an image of themselves to prove their identity. The choice to verify the user’s identity through photos or videos is based on the company that benefits from KYC procedures. A user’s identity is confirmed in this manner: face verification feature.

The client brings in for facial verification.

They show a fake or photoshopped image for verification

Fake photos reject through face verification

In another case,

The client’s end-user comes in for confirmation

They will present their authentic photo or face to verify their authenticity.

The software will detect any photoshop, and if it is not made up of Photoshop, then it will accept it.

Address Verification

Addresses of clients are regularly verified by websites for business as well as online retailers. Also, banks ensure that they’re using legitimate credentials for accessing services. Address verification makes it easier and more acceptable for those from one end of the globe from the other side to be verified. This is the most essential approach to prevent fraud in businesses. Address verification is based on the accuracy of requests and allows organizations to deliver their goods to customers much more quickly.

Address verification can be accomplished in a variety of different ways like an ID card or tax bill, passport, and so on. The framework could use various reports to verify addresses. If one of the records is not authentic or stolen by mistake, the framework will stop the verification process. The process of verifying addresses follows the following manner

The customer selects the report that they need to verify their address. It is the responsibility of the business to determine if they have to provide their clients or customers with a variety of archive options that they can use to verify their addresses.

Transfer or check the archive to verify the address.

The framework uses conventions for information extraction to verify whether the server is a client.


These are just a few of the methods an organization can guard its customers. Also, its own company from fraudulent transactions. All of us are facing the chance of being a victim of fraud and losing money in the modern age of technology. Nobody wants to be just another statistic on the list of victims. Artificial intelligence is required to stop the advancement of technology which could be a threat to us. KYC compliance is a requirement in the modern world of online transactions to validate customers and stop fraud.

Author Bio

Hi, I’m James Watson and I am an author and technical content writer. I’ve written several contents for my readers that comprise Artificial Intelligence, Machine Learning, Cyber Security, Fintech, Crypto, Finance and Business, and many more.

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