Eradicating Financial Frauds Using the Digital KYC Verification Process

KYC verification process should be observed in major organizations to prevent the prevailing thefts and crimes in the community. Most firms have already adopted KYC (Know Your Customer) compliance. The main aim of these regulations is to counter illicit activities from organizational channels such as money laundering. Most of the systems nowadays are digitalized as it is the requirement of the modern time. Talking of automating the procedures, the trading and investment systems are also incorporating computerized software for efficient management and security.

KYC Services

The know your customer services are important not only for the identity verification process. In fact, also act as a defense mechanism against money laundering activities among most systems. KYC services indicate the procedures that are used as per KYC laws which act as the guideline to evaluate the customers on multiple platforms. 

KYC verification can evaluate the client from multiple perspectives ensuring the genuineness of the customer. Most of the service providers have complied with the regulations and added themselves to the list of verified businesses. 

The KYC services list has now been greatly improved by adding multiple checks and methods for verification. The addition of technology also enhances the services as the AI-based software act intelligently in detecting unusual activities from the system. The Digital adoption of KYC procedures enables effective marking of the criminals. It is also used in the security systems at most organizations.

Digital KYC Verification Process

The digital approach for the identity verification of a customer carries a number of steps that approve the client. The phases are traditional as well as newly added KYC checks. The digital verification process is initiated by a number of virtual evaluations.

Digital Document Verification 

The document verification process is the general check that most customers experience. It’s been there for ages since the legal paperwork provides the correct identity information of the client. The KYC compliance cannot be fully implemented without the document evaluation. To verify the documents in the digital systems, the technologies of artificial intelligence and Optical Character Recognition (OCR) play a vital role.

With OCR the documents are processed through a computerized solution. It extracts and verifies the data from the documents such as identity cards and passports. The user submits the images of their government-issued licenses to the system. The OCR-based solution is responsible for the completion of the process.

Biometric Evaluation

The existence of biometrics is a blessing to all security systems. It provides a secure authentication method for many processes. The modern-day investment and funding platforms such as cryptocurrencies and NFTs also incorporate a biometric evaluation procedure. They use this check before allowing any involvement of the customer. Most currencies carry a high value in terms of finances such as Bitcoin, Ethereum, and Binance coin. Most customers refer to the identity verification process of crypto as KYC Bitcoin due to the market-leading nature of BTC.

The biometric verification process includes the completion of user evaluation. It processes through natural characteristics such as fingerprint reading, facial recognition, and iris evaluation. The face verification method is the most used service as it provides excellent usability. It also improves efficiency with a no-touch solution. The digital biometric method also uses the face recognition technique. This process of identification is also sometimes referred to as selfie verification as it uses the front camera of the customer’s smartphone to verify their face in real-time.

Use Case Of KYC Verification Process

One of the major use cases for this process is to secure the onboarding process in many organizations. Businesses nowadays have developed complete digital appearances as the online market is generating quite a lot of revenue. These platforms use virtual onboarding solutions to ensure the right client access to the resources on the networks. The client onboarding process is made secure with the complete implementation of KYC checks. It is executed on all the gateways of the firms. The selfie verification method works on the end to verify the customer biometrically. The document and address verification services are also a part of the onboarding information gathering process. This method of verification is also referred to as online know your customer service.


The identity verification solution works for so many businesses as a primary check to verify their clients and employees. This measure acts as a safeguarding principle against the illegal attempts of money laundering and terror financing. With proper KYC implementation check, the fraudsters and cheaters are effectively-identified to be reported to the criminal enforcement agencies. The KYC verification process is also made more secure by the addition of new technologies of AI and OCR. It should also be mentioned that biometric verification procedures also play a vital role in verification. 

Also, Read- Door Access Control Systems

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