bankingciooutlook

What is KYC and how does it Help Prevent Cyber Intrusions

Banking CIO Outlook | Tuesday, May 24, 2022

Today, organizations provide safe KYC solutions to improve cybersecurity. Facial liveness solutions use Artificial Intelligence and Machine Learning to assist avoid fraud by giving a perfect verification method.

Fremont, CA: Cybersecurity and KYC have lived as two different universes for the longest time. Cybersecurity traditionally meant defending businesses against external dangers such as antivirus software and firewalls. On the other hand, companies have used KYC as part of their customer onboarding process to verify that a new user gets qualified after passing security tests.

Another result of the coronavirus outbreak is the fusion of KYC and cybersecurity. As individuals got forced to stay at home due to lockdowns, internet companies exploded. But unfortunately, it also made cyber-threats an everyday occurrence. Since the pandemic, 71 percent of IT and security experts throughout the world have observed an increase in security risks and assaults.

Understanding what is KYC and How Its used for cybersecurity?

Financial institutions are more exposed to criminal activity than ever before in the global economy than ever. To safeguard financial institutions from fraud, corruption, money laundering, and terrorist funding, Know Your Customer (KYC) requirements were created.

Businesses have traditionally valued Know Your Customer (KYC). It was formerly only required of regulated enterprises. Still, as technology has advanced, it has become increasingly necessary for all businesses, especially as the bulk of services are now provided online. It serves as the first point of contact for customers since it contains biometric information such as fingerprints, IRIS, and faces. Before offering any service, they guarantee that uniqueness is validated.

Account-opening and account takeover fraud losses have got recorded by 57 percent of firms. It indicates that cyber dangers are invading KYC procedures, necessitating an extra layer of security. Today, organizations provide safe KYC solutions to improve cybersecurity. For example, facial liveness solutions use Artificial Intelligence and Machine Learning to assist avoid fraud by giving a perfect verification method. Previously, it didn't appear easy to do face liveness checks without physical proof, but nowadays, a selfie or a fast video chat can suffice. Such technologies can be helpful by social media networks to combat cybersecurity fraud.

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