Three key steps to protect your business from identity fraud

Technology has opened new economic avenues but heightened risks. The complexity of business operations demands proactive measures like “business identity fraud protection” to mitigate cyber and financial threats.

Know Your Customer (KYC) requirements are now mandated in many industries, along with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) requirements. But, protecting your business while meeting your KYC compliance requirements is just as important and only takes three steps: 

• Check your customer’s identities regularly: Many industries require regular identity checks, not just during onboarding. Don’t forget that when checking a customer’s identification documents, you need to monitor for inconsistencies closely.
• Undertake Customer Due Diligence (CDD): The use of fake identity documentation is rapidly rising. Checking identity documents against other sources is mandatory for many industries, and protects your business from fraud. Recommended measures include collecting customer information from trusted sources as well as determining the purpose, intended nature and key beneficiaries of any transactions.
• Manage risk by applying Enhanced Due Diligence (EDD): Experience tells us that some transactions and types of customers are higher risk than others – particularly when working across countries or where information provided may be inconsistent. At this stage, you should gather additional information to gain a deeper understanding of customer activity, thereby reducing the risk to your business.

Manual processes, like photocopying documents or sending your customers to a third party, are insecure, expensive, time-consuming and challenging to manage. Fake identity documents are becoming increasingly sophisticated, making it nearly impossible for staff to detect. 

Automate KYC for efficient, secure customer data protection. Digital identity verification ensures quick, reliable, and accurate information, ensuring customer authenticity.

Reach out today to explore how Scantek can assist you in seamlessly meeting your business’s compliance requirements, including robust “business identity fraud protection.