Three key steps to protect your business from identity fraud

Technology has created a world of unprecedented economic opportunity. But in doing so, it has also significantly increased the risk and complexity of doing business. Organisations are under growing pressure to identify, analyse and understand exactly who they’re doing business with — specifically to reduce the threat of cyber and financial crime.

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. Additional information should be collected at this point to give a deeper understanding of customer activity, mitigating 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.

Automation is the most efficient and one of the safest ways in protecting your customer’s information while you maintain your KYC compliance. Digital verification of identity gives you business quicker, more reliable and accurate information, providing confidence that your customer is who they say they are.

Get in contact with us today to discuss how Scantek can help you seamlessly meet your businesses’ compliance requirements.

Get in touch