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KYC: How To Identify Fraud Contacts Via Email

KYC stands for “Know Your Customer” and is a process of identifying and verifying a client’s identity — ensuring that their clients are genuinely who they claim to be. Email KYC is a process in which an organization sends a confirmation email to customers asking them to verify their identity by replying to the email.

What Is the KYC Process?

As KYC becomes more widely adopted, it’s becoming increasingly difficult for organizations to maintain customer data in a safe and secure way. More sensitive information is being sent via emails due to a lack of security protocols in place during KYC processes.

But what happens when your customer doesn’t respond? Or when you have received numerous requests from multiple customers to resend or confirm KYC information? Fraudulent KYCs are popping up more frequently as hackers target KYC emails containing sensitive client information.

Common Signs That a KYC Process May Be Fraudulent

In this post, we will discuss how KYC providers can identify certain scenarios that may indicate fraudulent KYCs and what to do about them.

One of the most common signs that a KYC process may be fraudulent is when customers stop responding to emails or communication in general. KYC providers should keep track of how often customers are responding to requests for KYC information and what type of response they are receiving (e.g., email, chat, etc.). If there is a sudden decrease in customer activity or if there is no response at all, this could be an indication that something is wrong.

Another red flag for KYC fraud is when customers start requesting to resend or confirm KYC information multiple times. KYC providers should keep track of how many times customers are requesting to resend or confirm KYC information and what type of request they are making (e.g., email, chat, etc.). If there is a sudden increase in customer activity or if requests are being made for the same information multiple times, this could be an indication that something is wrong.

The Benefits of KYC Automation

Automating KYC processes eliminates the need for manual data entry, reducing efforts needed to verify identities and reducing costs proportionately. According to a Juniper Research study, the average cost per KYC customer is $15 including onboarding and documentation fees

Current KYC methods lack transparency too, with customers not knowing how their information is being used by banks and others. The GDPR demands businesses be upfront about what personal data they collect from customers and why it’s necessary. Customers must also explicitly agree that you can collect this information for KYC’s purposes. Which gives them more control over their own data than ever before.

KYC Process Can Be Time-Consuming

We know that it can be a pain to verify customer information, but we also know how important it is for businesses to protect themselves from fraud. That’s why we recommend working with a reliable cybersecurity solutions company is a great idea—so you can stop worrying about identity verification and get back to running your business.

For example, Jumio’s AI-powered technology is one such solution. It makes it easy for you to quickly identify fake or stolen IDs. It will also provide real-time alerts when suspicious activity occurs on your account. You don’t have to worry about fraudulent transactions anymore because the system will automatically block them before they happen! Such solutions could even help you with all the stress that comes with ID verification. A reliable Identity Verification product uses facial recognition technology to compare a customer’s selfie against their government-issued ID document. This process helps to ensure that the person presenting themselves is who they say they are. And oh, by the way, the company we suggested above, Jumio, provides this service as well.

When it comes to reliable security solutions, companies often offer Identity verification, eKYC, and transaction monitoring powered by AI. Jumio is used to primarily verify identity for business security and to comply with KYC and data protection regulations. The Transaction Monitoring solution uses AI-powered machine learning to detect suspicious activity in real-time. This helps businesses to protect themselves against fraud and money laundering.

Regulatory Body of KYC Compliance

One of the main KYC objectives is to prevent fraudsters from opening bank accounts and conducting fraudulent activities. Financial institutions are able to protect their customers and themselves by identifying and verifying the identities of their clients. KYC compliance ensures a standard, uniform identity verification process across banks and financial institutions

The KYC standards consist of KYC Rules, KYC Profile Reporting Template, KYC Repository, KYC Procedures, and KYC Compliance Management Framework. This new rule forced all data controllers to appoint a Data Protection Officer (DPO) if they have more than 10 employees and process personal data. The DPO will be responsible for ensuring that the company complies with the GDPR. And will need to be familiar with the new regulation in order to help advise on compliance.

One of the main requirements of KYC is that personal data must be destroyed when it is no longer needed. This includes both paper and electronic records

Banks and other financial institutions are not the only ones who are required to comply with KYC regulations. Any company that processes personal data must ensure that they are compliant with KYC regulations. Regardless of their size or industry.

If you are unsure about how to comply with KYC regulations or would like more information, you can either look for a reliable solution yourself or go with our recommendation, Jumio. They are experts in data protection and KYC compliance. They can help you ensure that your company is fully compliant with the latest regulations of KYC.

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