The world has been pushed into the new normal by the COVID-19 pandemic. Many trends that have been adopted by many business organization as the new normal. One such trend is remote working, which is here to stay. Many organizations are taking on the remote working option permanently. There are many benefits to it but unfortunately, many fraudulent activities occurring through it as well. In order to curb these fraudulent activities, video identification can be used. In this blog, we will look into the significance of video identification in the new normal.
The Problems Faced by Remote-Working Operations
A report suggests that over 16 million workers have gone remote in March 2020, and this number has doubled with each month passing. Many industries were forced into remote working to avoid exposure to the disease. However, many businesses felt that their employees were more productive and happier while working from the comfort of their homes surrounded by their families and loved ones. This made the shift to remote working permanently
However, the companies had to face an increase in fraudulent activities. Employees working remotely were targeted with all sorts of fraudulent attacks like phishing attacks, ransomware, malware, etc. One of the biggest issues the employees have to face was dealing with identity thieves.
According to the report by Shufti Pro, the total number of identity fraud increased in 2020 is 3.36%. 7-10% of the total population of the US faced identity theft every year and 21% faced it many times. Statistics point out that there has been an immense rise in identity theft.
One of the major reasons identity theft increased was the lack of face-to-face identity verification. Since remote working started, the majority of the business entities are unable to verify the identity of their customers before onboarding them. Remote working pushed the businesses to online means which means the customers, complying with social distancing protocols will be unable to get their identity verified in person. This way, many fraudsters can pass through the system and the company is left to face all the consequences. One of the major industries that have been a victim of identity theft this past year has been unemployment benefits. The USA has been severely damaged by fraudulent unemployment claims.
Remote Face-to-Face Verification
To onboard the customer, business organizations are required to perform an identity verification process. By ensuring their identity, they can guarantee that no illicit activity will occur. But how is that possible while working from home?
Let me answer this question with the video identification solution. This process allows you to verify your customer’s identity from the comfort of your home. This video identification solution is based on artificial intelligence that can verify the identity of the person in just a few minutes. The video is analyzed with 3D depth perception, liveness detection, and texture analyses to detect any spoof attack. The customer onboarding with video verification has become simple. Let us discuss in detail how video KYC makes video verification possible for customer onboarding procedures.
Video KYC
This process is AI-powered aligned with HI to remotely perform the Know-Your-Customer process to onboard customers. The customer’s identity verification is carried out on a live video call with a KYC expert who guides the end-user throughout the process.
Steps of Video KYC
- The end-user fills an online form
- The user is connected with a KYC expert on live video-based call
- The KYC expert asks few questions from the end-user
- End-user to perform minor facial movements
- AI performs liveness detection on the end-user to detect any spoof attack
- The end-user is asked to show their identity document in the camera
- The AI then performs document verification on the identity document
- The photo on the document is matched against the face of the person
- The whole process is recorded by the end user’s consent
- After the process is completed, it is saved in the back office
Video identification:
KYC is a regulatory requirement provided by regulators worldwide. The 1970 Bank Secrecy Act stipulated that all customers or clients of companies or banks were required to have their identity verified. While KYC can be performed manually, it is such a lengthy process that it can be time-consuming and imprecise.
The AI-based solution can now provide video identity verification solutions through KYC video. In the KYC video, the customer is connected to a KYC expert. During the video call, the video customer identification process is performed by asking the customer to nod his head and answer a few questions. The person’s face is also checked using 3D Vibrance Detection. Subsequently, the client is asked basic questions such as name, telephone number, date of birth, etc. After that, the client is asked to show his ID card for the video identification process. The identity card is also checked to see if it is genuine and not fake or stolen. The person’s face is also checked against the identity card.
This video identification process is extremely effective in preventing criminals from stealing the customer’s identity. It uses both HI and AI, which means more precision in the verification process. This can help banks to be more productive to KYC compliance, and banks should not experience loss of money as a result of fraudulent activity. Customers can feel safe when dealing with the bank, knowing that their identities will not be misused.
To Sum it Up
This KYC video verified process only takes a few minutes and the end-user is verified remotely. What makes this process more robust, accurate, and efficient is that it uses both HI and AI. Video identification can be a major part of the new normal to enable secure remote-working operations.
