Daily BulletinHoliday Centre

Business News

  • Written by Diana Smith

As time goes by, new technologies and practices always find a way into the world of business. The ones that prove valuable are first adopted by the forward-thinking businesses until they finally become the industry standard. In the current business climate that's under constant threat of security breaches, it shouldn't be too big of a surprise that the methods of customer verification have become this disrupting factor that slowly turns into a requirement.

So, keeping that in mind, let us take a closer look at the issue of identity verification and see how your business can benefit from adopting this process.

What makes identity verification so important?

As disturbing as this may sound, but we are living in a world where criminals can very easily access the information regarding someone’s identity, assume that identity and ruin the credit history of the person in question with loans and extensive purchases. In short, the client we are working with may not necessarily the person we think it is.

But, these are only small frauds. In the worst-case scenario, your company may end up involved in a money-laundering scheme or even worse, financing terrorism. Such serious threats should be cut in their roots.

What are Know Your Customer procedures?

The term Know Your Customer describes the set of practices that are currently being used to fight off the threats we've just talked about. What makes them so interesting is that they effectively eliminate the slow, tedious, and expensive process of in-person identity check that has been used up until now. Besides, asking the clients to provide sensitive personal data may not always be in accordance with the local law.

The companies that are providing KYC services have largely streamlined this process to these few steps:

  • Collection and analysis of personally identifiable information (PII)

  • Screening of PII against global watch-lists (fraud, terrorism, politically exposed persons)

  • Calculation of customer risk

  • Creation of Customer Profile based on that person’s transactional behavior

  • Monitoring of future transactions against the existing Customer Profile

Because these activities are outsourced, businesses can easily verify the identity of their potential clients without creating additional pressure on the company infrastructure.

The reasons why you should start doing Know Your Customer verification

So, we can easily observe that identity verification is an incredibly important practice helping businesses that use it to stay competitive. But, to put things into perspective, let us take a look at some of the most compelling incentives behind this practice:

Legal requirements

Identity verification is becoming a legal requirement in a growing number of countries around the world. For instance, the Reserve Bank of India has long since issued KYC guidelines banks have to comply with to get permission to work. If you are not already legally required to use these procedures, implementing them sooner than your competitors can only help you further down the road.

Online frauds are on the rise

As the number of online transactions continues to grow on an annual basis, so does the number of online fraud cases. If we take a look at the recent data we can see that NAF (New Account Fraud) rose 70% over 2016, which is, by all means, a staggering number that requires immediate reaction.

Faster and tighter operations

Looking at things from a purely functional standpoint, we can see that the faster and more streamlined process of identity verification drastically improves the cost-effectiveness and simplicity of online transactions. Also, since you are working with accurate data, the chances of shipping errors are much lower.

Safer transactions

Finally, whether you need to verify the age of your customers or comply with some other legal requirement, the process of Know Your Customers makes the entire process much faster and more reliable. This way, the transaction environment is made much safer for all involved parties.

We hope these few considerations gave you some idea of what makes identity verification so integral for the future of your business. As time goes by, Know Your Identity procedures will slowly transform from something being discussed on the internet to one of the basic requirements of the business world. It is in your best interest to be at the forefront of this development.

INTERWEBS DIGITAL AGENCY

Guide to Start E-Commerce Business

If you can read this, you have access to the internet, and since you have access to the internet, you must have thought about buying something from an e-store. Today, we live in a time very contrast...

News - avatar News

Tips To Buy Office Desks From Sydney

Desks are essential components to the makeup of any office. The right type of desk makes the workflow smoothly. The majority of the people look for desks that are comfortable to work on and need lit...

News Company - avatar News Company

2019 Hottest FinTech Startups Overview

Modern technology is experiencing rapid growth, so many industries expect a so-called revolution, and the financial world is no exception. Over the past ten years, people have witnessed the emergence ...

News Company - avatar News Company

Australians need to look out for this US Crypto-platform

Good news for Aussie sports fans as UssCyber is soon to launch its very own crypto-currency sports trading platform. UssCyber, a blockchain-oriented company based in Florida, is introducing “World S...

News Company - avatar News Company

How to Choose the Right Data Recovery Solution for your Business

In the modern business environment, data is one of the most important commodities. A typical B2C seller, for instance, offering home delivery service cannot deliver the product to the right addres...

News Company - avatar News Company

CrowdStrike Services Cyber Front Lines Report

New CrowdStrike Report Finds an Increase in Cyber Adversaries Turning to Business Disruption as Main Attack Objective CrowdStrike Services Cyber Front Lines Report offers observations gained from t...

Media Release - avatar Media Release


The Conversation

Politics

Scott Morrison on Credlin

PETA CREDLIN: Thank you for your time tonight, PM I know you've got a lot on your plate. I'll get to the issue of bushfires in just a moment, but I can't let it go unremarked that with Australia Day...

Peta Credlin - avatar Peta Credlin

Scott Morrison interview with Ray Hadley

RAY HADLEY: Prime Minister, good morning.    PRIME MINISTER: G’day Ray.    HADLEY: Jeez you copped a hammering while I was away.   PRIME MINISTER: Goes with the job mate.    HADLEY: Well, yo...

Ray Hadley - avatar Ray Hadley

Immediate small business support for bushfire affected communities

In response to the devastating bushfires, the Morrison Government has today announced a comprehensive suite of measures to immediately support impacted small businesses.    This initial package ...

Scott Morrison - avatar Scott Morrison

Travel

A Travel Guide for Vacations Overseas

There are two types of tourists. Of course, that's a sweeping generalization, and we could be talking about any possible part of traveling.  In this case, we're discussing those who stick to the ma...

News Company - avatar News Company

The Family Travel Handbook from Lonely Planet

Everything you need to know to take unforgettable trips with your children   Full of practical advice, ideas and inspiration for every type of family, Lonely Planet's The Family Travel Handbook ...

Adam Bennett - avatar Adam Bennett

3 Ideas for a Family-Friendly Holiday to Bali

A family holiday is always an exciting time, but it can often come with its fair share of challenges, especially when trying to keep every member of the family happy. Thankfully, the beautiful islan...

News Company - avatar News Company

ShowPo