Due to the digital revolution, the online world has become a necessity for every industry to embrace. Due to this, every business is in a race to find online ways to operate their businesses. Covid-19 is just like a cherry on the top. It has given these businesses a final push. In order to keep up with social distancing protocols and maintain business operations, it has become a necessity to start online business platforms.
This might have advantages but even the fraudsters are already present on these platforms to fool the people and take advantage of the situation. Hackers and identity thieves are scamming not only people but also businesses online. It is necessary for businesses to follow KYC regulations but it has become quite a demanding task for them to comply with these regulations. In order to solve this problem, face recognition has been developed through artificial intelligence to verify the identity of people by using their face. Let’s talk about the importance of face recognition in the identity verification service.
Why is KYC Necessary?
In the 1970s, The Bank Secrecy Act was passed that required every business organizations and banks to verify the identity of each and every customer. This act was passed to completely eradicate the money laundering and identity theft activity. Any suspicious activity seen must be reported to authorities immediately for instant verification. If they fail to perform these verifications, businesses are to be charged with heavy penalties and permanent closure of the business. In 2001, after the 9/11 attack, these laws became more strict to fight terrorism by stopping the use of stolen identities and money laundering financing of the terrorists.
Face Recognition For Video KYC
Now that we know how necessary it is to carry out these KYC procedures, let’s discuss how difficult to perform these verification tasks when the person is not physically present for the verification procedure. Covid-19 has made it even harder as people do not have any other option but to use online means. Online verification processes are a help but they cannot be as accurate as using the person’s face. Fraudsters have different ways to even manipulate the online KYC procedures with their spoof attacks. This is why facial recognition technology is necessary to verify the identity of the person by verifying their face. Video KYC is a process that uses facial recognition technology to verify the identity.
- Here are some steps explained in detail for video KYC uses face recognition for face verification.
- The customer is required to register themselves by filling out a registration form on the company’s website.
- Once that process is completed, the customer is put on a video call with a KYC expert online who guides through the whole process.
- Their face is verified through face recognition technology. They are asked to move their face and answer a few questions to ensure their presence.
- Once that is done the customer is asked to show their identity card on the webcam.
- The photo on the identity card is also verified with the previously submitted document.
- The document is checked from all sides to ensure that it’s not fake.
- This whole process is recorded with the permission of the customer.
- Once the procedure is carried, it secured in the back office.
Face Recognition as Biometric Authentication
Another security measure that is very common these days is biometric authentication. It utilizes the unique biological features of the person as their identifiers. These identifiers are then used to verify the identity of the person. The face can be used as an identifier and facial recognition technology helps perform this biometric measure. It can be used by many industries like traveling, law enforcement, or even home security.
To Sum it Up
Face recognition is the technology of the future that has helped many businesses comply with KYC regulations. They no longer have to face fines or even loss from fraudsters. They can now keep their good reputation as well.