What is KYC Cybersecurity? How does it affect your business?

Individuals, governments, and organizations face cyber threats every day. Traditionally, KYC cybersecurity was limited to antiviruses and firewalls. In recent years, the advent of cloud protection, ransomware, malware protection, and even identity protection can keep you anonymous online.

With a growing number of consumers using online platforms and services, business leaders have to take steps to help protect their customers' information. KYC cybersecurity solutions are an important part of any company's cybersecurity strategy, as it helps businesses protect against cyber fraudsters who may be trying to steal customer data.

As bank customers, we all have our fingers on the pulse of financial movements. Know Your Customer (KYC) and Know Your Business (KYB) are mere consumer terms, but they have forced compliance in the banking sector—online and offline. Banks cannot even open their doors without verifying the identity of their customers, whoever is compliant with anti-money laundering (AML) laws.

How can you add automated KYC to your cybersecurity policies?

The KYC verification solutions ensure that customers clear all the essential customer due diligence security checks during customer onboarding. But in PwC’s 2020 Global Economic Crime and Fraud Survey, findings showed that the number one and two types of fraud in most industries were customer and cybersecurity, respectively. According to this survey, the KYC verification process failed at some point during customer onboarding. The onboarding process remained virtually untouched despite companies investing in more robust cybersecurity measures.

KYC verification management systems help to discover if you have new jobs, accounts, or industries. KYC Cybersecurity policy is a very crucial aspect of this process. The Screening for mobile ID verification process needs to embrace a heightened level of scrutiny across the board for industries at risk, such as healthcare e-commerce. Business customers and employees of the industry should be included in basic customer due diligence. Involuntary or voluntary, customers and employees are the primary sources of risk. Implementing security measures at core touchpoints in the onboarding process can significantly improve your KYC in the verification process.

A comprehensive KYC policy that includes both - customers and employees will help you identify fraud, speed up customer enrollment, reduce costly manual checks and save time.

Enhancing your KYC knowledge and awareness about cybersecurity.

Your frontline employees should also be in charge of the cybersecurity program and behavior monitoring in KYC.

Despite this, customers interpreted it as credit card vulnerability, whereas their personally identifiable information was at risk. Create an education campaign to enlighten the customer on why you need to validate IDs and how this identity verification system is protected against internal and external threats.

Improving data management with easy documentation

The business email compromise (BEC) attack, ransomware, and false documentation have all surged during the pandemic. The main targets of these attacks were CEOs and other key decision-makers. Business owners and managers can share some of the blame for cybercrime's growth in the wake of a pandemic. Many businesses assumed the pandemic wouldn’t last long and did not see these systems as a necessary expense or financially viable investment.

Biometric screening for ID verification

Organizations rely on their KYC AML solution to assess the suitability of new customers, employees, and partners. Businesses are tasked with building an adaptable process for administering onboarding for new customers, ensuring compliance, and keeping pace with cyber threats. Auto KYC gives businesses the flexibility of quick access and updates with the security risk assessment API to analyze documents in real-time. AI and machine learning give your KYC in verification solution the ability to solve problems, adjust as needed, and automate tasks for better business outcomes.

Mobile systems are easy targets. Attacks could be target based, and as with almost any other secure digital device, there are various levels of permission needed to gain access. The deterrents include mobile users being too trusting, criminals being aware of these vulnerabilities, and the potential for jail time for crimes related to mobile devices.

Database cross-referencing and behavior monitoring

Online databases can verify customer identity and documentation due to the quantity of demographic and behavioral data collected by social media platforms. As part of your company’s automated KYC process, adding this step can reduce fraud risks and improve onboarding.

Years ago, KYC professionals were not exactly sure what their job was, and it constantly changed. Today, KYC professionals are unaware of their next evolution, and how their role impacts the company's cybersecurity mandate. KYC staff shouldn't be asked to identify fraudsters without cybersecurity training or technical support.

Role of KYC in verification process

Make the KYB verification process easy by reviewing their data protection, cybersecurity practices, and onboarding process. Remind your new B2B customer of the risks of non-AML compliance on both ends and educate them on what they owe to new cybersecurity threats as part of their ongoing customer relations. Help your new B2B customer protect themselves against bad actors by implementing KYCC policies while building a lasting partnership against financial crime.

Automated KYC Cybersecurity with IDMERIT

Leadership cannot only consider mobile ID verification solutions or other technological innovations - they should include KYC staff training as part of their onboarding best practices. Companies need solid identity verification systems as part of their customer onboarding best practices as stated in KYC and cybersecurity. Customers need data protection and education about the KYC verification process - and throughout all this, your KYC team will need to stay up-to-date on trends and emerging cyber threats. That is why even large established corporations need help with KYC. In-house KYC verification solutions lack the human resources, interest, budget, or necessary infrastructure to maintain the process. And while they might be able to rely on the bank for support in some cases, most banks cannot handle all of your KYC requirements without outside assistance. IDMERIT’s AI-powered IDMkyX platform of services gets your business compliant with AML regulations by using automated KYC practices.