know your customer

KYC (Know Your Customer) solutions are fast becoming popular in many industries thanks to their ability to help prevent identity fraud and other money laundering practices. Now, many businesses need to abide by regulations to ensure certain customers are protected, and others are prevented from registering their information in the first place. But, what online industries/businesses are heavily reliant on KYC products?

Banking Institutes

With the ability to now apply for a bank account online, it’s paramount banks have the right systems in place to ensure the identities are correct for the applicant. Such systems aren’t only in place to prevent fraudsters from applying with different identities, though; they’re also in place to protect customers who are real but are making mistakes in their application. Online banks are heavily reliant on KYC facilities and without them, banks would suffer greatly.

E-Currency Services

Services like PayPal & Neteller have their own KYC practices in place to prevent money laundering and fraud. It’s very easy for criminals to create accounts with e-currency services these days, but with KYC now becoming more knowledgeable, it’s easier for PayPal & Neteller to turn members away who aren’t who they say they are. It’s not just identity fraud that’s a problem with e-currency services; it’s also people registering for multiple accounts so they can scam other members by selling goods they don’t necessarily have. Of course, the likes of PayPal have their own refund guarantees, but if the PayPal account holder wasn’t who they said they were in the first place, it’s going to be very hard for PayPal to get refunded.

Online Bookmakers

With more and more bookmakers coming into play and the gambling industry rising once again thanks to mobile technology, it means more identity fraud and money laundering efforts are being found out. Bookmakers online give players the chance to deposit/withdraw funds via several payment methods and players used to be able to deposit into one method and withdraw via a completely different one – giving money launderers easy access to clean funds. This isn’t much of a problem these days thanks to KYC products. It’s also about being a responsible bookmaker and preventing players from gambling who have a gambling addiction. KYC solutions prevent players from registering under different names with different emails and home addresses.

Adult Websites

Of course, bookmakers are thriving from preventing minors from gambling, but that’s not the only age-restricted services/goods suppliers that are benefitting from KYC. The adult industry is now fully regulated in that department and what was once a costly process to prevent minors from registering for accounts is now much more cost-effective thanks to software like this identity verification service. Adult websites now have an advantage of knowing their customers so they can judge whether they should be allowed access.

The world of KYC is now a huge industry and it’s growing all the time. There will always be problems when it comes to identity fraud and money laundering as far as online businesses are concerned, but with KYC services making vast strides, it’s only a matter of time before it’s almost impossible for criminals to commit illegal crimes online.