In the rapidly advancing digital era, identity fraud has emerged as a significant concern for businesses. Notably, reported fraud losses escalated to an unprecedented $5.8 billion in 2021, according to the Federal Trade Commission data, marking a sharp increase of over 70% within a mere year. Such staggering figures underscore the vulnerabilities inherent in traditional KYC/KYB practices. Relying on conventional tools and methods can expose businesses to outdated security measures, manual errors, inefficient verification processes, and an inability to adapt to sophisticated fraudulent techniques.
As cybercriminals employ more advanced tactics, these traditional models become increasingly susceptible to breaches. For instance, physical documentation can be counterfeited with alarming precision, and centralised databases become prime targets for malicious attacks. Moreover, these older methods often struggle with balancing customer convenience and security, leading to prolonged onboarding times or compromised user experiences. Given these challenges, the imperative for businesses to bolster their security and protective measures by innovating and adopting more advanced and adaptive solutions has never been more paramount.
The spike in identity fraud underscores the gaps in traditional KYC processes, which now struggle to prevent account takeovers, ensure smooth user onboarding, and detect dubious activities. Disturbingly, one in every four financial institutions has grappled with identity fraud, incurring an average setback of over $31,000. This underscores the vital role of KYC/KYB processes in the financial realm.
In response, a vast 91% of businesses intend to ramp up their investment in identity verification tools by 2024. In the contemporary digital landscape, robust identity verification isn't merely a regulatory box to tick—it's pivotal in fostering trust among businesses, institutions, and consumers.
Traditional KYC procedures, often lengthy and cumbersome, are becoming less viable in a world that values speed and efficiency. Enter the era of digital document verification. Through the power of AI, this approach offers swift and precise scans, analyses, and validations of documents, leading to faster turnarounds, heightened accuracy, and seamless operations.
Currently, over 5.22 billion people, or 66% of the global populace, use smartphones. To stay in the game, businesses are embracing remote channels more than ever. This shifting consumer behaviour necessitates a revamp of age-old KYC approaches, especially for financial institutions subject to rigorous regulatory oversight. The EU's Revised Directive on Payment Services (PSD2) exemplifies this shift, championing:
As the digital landscape evolves, Cedar Rose consistently emerges as a leader, providing advanced and reliable KYC/KYB solutions for the modern age.
With a rich history and unwavering commitment to innovation, Cedar Rose brings:
In a world where identity fraud is escalating, robust KYC/KYB processes are not just regulatory obligations but critical business necessities. Cedar Rose, with its avant-garde solutions, empowers businesses to stay ahead of fraudsters, protect their stakeholders, and foster trust.
For a deeper dive into the world of digital document verification solutions and to understand how Cedar Rose can be your strategic ally in this journey, get in touch with us today.