A Brief Guide To KYC Checks

What is a KYC Check?

When you own a business that sells a product or a service, you want to make sure that you know your customer or your client (also referred to as KYC within the business world). A KYC check is a process that you can invest in, which will identify who they are, their suitability for the role (if you’re working within recruitment) and other information about them that determines their authenticity. These KYC checks can be done through facial recognition, authorized signatures, checking ID documents, etc.

Without checking their identity, you are opening your business up to a world of troubles. People can use fake identities to money launder, for financial fraud or bribery and other illegal acts that incredibly damaging. These can cost your company 1000’s of dollars, so you want to make sure that it is protected.

What are the industries that use KYC checks?

Conducting a KYC check can take a lot of time. Plus, you will also have to meet the client or customer to identify that they are who they said they were. Through mobile apps such as Credas, you can save time that would have been spent on this verification process. So what are some of the industries that should use KYC checks?

Banks and Financial Institutions

This probably won’t come as a surprise to many, but banks and financial institutions require KYC check in their daily operations. They have to have strict precautions in place in order to protect themselves and other customers from fraud and the immense costs that come with it.

The Gaming Industry

Millions of people across the world play online games. An ever-evolving industry that has faced its fair share of fraud throughout the years, it has a strict verification, KYC process that is compliant with the law and allows them to implement due diligence. This process is thorough but not extensive, as many gamers would lose interest if they had to go through a long identification process. Instead, KYC checks are used to streamline the process and allow them to identify the age of the players. They do this through facial recognition, checking ID documents, etc.

The Healthcare Industry

Unfortunately, identity fraud within the healthcare sector has been steadily rising throughout the years. Fraudsters user the sometimes lacking security systems to have surgery performed or to purchase prescription under someone else’s name. This comes at great cost to the person who’s identity had been stolen, the insurance providers and the hospital/chemists themselves. The healthcare industry has begun to evolve with the time however and has implemented KYC checks into their systems. They similarly have done it with facial recognition, asking for ID when prescribing the medication.

KYC is often compared to another security process called AML, especially within the finance industry AML – which stands for Anti-Money Laundering differs to KYC as it is far broader and refers to the regulations and laws that are designed to prevent criminals from committing fraud.