In the new socially-distanced global economy, in-person interactions are becoming less and less frequent, with online
onboarding remaining prevalent purely for convenience. While this is advantageous because of its speed, the disadvantage is that it has provided a larger platform for cybercrime, giving criminals the opportunities that they need to create sophisticated fake identities. Thankfully, technology has caught up, confronting fraud head-on with quick and accurate verification tools such as biometrics.
Biometrics for onboarding
Innovative biometric technology has changed the way that businesses in modern times operate. Specifically, this technology has been used to streamline business onboarding processes by saving time and reducing the costs related to manual onboarding procedures. Using unique identifying features such as customer faces or fingerprints, biometrics can improve the security of business operations as well as the efficiency of onboarding. Banks, insurers, and many more have started using
facial verification and
fingerprint verification to onboard new customers, as well as employees in some instances. These biometric verification tools provide businesses with accuracy when
authenticating individuals, unlike any other manual procedure that involves the risks of human error. As businesses equip themselves with these technologies, they can start to implement more effective fraud prevention strategies.
Preventing fraud through verification
Biometrics is the most accurate means of validating individuals’ identities.
Facial verification software is a great way to verify customers remotely, ensuring that your business is transacting with real individuals. This software offers extra protection through liveness detection using AI to prevent deepfakes and spoofing attacks. Banks that have already integrated this software into these systems have streamlined their customer onboarding, but have also taken it a step further, using this software for other functions and alleviating the need for customers to remember pins and other identifying factors. On the other hand, the installation of biometric hardware such as
fingerprint readers has given businesses the ability to instantly access customer information stored with the Department of Home Affairs while customers are physically present in-store. While in-store interactions are diminishing, they have not been eliminated entirely, so it is still imperative for businesses to have these safeguards. Every biometric process that a business chooses to implement is a means of ensuring that they remain secure while complying with
Know Your Customer (KYC) regulations.
KYC compliance
KYC compliance varies from region to region; however, biometrics offer businesses a one-size-fits-all approach that ensures that they can maintain their compliance through effective onboarding procedures. Biometrics such as facial and fingerprint verification are essential protective solutions for business KYC processes. These solutions are exponentially advanced alternatives to the traditional, paper-based approaches that businesses have been using. The implementation of KYC-compliant software ensures that financial institutions are protected not only against fraud but against activities such as
money laundering and corruption. Businesses can confidently onboard new customers through a series of verification checks to verify customer IDs. Once onboarded, businesses can rest assured that further transactions can be conducted without the risk of data theft. Through integrated paperless, and, oftentimes, contactless methods your business can completely transform its approach to onboarding – for customers and employees alike.
Onboarding remote staff
Onboarding software is generally brought into businesses to protect businesses against fraudulent customers, but its functions do not end there. Social distancing and remote working trends have also affected the internal processes of businesses, with many companies choosing to work and hire remotely. This means that many organisations are no longer meeting their employees face-to-face. Businesses that have adopted these remote hiring strategies are also at risk of onboarding fraudulent employees due to the anonymity of the process. Thankfully, biometric technology like facial verification software can be integrated into hiring procedures to ensure that businesses are not at risk of internal employee security breaches.
