TECH & AI
Today , finance fraud is happening beyond the KYC stage . How can fintechs / finservs enhance their onboarding processes and ensure fraud beyond the KYC stage is limited ?
Adam Davies : Accessing data from across multiple internal and external systems ( eg , device intelligence , biometric validation , contact data verification ) will help to resolve customers ’ identities and transform that data to the appropriate format for making decisions .
That level of insight also helps put the customer ’ s interaction in a historical context , which can enable fintechs to identify anomalies that may indicate fraud .
Link analysis / social network analysis helps to associate data entities and perform data matching across multiple data sources , such as applications and account records . Matching can uncover links indicative of criminal activity , and connections that are several degrees separate can be detected and visualised .
Finally , fintechs need dynamic orchestration to meet the requirements of each specific scenario , whether during the onboarding process or during a customer management process .
For example , the source of an application helps to determine what identity checks are invoked ; or a high- value transaction to a new beneficiary may result in more stringent identity verification than a small dollar transaction to a known beneficiary .
That level of agility and composability allows fintechs to deliver truly personalised experiences that help reduce fraud while meeting customer expectations .
Grigory Yusupov : As financial fraud happens beyond the KYC stage , fintechs should implement an effective , long-term cybercrime and fraud prevention strategy .
So-called risk signals are an innovation within the added ‘ layers of defence ’ that fintechs can use to tackle cybercrime after the initial KYC process is complete .
In fact , more focus will have to be placed on authentication processes rather than focusing only on the initial verification process of a user .
In the future , users will likely have to prove their identity through authentication measures throughout their user life cycle . Fintechs and financial service providers will be able to mitigate risks by adding an extra layer of authentication . fintechmagazine . com 147