Profit Maximization Is The Holy Grail For Every Business.All The Business Operations Are One Way Or Another Directed Towards Making The Business More Profitable And Sustainable.  


However, It Is Crucial For A Business To Understand The Origins Of Its Money And Secure Its Transactions. Purpose , every business should conduct proper due diligence regarding its clients and their sources of income.This reduces the chances of illegal and fraudulent activities and prevents disruptions in the financial market. 

There were about 3 million cases of reported in 2018, out of which 1.4 million were fraud-related, and in 25 percent of the cases, money loss was reported.In 2018

It was reported that consumers lost about $ 1.48 billion related to fraud complaints, an increase of $ 406 million from 2017.

Global  Financial Regulatory Authorities To Prevent Instances of Fraud,

Global financial regulatory authorities have introduced KYC and AML regulations.It is mandatory for banks and financial institutions to comply with these regulations. 

However, businesses are also becoming more complacent.Toward these guidelines.As reported by Fenergo (2019), regulatory authorities across the US, Europe, the Middle East had imposed hefty fines of $ 26 billion in financial penalties for AML / KYC compliance violations.

Businesses Or Institutions When Get Into Partnerships Or Conduct Transactions With Individuals Or Organizations Without Conducting Due Diligence Or Properly Knowing Them, They Can Be Exposed To Heavy Penalties And Regulatory Changes.


In  Some Cases, Businesses Will Not Realize If They Have Processed A Fake Transaction Until Weeks Or Even Months Later.This  Causes A Lot Of Trouble Because When All The Parties Realize, It'S Often Too Late To Locate The Criminal Or Put Charges.


Theres Best Way To Protect Your Business Is To Know Your CustomersProperly And Conduct Due Diligence.So that if the hackers or scammers ever plan something dubious, you're way ahead of them.

A Deep Dive into KYC

KYC or Know Your Customer refers to the regular procedure banks and financial institutions go through in order to authenticate the identity of a client.Because of the rise in internet frauds, many businesses have also started adopting KYC procedures.It was initially introduced by the Reserve Bank of India in 2002 and was globally implemented by 2005.It consists of four main components, namely: 

• Customer Acceptance Policy;
• Customer Identification Procedures;
• Monitoring of Transactions; and.Risk
• management.

Identity Verification For Business Help To Understand The Customers, Monitor Financial Transactions, And Reduce The Potential Risks Associated With Customers And Their Business Relationships.  


For  The KYC Verification Process, Users Are Required To Provide Their Personal Information Which Includes Name, Address, Contact Information, Documents ID, Etc.  All Of The Information Is Verified Before The Individual Conducts The Business Transaction.  


KYC Verification Is Integral For Financial Institutions And Businesses, And Non-Compliance Can Result In An Increase In The Instances Of Frauds And Scams. 

Providers have recently started verifying identities through the use of Artificial Intelligence (AI) technology.AI systems are integrated into webpages and applications of businesses and institutions, which authenticate identities through the use of webcams.There are many ways AI is used To verify identity. Some of them are listed below: 

• Face Verification

The use of artificial intelligence systems to detect facial features for verification purposes.

• Document  Verification

The use of artificial intelligence systems to detect the authenticity of various documents to manage fraud.

• Address  Verification

The use of artificial intelligence technology to verify addresses from the documents to minimize the threat of fraudsters.

2 Factor Authentication 

The Use Of Multi-Step Verificat Ion To Enhance The Protection Of Your Accounts By Adding Another Security Layer, Usually Involving Your Mobile  Phone. Consent VerificationThe Use Of Handwritten User Consent To Onboard Only Legitimate Customers.   


It Is Important To Understand That A Silver Bullet Fraud Prevention Does For Not Exist.It Takes Persistent Efforts And Ongoing Research To Secure Your Systems And Accounts. Together These Procedures And Skills, When Organized And Utilized In The Proper Way, Can Help Create A New Frontier Of Validation And Identity Management. 


Hackers are quick to evolve, therefore businesses and individuals should keep head of them.The only way is to follow proper KYC compliances.