Category: Banking

Welcome to our specialized banking category, an expertly curated space where we delve into the exciting world of digital transformation sweeping across the banking industry. Our insightful articles explore a multitude of facets that are actively shaping the future of banking, from the disruptive force of cutting-edge technologies to the shifting paradigms of customer expectations.

As the terrain of the sector undergoes continuous evolution, it becomes increasingly crucial for industry professionals, enthusiasts, and observers to keep abreast of the latest developments and trends. Our in-depth articles serve as a resource, providing valuable insights into how traditional banking institutions are navigating the transition to the digital age, and how emerging fintech companies are spearheading innovative solutions that are redefining the industry’s contours.

Our coverage encompasses a wide array of topics, from the convenience and the ubiquity of digital payments to the transformative impact of regulatory technology and the paramount importance of data security. This comprehensive exploration offers our readers a panoramic view of the digital banking ecosystem. Our overarching objective is to equip our readers with a nuanced understanding of the challenges that lie ahead, as well as the opportunities that digital transformation brings to the fore.

So, immerse yourself in our curated content, enrich your knowledge, spark meaningful conversations, and stay ahead of the curve in this digital banking era. Join us in exploring the captivating world of this sector where the only constant is change. Welcome to the future of banking, with us!

Bank Account Verification

Bank Account Verification: Safeguarding Against Fraud

Posted on | by Signzian

In an era where digital financial transactions are becoming the norm, the significance of bank account verification has never been more pronounced. This process is a vital component in the fight against financial fraud, ensuring the security and integrity of banking systems worldwide. In this blog, we explore the crucial role of bank account verification, the risks associated with inadequate verification, and the latest technological advancements in this field, with a special focus on recent fraud incidents in India.

Understanding Bank Account Verification

Bank account verification is a critical process used by financial institutions and businesses to confirm the ownership and status of a bank account before processing transactions. This verification serves several key purposes:

  1. Ensuring Legitimacy: It verifies that the account is active and belongs to the person claiming ownership.
  2. Preventing Fraud: By verifying accounts, institutions can prevent various types of financial fraud.
  3. Compliance with Regulations: It aids in adhering to anti-money laundering (AML) and know your customer (KYC) regulations.

Why is Bank Account Verification Crucial?

The importance of bank account verification is particularly acute in countries like India, where there’s a rapid increase in digital transactions. Key reasons include:

  1. Rising Digital Transactions: The growing volume of online transactions heightens the risk of fraudulent activities.
  2. Complex Fraud Schemes: Sophisticated fraud schemes make robust verification systems essential.
  3. Regulatory Compliance: Financial institutions must comply with strict KYC and AML guidelines.

The Consequences of Inadequate Verification

Inadequate verification can lead to various types of financial fraud, such as identity theft, account takeover, and money laundering.

Recent Frauds in India: A Wake-Up Call

Increasing Number of Fraud Cases: In the financial year 2022-23, the banking sector in India reported 13,530 cases of fraud. However, it’s interesting to note that the total amount involved in these frauds nearly halved to ₹30,252 crore compared to previous years. This indicates a higher frequency of smaller-scale frauds, especially in the private banking sector​​.

Notable Fraud Cases:

UCO Bank Fraud: A significant case was reported in November 2023, where two engineers working at UCO Bank managed to transfer ₹820 crore from seven private banks to their accounts, exploiting the Immediate Payment Service (IMPS) system. This case involved a staggering 853,049 transactions within three days, indicating the scale and speed at which bank frauds can occur​​.

SIM Card Fraud: Another case involved a cybercriminal who exploited SIM card fraud to access and steal ₹18.74 lakh from a company’s bank account. This case highlights the sophisticated methods fraudsters use, such as SIM swapping or hijacking, to gain unauthorized access to bank accounts​

How Do Businesses Verify Bank Accounts?

Businesses typically follow these steps for bank account verification:

  1. Collecting Information: Gathering account details from the customer.
  2. Verification Requests: Sending a request to the bank or using third-party services to verify the details.
  3. Confirmation: Receiving confirmation from the bank regarding the account’s validity and status.

The entire process can range from a few minutes to a few days, depending on the method used.

How Does AI Help in Instant Bank Account Verification?

AI technology has revolutionized the process of bank account verification, enhancing both speed and accuracy. This advancement allows for the automation of tasks previously done manually, such as cross-referencing personal details like names, addresses, and account numbers. AI systems are also capable of validating documents that have been scanned or photographed and can even conduct online identity checks through video calls.

Furthermore, AI plays a crucial role in thwarting fraudulent activities. For instance, during identity verification via video calls, AI-enabled ‘liveness tests’ can identify and flag deepfake videos, thereby adding an extra layer of security against sophisticated fraud attempts.

Conclusion

Bank account verification is a critical defense mechanism against financial fraud. The recent incidents in India serve as a stark reminder of the consequences of inadequate verification. Embracing advanced technologies like AI and stringent verification processes is imperative for the safety and integrity of the financial ecosystem.

In the banking world, verification is not just a step; it’s the cornerstone of trust and safety. As we advance, staying vigilant and secure is crucial in this ever-evolving digital landscape.

How Signzy helps businesses to stay compliant and prevent bank account frauds?

Signzy’s API plays a crucial role in helping businesses stay compliant and prevent bank account frauds through its advanced features and capabilities:

Bank Account Verification API

  • Functionality: Signzy’s Bank Account Verification API facilitates the verification of customer bank accounts quickly and efficiently. It checks the legitimacy of customers, preventing fraudulent activities.
  • Process: The API works by requiring a customer’s bank account number and IFSC code, which it then uses to validate the account details against the banking information system, ensuring instant bank account verification and readiness for transactions.
  • Benefits: The API offers a dependable process, accurate perception of behavior and credit, and is both smooth and scalable. This ensures a reliable and real-time verification of information​

Fraud Screening Solutions

  • Capabilities: Signzy’s Fraud Screening Solutions are designed to minimize the risk of onboarding fraudulent customers. They use AI-based algorithms for continuous learning and evolving, which helps in reducing fraudulent activities and decreasing false positives.
  • Tools Offered: The solutions include liveness checks through assisted videos and face match selfies, basic and advanced document forgery checks, and other multi-fraud control mechanisms like mobile, email, and IP validation.
  • Impact: These tools are crucial for accepting only genuine customers, reducing human intervention in the verification process, and providing wide coverage against various forms of frauds

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs, easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.
Contact us directly!

Omnichannel support is a customer service approach that involves integrating all communication channels into one seamless system.

Omnichannel Support for Financial Institutions – Dos and Don’ts

Posted on | by Signzian

Are you tired of your financial institution’s customer support limited to phone calls and emails? Do you wish there was a more efficient way for customers to get the help they need, no matter what channel they use? Look no further than omnichannel support! This approach allows financial institutions to seamlessly integrate customer service across multiple channels, providing a streamlined experience for employees and customers. In this blog post, we’ll explore the dos and don’ts of implementing an omnichannel strategy tailored to financial institutions. We’ve got you covered from AML/KYC compliance to customer onboarding. Let’s dive in!

What is Omnichannel Support?

Omnichannel support is a customer service approach that involves integrating all communication channels into one seamless system. This means that no matter how the customer chooses to interact with your financial institution, they will receive consistent and reliable assistance.

 For example, if a customer starts an inquiry through social media but then switches to email or phone call, omnichannel support ensures that their information and progress are carried over effortlessly between channels.

This approach has become increasingly popular in recent years as customers expect more personalized and convenient experiences from businesses. By providing omnichannel support, financial institutions can offer faster response times, higher satisfaction rates, and a competitive edge in the crowded banking landscape.

However, implementing an effective omnichannel strategy requires careful planning and execution. In the next sections of this article, we’ll explore the dos and don’ts of adopting this approach for your financial institution.

The Benefits of Omnichannel Support

Omnichannel support offers a multitude of benefits for financial institutions. First and foremost, it provides customers with a seamless experience across all channels, whether they prefer to interact in person, online or via mobile devices. By offering this level of convenience and accessibility, financial institutions can increase customer satisfaction and foster deeper relationships.

Another benefit is the ability to provide personalized service that meets individual needs. With omnichannel support, banks can collect data on each customer’s preferences and behavior across channels. This information can be used to tailor marketing messages or make product recommendations that are relevant to them.

Omnichannel support also improves operational efficiency by streamlining processes such as KYC (Know Your Customer), AML (Anti-Money Laundering) compliance checks, address validation and ID verification. These tasks can be automated through digital channels without compromising accuracy or security.

Implementing an omnichannel strategy helps financial institutions stay competitive in today’s digital landscape by providing a consistent brand image throughout all touchpoints. By embracing technology advancements that meet their clients’ expectations for easy access and excellent experiences from start to finish opens doors for greater loyalty from these consumers over time!

The Dos of Omnichannel Support

When it comes to implementing an omnichannel support strategy for financial institutions, there are certain dos that can help ensure its success. Here are some of the key things to keep in mind:

Firstly, do prioritize customer experience. Omnichannel support is all about creating a seamless and personalized experience for customers across multiple channels. This means ensuring that every interaction with your institution is consistent, efficient and user-friendly.

Secondly, do implement robust security measures throughout the onboarding process. From AML/KYC compliance checks to ID verification and address validation protocols, your institution should have strict procedures in place to mitigate fraud risks.

Thirdly, do invest in technology that supports omnichannel engagement. Whether it’s chatbots or mobile apps designed specifically for banking services, leveraging cutting-edge tech can enhance the customer experience while also making operations more streamlined.

Do measure performance regularly and adjust accordingly based on data insights. By tracking metrics like response times and satisfaction rates across different channels, you can identify areas where you need to improve your omnichannel strategy over time.

By following these best practices when implementing an omnichannel support approach for financial institutions, you’ll be well-positioned to meet customers’ expectations while driving business growth at the same time.

The Don’ts of Omnichannel Support

When it comes to implementing an omnichannel support strategy for financial institutions, there are some key mistakes that should be avoided. Here are the don’ts of omnichannel support:

1. Don’t overlook data security: While it’s important to provide a seamless customer experience across channels, data security should never be compromised. Financial institutions deal with sensitive information such as AML/KYC compliance, address validation and ID verification, so make sure all systems and processes are secure.

2. Don’t forget about training: Implementing an omnichannel strategy requires proper training for employees who will be using these channels to interact with customers. Failing to train employees can lead to inconsistent messaging or even errors in compliance.

3. Don’t ignore customer feedback: One of the benefits of an omnichannel approach is the ability to collect feedback from customers across different touchpoints. It’s important not to ignore this valuable input – use it as insights into your operations and adjust your strategies accordingly.

4. Don’t underestimate the importance of consistency: Consistency is key when it comes to providing a positive customer experience through multiple channels. Make sure branding, messaging and tone remain consistent across all platforms.

By avoiding these common pitfalls in implementing an omnichannel strategy for financial institutions, you’ll ensure a smoother process that delivers better results for both customers and your business overall.

How to Implement an Omnichannel Strategy

Implementing an omnichannel strategy can be complex, but it is essential for financial institutions that want to remain competitive. To successfully implement this approach, it’s important to start by understanding your customers’ needs and preferences.

Firstly, identify the channels that are most commonly used by your customers. This could include email, phone calls, social media platforms or chatbots. By knowing where they prefer to communicate with you, you’ll know which channels you should prioritize when implementing the omnichannel support.

Secondly, ensure that all of these communication channels are integrated into a single platform so that all customer interactions are recorded in one place. This will give agents a complete view of each customer’s history with your institution and allow them to provide personalized support based on their individual needs.

Thirdly, make sure you have the right technology in place to manage and track customer data across all channels. This includes tools such as AML/KYC compliance software or address validation systems for ID verification during customer onboarding processes.

Train your staff on how best to use these tools and encourage them to collaborate across different departments within the organization. By doing so, everyone will have access to the same information resulting in better service delivery and stronger relationships with clients.

Implementing an omnichannel strategy requires careful planning but ultimately leads towards increased efficiency and satisfied customers who feel valued by their financial institution’s personalized approach towards communication; making implementation a worthwhile investment for any business operating within banking or finance sectors today!

Conclusion

To sum it up, omnichannel support is a crucial aspect of modern banking and financial institutions. With the increasing demand for seamless customer experiences, providing personalized solutions across various communication channels has become more important than ever before.

By implementing an effective omnichannel strategy that focuses on addressing customers’ pain points and delivering tailored solutions that meet their unique needs, banks can improve customer satisfaction levels, and build trust and loyalty while also enhancing their reputation.

To ensure success in this journey towards omnichannel support, financial institutions must prioritize compliance with regulatory requirements such as AML/KYC processes, address validation, and ID verification to prevent fraudulent activities.

Adopting an all-encompassing approach to customer service through the integration of multiple channels into one cohesive platform that emphasizes personalization at every stage of engagement with customers will not only result in repeat business but also create lasting relationships between banks and their clients.

 

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Generational Shift in Banking

The Generational Shift is Redefining Banking Industry

Posted on | by Signzian

In the world of banking, there’s a new kid on the block: Generation Z. While the industry has been adapting to millennial customers for some time now, Gen Z brings a whole new set of challenges and opportunities that banks can’t afford to ignore. But it’s not just about catering to younger generations – older customers also have unique needs and preferences that must be considered. In this blog post, we’ll explore the generational gap in banking and how it’s affecting the industry. 

What is the generational gap in banking?

The generational gap in banking refers to the differences in attitudes, behaviors, and expectations of different age groups regarding financial services. Each generation has unique values and experiences shaping their money management approach.

For example, Baby Boomers tend to prioritize stability and security over risk-taking. They may prefer traditional banking methods and are likelier to value personal relationships with bankers.

On the other hand, younger generations like Millennials and Gen Z are more inclined towards technology-driven solutions. They expect seamless digital experiences that allow them easy access to their finances on the go.

The rise of social media also plays a significant role in shaping these generational differences. Younger customers increasingly rely on peer reviews before deciding where they bank or invest.

Banks must recognize these diverging attitudes to cater effectively to all age groups. The key is finding a balance between high-tech offerings for younger customers while not alienating older ones who still value human interaction above all else.

How has the generational gap in banking affected banks?

The generational gap in banking has had a significant impact on the way banks operate today. With three distinct generations – Gen Z, Millennials, and Gen X – each having different preferences and expectations regarding banking services, banks must adapt their strategies to meet the diverse needs of these groups.

One major effect of this gap is that traditional brick-and-mortar banks are losing relevance among younger consumers who prefer digital experiences. This means that banks need to invest more heavily in technology to stay competitive.

Another consequence is an increased focus on digital identity verification and know-your-customer (KYC) processes. Banks need to be able to verify customers’ identities quickly and securely, particularly as younger generations become increasingly adept at fraud prevention measures.

Age verification systems have become critical for financial institutions looking to appeal to younger customers while adhering to regulatory requirements. By implementing robust age verification protocols, banks can ensure compliance with legal obligations and protection against underage account opening or usage.

The generational gap in banking presents challenges for traditional financial institutions seeking to remain relevant in an ever-changing industry. However, understanding the unique needs of different customer segments, developing innovative technologies, and implementing effective KYC/AML protocols tailored to young people’s lifestyles will help them succeed going forward.

Gen Z versus Millenials versus Gen X

There’s no denying that different generations have unique perspectives on banking. Gen Z, Millennials, and Gen X have different attitudes toward money management and financial institutions.

Gen Z, born between 1997 and 2012, are digital natives who expect convenience and instant gratification. They prefer online banking over visiting a physical branch and demand mobile apps with seamless user experience. This generation is also more open to alternative forms of payment, such as cryptocurrencies.

Millennials, born between 1981-1996, are known for valuing transparency in their banking services. They want to understand the fees associated with their accounts and often prioritize socially responsible investments. However, they may struggle with debt from student loans or credit cards.

Gen X represents those born between 1965-1980 who grew up without technology but adapted quickly after its introduction. They value stability in their bank accounts and stick with traditional banks rather than fintech startups.

Understanding the differences between these three generations can help banks tailor their services accordingly to serve each group’s needs better. From digital identity verification systems for Gen Z customers to offering debt counseling programs for Millennials struggling with student loans – each generation presents unique challenges that require tailored solutions from banks.

Conclusion

The generational gap in banking is a complex issue requiring banks’ careful consideration and attention. As digital natives like Gen Z continue to enter the workforce and demand more personalized digital experiences, it’s clear that traditional banks must adapt to stay relevant.

By implementing age verification systems and utilizing customer data to personalize their offerings, banks can bridge the generational divide and meet the needs of all customers – regardless of age.

Ultimately, by embracing change and staying on top of emerging technologies, banks can remain competitive in an ever-evolving landscape while providing exceptional service to customers across all generations.

 

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Compliance in Banking

How To Make Compliance Your Bank’s Competitive Advantage

Posted on | by Signzian

Banking regulations are ever-changing, and staying compliant is essential for financial institutions, but it doesn’t have to be a burden. In fact, by leveraging compliance activities as a competitive advantage, your bank can increase its profitability and gain a leg up on the competition. In this blog post, we’ll look at how banks can leverage compliance to create an edge in the industry. We’ll discuss managing risk, using customer data safely, developing innovative products and services, and more—all while staying compliant with the law. So, if you want to make compliance your bank’s secret weapon, this blog post is for you!

Understanding compliance

Today’s consumers are looking for a banking experience that is personalized, convenient and offers value. In addition, they want to bank with an institution that understands their needs and is willing to work with them to find solutions. A recent study by Boston Consulting Group found that 43% of consumers would switch banks if their primary bank did not offer the digital capabilities they were looking for.

Banks must provide a superior customer experience to keep up with the competition. That starts with understanding compliance. Consumers expect banks to protect their personal information and comply with regulations. They also want transparency from their financial institution. They must know that their bank works in their best interest and protects their money.

Compliance is more than just following the rules. It’s about creating a culture of compliance within your organization. Everyone from the CEO to the tellers must comply with regulations. This can be achieved by establishing clear policies and procedures, providing training and education on compliance topics, and promoting a culture of ethical behavior.

When done correctly, compliance can be a competitive advantage for your bank. In addition, consumers will trust that you keep their best interests in mind and feel confident doing business with you.

The benefits of compliance in bank

The McKinsey Global Institute estimates that advanced analytics (AA) and artificial intelligence (AI) in banking could generate up to $1 trillion in annual economic value globally. Credit underwriting, fraud detection, and trade surveillance are some of the opportunities related to risk management. 

Banks are under pressure to do more to comply with rules and regulations in a world of increasing regulation. But, at the same time, they are looking for ways to improve their customer experience and grow their business. A compliant bank meets all the requirements of the regulators and provides an excellent experience for its customers.

There are many benefits of being a compliant bank:

  1. It allows you to avoid costly fines and penalties.
  2. It helps you build trust with your customers by showing that you are committed to protecting their information and meeting their needs.
  3. It can give you a competitive advantage in the marketplace by differentiating you from other banks that may not be as compliant.

Fourth, being compliant can help you attract and retain the best talent. Fifth, it can help you manage risk more effectively. And sixth, it can help you improve your bottom line.

So, consider these six benefits if you’re looking for ways to make your bank more compliant. They might make compliance your bank’s competitive advantage.

Compliance technology

Technology has always been crucial to compliance, from simple audits to more complex monitoring and analysis. But with the ever-changing compliance landscape, technology must constantly adapt to new regulations and threats.

That’s where compliance technology comes in. Compliance technology uses software and other tools to help organizations meet their compliance obligations. This can include everything from automating regulatory filings, tracking employee training, and monitoring customer interactions for signs of fraud or money laundering.

With the right technology, banks can meet regulatory requirements and gain a competitive advantage. By using technology to automate repetitive tasks, banks can free up staff time for more strategic work. And by using data analytics to identify risk areas, banks can proactively address potential problems before they arise.

When it comes to compliance, technology is your friend. Investing in the right tools can make compliance more uncomplicated, efficient, and effective—and give your bank a leg up on the competition.

Conclusion

Compliance is becoming increasingly important in the banking industry, and making it your bank’s competitive advantage can help ensure sustainable long-term success. By providing that your compliance strategy is up-to-date and effective, you can create an environment of trust with customers and regulators alike. Additionally, a clear understanding of regulatory requirements will enable you to adapt to any industry changes quickly, ensuring your unique competitive edge remains intact.

Identity Theft in Banking – Things you need to know!

Posted on | by Signzian

30% of consumers said that they had been victims of online identity theft is one of the surveys by Experian in July 2022. 

Identity theft is a serious problem, and with the rapid advancement of technology, it’s only getting worse. Every year, millions of Americans become victims of identity theft and financial fraud.

According to the FTC, identity theft and related fraud increased nationwide in 2021:

  1. More than 5.8 million fraud complaints were filed for the year, an increase of 19%.
  2. The financial losses from fraud increased by 77% from the previous year to more than $6.1 billion.
  3. Consumer identity theft complaints increased by 3.3% to just over 1.43 million.

While there are steps you can take to reduce your risk, it’s important to be aware of the tactics criminals use to gain access to your personal information. In today’s blog post, we will discuss how identity theft works in banking and what measures you can take to detect it. By understanding the methods criminals use and taking the necessary precautions, you can put yourself in a better position to protect yourself from potential identity theft.

What is identity theft?

Identity theft is when someone uses your personal information without permission to commit fraud or other crimes. Your personal information can include your name, Social Security number, date of birth, bank account numbers, credit card numbers, or other sensitive information.

1,434,695 identity theft complaints topped the FTC’s list of fraud complaints in 2021, accounting for about 24 percent of the 5,883,409 fraud, identity theft, and other complaints received. Imposter scams were the second most reported fraud category after identity theft, with 995,789 reports and $2.4 billion in losses—nearly double the $1.2 billion loss caused by the category in 2020.

Identity theft can happen in many ways: Phishing, smishing, spoofing, and vishing are some techniques Fraudsters use.

Phishing:

As a method of identity theft, phishing involves individuals unwittingly providing personal information that can be misused. Fraud is usually carried out by creating fake websites, emails, or texts that appear to be from a legitimate firm. 

On Feb 20th, 2023, a farmer from Rajasthan almost lost more than Rs 8 lakh to a cyber fraudster when his son clicked on a phishing link. In the past few years, cyber fraud cases have witnessed a significant rise. According to the EY report, 53% of respondents in India state that cybercrime and ransomware risk have increased in India in the last 1 year. 

Vishing:

Vishing (voice phishing) is an attempt where fraudsters try to seek personal information like Paytm Bank PIN, Paytm OTP, Card expiry date, CVV, etc. via a phone call. The miscreant acts as an employee from Paytm, the government, or a bank. He/she asks you for your KYC details. They will state various reasons, like reward points, free cashback, reactivation of account, etc., for this. These details are then used for accessing your account without your knowledge.

Smishing:

Smishing (SMS phishing) is when an SMS/Email/WhatsApp message is used to lure you to call back on a fraudulent phone number, visit fraud websites, or download malicious content via your phone. Fraudsters will send you SMS/Facebook Requests/WhatsApp messages to inform you that you’ve won some prize money, a cashback offer, or the like. They’ll ask you to share your Paytm account/Paytm Payments Bank account details. Unaware of what might happen, they will initiate fraudulent transactions using your account details once you do that.

How does identity theft happen?

There are a few ways that identity theft can happen in banking. One way is if someone steals your personal information, such as your Social Security or account number. They can then use this information to open new accounts in your name and rack up debt. 

Another way is if someone gains access to your bank account and makes unauthorized withdrawals. This can happen if your bank account number is stolen or if you have an online account that is not secure. 

Finally, identity theft can also happen if you receive a phishing email that looks like it’s from your bank. This type of email will try to get you to click on a link or download an attachment that will install malware on your computer. If you do this, the cybercriminal will have access to all of the information on your computer, including your banking information.

How can Banks Detect & Prevent Identity Theft?

The process of detecting stolen identities begins at the onboarding stage. Adding new customers can be risky for banks regarding digital onboarding – there is the need to satisfy regulations such as KYC (know your customer) and AML (anti-money laundering). These legal obligations must be obeyed to prevent any kind of financial fraud. Criminals often use false or synthetic IDs to deceive the process and open bank accounts, so confirming identities can be expensive – with costs reaching $35.2 billion in 2020. This is especially daunting for neobanks and challenger banks, who strive to make the customer onboarding experience quick and straightforward. 

With video KYC verification, banks can verify their customers’ identities remotely through a video call, which is quick, convenient, and reliable. As a result, businesses can detect potential fraudsters beforehand and eliminate the need for physical presence. 

Use Cases:

  1. By using video KYC, banks can onboard new users digitally via a video call, making the process more efficient and productive. 
  2. The real-time video call helps banks identify money laundering, identity theft, and terrorist financing while onboarding new users. 
  3. In any country where the Bank operates, they must ensure that their businesses comply with KYC & AML regulations. Signzy’s Video KYC verification helps businesses meet those regulations while avoiding being penalized.

Features: 

  1. Text Match is used to ensure PAN card data corresponds with Aadhaar records. Simultaneously, high-definition snapshots of the ID and video can be taken for comparison. 
  2. Documents no longer need to be stored since recorded videos, and captured documents can easily be retrieved. 
  3. Geo-Location capture and IP check detect Proxy or VPNs while scanning for spam or abuse reports in established blacklists. 
  4. End-to-end encryption is enabled for full data security, applying the most reliable security protocols.

Conclusion

Identifying identity theft and synthetic ID fraud starts with thorough identification verification. While most banks and financial institutions will have a robust KYC process that includes IDV, Signzy’s Video KYC will let risk managers work with real-time alternative intel and in-depth technical data points. 

The following are key advantages.

  1. Real-time enrichment is applied to all data.
  2. To save time and money, you can perform Video KYC checks.
  3. In the digital age, digital footprint analysis is becoming more important than traditional ID checks.
  4. You can catch more fraudsters by combining these with velocity checks and device fingerprinting.

Identity theft can be scary, and banks are one of the main targets for criminals trying to steal your identity. Through liveliness checks, image forensics, face matching, and randomized questions, Signzy utilizes artificial intelligence to perform comprehensive identity verification. The solution offers inherent safety by making the process directly between the bank, and the consumer and is completely paperless and contactless. 

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

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