Identity verification and KYC (Know Your Customer) Compliance are critical to banking security, particularly in the age of remote onboarding solutions. In December this year, the European Commission released a report on existing remote onboarding solutions in the banking sector and the importance of mitigating risks, such as the potential for fraud, identity theft, and cyber-attacks.
A key way to prevent these risks is through robust identity verification. For instance, biometric authentication can help banks accurately verify a customer's identity before allowing them to open an account remotely. KYC checks can also help prevent fraud by ensuring that customers are whom they claim to be.
Banks should also ensure that they are complying with relevant regulations and standards. In the EU, QTSPs (Qualified Trust Service Providers) as Evrotrust can help banks meet regulatory requirements such as GDPR and PSD2. These requirements can include encryption and other technical measures to protect customer data from cyber-attacks.
It's also important for banks to train employees to be aware of the risks associated with remote solutions and to implement appropriate mitigating controls. Regular security testing and monitoring can help identify and address vulnerabilities.
In conclusion, the European Commission report underscores the importance of assessing risks associated with remote onboarding solutions, including identity verification and compliance with regulations such as KYC, PSD2, and GDPR. By implementing appropriate mitigating controls, such as biometric authentication and employee training, banks can help prevent fraud, identity theft, and other risks associated with remote solutions.
Evrotrust is a qualified trust services provider (QTSP) that offers a reusable digital identity. Our identity verification process is fast, user-friendly, know-your-customers (KYC) and anti-money-laundering (AML) compliant. Learn more about our services, get in touch with our team now!