A cultural as well as religious celebration among billions of people around the globe, Christmas, is the happiest time of the year celebrated on the occasion of Jesus Christ’s birth on 25th December. As 2020 suffered from the COVID-19 pandemic, this year’s celebration of this occasion might be different from the past few years. People will tend to avoid crowded areas and physical contact with each other, resulting in them will avoid visiting shopping malls and banks.
The amount of online customers is rapidly increasing with every passing day during this pandemic. According to a study, 1.92 billion people purchase goods and services online. The eCommerce industry and online banking are evolving day after day especially during this happy time of the year. That’s why KYC solutions are adopted by a wide range of organizations including:
- KYC verification
- Face verification
- Document verification
- Address verification
- AML screening
- Two-factor authentication
Let’s dig deep into the blog post to find out how technological advancements are enhancing the customer’s experience and prevent online users from fraudsters.
Global Impact Of COVID-19 Crisis
Hackers are taking advantage of this chaos of the global COVID-19 pandemic. They are always in search of new tactics to manipulate financial transactions. This can also leave a huge impact on this year’s Christmas. Those tactics mainly include collecting payments from a fake covid-19 pandemic, tricking people to donate to fraudulent charities, and fake online payments. This results in generating a large amount of black money. By using the service of KYC verification, such fraudulent activities can be avoided, providing customer due diligence with a high rate of accuracy and efficiency.
Enhanced eCommerce Industry
Online shopping is the most popular activity worldwide. Online customers rose rapidly during this COVID-19 pandemic, which ensures the fact that during this year’s Christmas celebrations, there will be a great boost in the online customer’s traffic. Hackers will surely keep an eye on it to manipulate the process of online payments. The eCommerce industry is adopting online identity verification and KYC solutions to fight a great battle against hackers. Customer’s credentials and online payment methods are closely monitored by the authorities to identify PEP’s. Also, address verification is performed before delivering any parcel to the customer. That’s how the eCommerce industry maintains the high quality of the customer’s database.
Online Payments – A new Normal
The world is growing rapidly towards digitization. People are using P2P i.e peer to peer payments and e-wallet apps nowadays for online transactions in the digital marketplace. These apps are popular in Europe and Asia, but during the COVID-19 pandemic, this is becoming increasingly popular in the U.S. too. These applications are armed with strong security features and KYC verification solutions. The customer’s payment method is closely monitored to identify whether the payment is done by a real customer or a hacker. Innovative KYC mechanisms are utilized by a wide range of organizations for customer due diligence for the purpose of digital identities. The fintech industry ensures the authorized access of the customer to fight against various cybercrimes.
Advancement In Digital Banking
The customer of today’s era of digitization demands more advanced mobile services from financial sectors. As a result, more and more banks are prone to digitization, automation, and online banking. But sadly because of the high rate of fraudulent activities, about 53% of the digital banking customers felt negative because of poor customer experience. Keeping in mind such negativity, innovative AML, and KYC solutions are adopted by financial institutions for customer onboarding and identity verification.
Numerous factors are the reason for the advent rise in online fraud which ensures the fact that there is a dire need for such services that provide customers with enhanced security features. Thanks to the identity verification and KYC solutions which is a great measure to prevent fraudulent activities. Technologies like machine learning and artificial intelligence are used by organizations to guard against hackers who tend to attempt data breaches. Also, risk assessment and customer transaction patterns help to provide a better customer experience and to determine whether it is an honest customer or hacker behind the process.