“He sees you when you’re sleeping.
He knows when you’re awake.
He knows if you’ve been bad or good.
So be good for goodness sake.”
When Santa Claus is coming to town, you better be sure he knows who is naughty and who is nice. But, when it comes to your customers, can you say the same thing?
Identity theft and fraud are the fastest growing crimes in the US. It is now more important than ever to ensure the “nice” customers gain access to your services while leaving the “naughty” ones behind. To do this, it is important to implement both Know Your Customer (KYC) Rules as well as a comprehensive fraud prevention solution.
What are Know Your Customer (KYC) Rules? KYC is the process by which a bank or financial institution checks the identity, background and other aspects of the source of wealth of potential and existing customers. Legislation and regulation require firms to obtain evidence of an identity of a customer at take-on and to keep a record of that evidence for as long as there is a relationship with the customer. For more background on KYC Rules, go to: https://www.idology.com/resources/know-your-customer-kyc-rules/
KYC rules are part of the Customer Identification Program (CIP) implemented after September 11, 2001 and included in the USA PATRIOT Act. The Customer Identification Program set out a series of rules and regulations requiring financial institutions to thoroughly and properly identify, verify, and authenticate new customers opening accounts, in order to better keep tabs on the money flowing in and out of America’s banks and financial institutions. For these institutions and organizations, it is of the highest importance to know your customer. If you do not know your customer, you could end up inadvertently disobeying federal law.
However, simply meeting the requirements set forth in CIP and KYC is no longer enough. Cunning fraudsters have learned what it takes to pass these barriers, leaving your business at risk. Implementing a comprehensive identity verification and fraud prevention solution is fundamental in preventing fraud and mitigating risk. The key is finding a solution that evolves as the fraud landscape changes. Because, as we all know, the “naughty” ones are always looking for new ways to access your products or services.
So, if Santa Claus knows if your customers are naughty or nice… shouldn’t you?
Learn more about how IDology helps organizations meet KYC and CIP compliance while also fighting fraud.