在您的入职技术栈中建立数字信任

$500Billion As the threat of financial crime grows, with fraud costing nearly $500 billion in 2023 andglobal flows of illicit money exceeding $3 trillion,1banks and other financial institutions areat the vanguard of preventing fraud and tackling money laundering. With so much at stake, The cost of fraud due tofinancial crime in 2023 Compliance with know your customer (KYC) and customer due diligence (CDD)obligations is a major undertaking — one which banks and financial institutions cannotafford to get wrong. Being able to document that robust and consistent procedures arebeing followed from start to finish in the customer onboarding process and ongoing $3TrillionIn global flows of illicit Given the scale of the risk and the increasing sophistication of criminals, combined withthe rise of identity theft, synthetic IDs, money mules, and scams among the prominentthreats, financial institutions must be ever smarter about how they identify and counter Carrying out manual internet searches to find critical information is both time-consumingand open to the risk of a “false positive” outcome or a vital piece of the puzzle gettingmissed. Implementing a robust tech stack provides a solution: empower risk and In this white paper, we explore how banks and other financial institutions can build “digitaltrust” into their onboarding processes and transaction procedures via a fit-for-purpose The role of digital trust in Criminals are exploiting digital technology, including artificial intelligence (AI), to perpetrateconvincing frauds. Banks and credit unions must fight fire with fire. Customers andregulators must be confident in their bank’s ability to verify their transactions and protecttheir personal data at all times. Using advanced tech tools, they can mitigate risk and build What is digital trust? Digital trust refers to an organization’s activities to provide a safe environment forcustomers’ digital interactions by protecting users against suspicious account creation, For financial institutions, digital trust includes: Security The ability to carry out a digital transaction safely. Privacy and data integrity The ability to transact without giving an opportunity to misuse someone’s Identity The ability to protect the true identity of the user. Risk management The ability to identify and mitigate cyber risks in time. Accountability Taking responsibility in case of fraud by acting swiftly to take corrective action. Source: Feedzai Digital trust takes the concept of “Know Your Customer” and extends it to mean “Know YourUser” so bad actors can be spotted and blocked before they have a chance to commit a crime. It means staying alert to risk throughout the customer lifecycle with proactive, ongoing riskmonitoring and tools to detect if people’s credentials have been stolen or faked, or if thecircumstances of individuals have materially changed (e.g. new names, addresses, adverse In this way, digital trust builds institutional credibility and enhances the customer experience. Building a tech-enabled onboarding framework Financial institutions are required by law to carry out a customer identification program (CIP)to verify the identity of individuals wishing to conduct financial transactions with them and to Keeping up with — or ahead of — the criminals requires a well-stocked toolkit of anti-fraudcapabilities in which the right tool for the job is deployed at each step of the onboarding As banks and financial institutions build and maintain their onboarding frameworks, they mustconsider what risks could emerge at each stage and what questions they need to ask (and •Is this a real person? •Is it the right person? •Is it one person? •Does this information belong to correspond to them? •How risky are they? •What does their background look like? •Have they ever been accused of, or associated with, fraud? Where are they going to get this information? The reality is that it could come from a plethoraof sources — something which has both positive and negative implications. Positive becauseit’s likely that the truth is out there somewhere in the vastness of the internet. Negative because Unless, that is, you have the right solutions in place to help you unearth what you need and tomake the information gathered usable and meaningful so that you are not overwhelmed byreams of data — both valuable and worthless — which you must sift through and evaluate. Tools for ID validation may need to mine public records to match up names with Social Securitynumbers, birth dates and addresses, or be able to verify documentation. Ensuring an individualis not subject to any sanctions, is not a politically exposed person (PEP), or checking if they have Once there is a relationship in place, monitoring those issues on an ongoing basis takesconstant vigilance, so being alerted to changes around sanctions or criminal charges, analyzing You need tools that give you complete, relevant information that’s up-to-