Online Identity Verification
- TYPE: Combined Session DATE: Thursday, May 11, 2017 TIME: 17:00-18:00 LOCATION: AMMERSEE II
Fraud tactics are constantly evolving, as are the tactics to prevent fraudulent activity in the banking sector. Passports, for instance, employ sophisticated techniques to prevent identity fraud. This means that they are often used for the know your customer (KYC) processes that financial service providers need to adhere to in order to on-board new customers. Furthermore, these processes are becoming more stringent under new proposed legislation. The EU’s AML4.1 directive for example expands the scope of regulated organisations and dramatically increases the penalties for non-compliance.
Unfortunately a ubiquitous, trusted document such as a passport will attract attention from fraudsters looking to create a fraudulent credential that will not just pass visual inspection, but a careful, rigorous one. The number of lost/stolen passports in the EU alone has doubled from 16m in 2010 to 34m today.
To combat the risk of fraud the techniques banks need to use to reveal fakes must evolve. It must acknowledge these two things:
- More and better fraud - The number of forged passports seized at UK borders has reached a five-year high, with nearly 1,100 being confiscated in 2014. Not only has the volume increased but the quality of forged documents has in tandem.
- Digital – At present most banks need customers to present passports and other documents at a branch. With branches closing steadily across Europe and banks increasing their digital channel investment, remote KYC verification is imperative.
Forward looking banks are using mobile capture and artificial intelligence (AI) to not just acquire and identify falsified documents, but also adapt to changing fraud techniques and cut down on false positives. In this context, consumers would be asked to submit a photo of a passport or other document through a digital channel – like mobile - rather than ask, often under skilled, tellers at branches to verify documents. Using AI banks can distil 20 years of experience and the combined expertise of cross-border agencies, governmental organisations and law enforcement into its fraud detection measures.
This proposed panel topic will look at how cloud-based image recognition and AI based machine learning can help financial institutions cope with the demands of impatient customers, new KYC legislation, and the threat of fraud.
- ID fraud is on the rise and becoming more sophisticated
- Despite the rise of digital based eID’s, paper-based identification will remain the default option in many European countries for the foreseeable future
- New regulations mean that doing KYC manually is no longer a viable option
- Customer demands and cost reduction is driving banks to explore remote, digital on-boarding
- The cycle where new fraud techniques are discovered and the information fed to those performing KYC is too slow and imprecise
- AI is not just a preferable to verify personal ID documents – it is a must in order to keep pace ahead of ever-evolving fraud techniques
- Registration fee:
- Contact person:
Mr. Levent Kara
+49 211 23707710
- May 09 - 12, 2017 Munich, Germany