Cybercrime is surging during the COVID-19 pandemic as fraudsters seize on increased online activity to steal consumers’ sensitive personal details. As much as 22 percent of consumers have now been targeted by COVID-19 digital fraud scams, driving a mounting need for new ways to mitigate digital fraud risks.
FinTech firms and government bodies are responding to the wave of cybercrime by developing new anti-money laundering (AML) and know your customer (KYC) technologies, particularly those leveraging biometric authentication factors. This has led many RegTech firms to receive impressive amounts of funding, and industry analysts now predict that the global AML solution market could reach a valuation of $3.6 billion by 2024.
The June Digital Identity Tracker®, explores the latest developments in the world of digital IDs, including how biometric technology is being leveraged to enhance AMC/KYC compliance around the world.
Around The Digital ID World
RegTech firm Trust Stamp, which recently launched a new biometric and location tracking identity verification solution, has secured $1 million after just two days of its initial public offering (IPO). The success of this Series A funding underscores the broad market demand for digital AML/KYC technologies that have risen amid the pandemic.
Other companies are adopting biometric identity verification solutions from third-party FinTechs. Equifax is partnering with the reg HooYu to provide its users with AML/KYC-compliant digital onboarding services, for example. The list of HooYu solutions that will be newly available for Equifax users will include biometric-enabled identity verification tools such as those based on users’ digital footprints or even their selfies.
The Securities and Exchange Board of India, meanwhile, has named eight official eKYC providers for India’s Aadhaar system, including the Bombay Stock Exchange and Central Depository Services, among others. These institutions will now be able to provide Aadhaar-based identity verification solutions, which could help reduce the costs of AML/KYC compliance measures.
For more on these and other digital identity news items, download this month’s Tracker.
Cottrell Title & Escrow On The Increasing Adoption Of Biometric Notary Services
Digital real estate closings have been available for years, but state laws have required that notary processes be done in-person and by submitting paper documents. But that all changed when the COVID-19 pandemic forced brick-and-mortar offices to shutter and business had to go online. For this month’s Feature Story, PYMNTS spoke with James Schlimmer, managing partner of Naples, Florida-based title company Cottrell Title & Escrow about remote online notary (RON) services adoption during and after the pandemic.
Deep Dive: Using Biometrics To Enable And Enhance AML/KYC Compliance
Conducting RON sessions is one matter, but ensuring that they are AML/KYC-compliant is quite another. This month’s Deep Dive focuses on how the COVID-19 crisis has laid bare the limits of legacy notary methods and how biometric technology is being leveraged to enhance the digital security of RON services.
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