KYC and Cybersecurity_ Protect your data from Cyber Fraud

1. 12/17/21, 4:53 PM KYC and Cybersecurity: Protect your data from Cyber Fraud Optimize Cybersecurity with the Pearls of KYC 16 Dec  By Tony Raval |  In Cybersecurity | Table of contents 1. How to Make Automated KYC Part of Your Cybersecurity Policy 2. Ways in which automated KYC can pair with your cybersecurity policy 3. How Including KYC measures in Veri?cation Process can help? 4. Automated KYC = cybersecurity 5. How Idmerit can help?    Cyber threats have become part of everyday life for individuals, governments and cybersecurity was limited to antiviruses and ?rewalls. In recent years, we’ve witne ransomware and malware protection and even identity protection to keep you an increased, so did cyber threats. With the cyber threats outpacing protection, it ha could no longer be limited to ?rewalls and antiviruses. https://www.idmerit.com/blog/optimize-cybersecurity-with-the-pearls-of-kyc/ 1/8

2. 12/17/21, 4:53 PM KYC and Cybersecurity: Protect your data from Cyber Fraud Knowledge-Based Authentication (KBA) reached its limits in the ?nance industry. information was available online, and cybercriminals now had easy access to KBA matters exceedingly complicated when millions of businesses started or moved only victims. Entire corporations and small businesses were under attack from cy weren’t the only problem. When ?nancial transactions went digital, so did money discovered that a bank in Germany was involved in the Panama Papers Scandal, overhauled for a more global approach. Know Your Customer (KYC) and Know Yo requirement for customer onboarding in ?nancial institutions.   How to Make Automated KYC Part of Your Cyb   Combining KYC with cybersecurity was not initially the goal when the ?nance ind action against money laundering. For banks and other ?nancial institutions, the KY customers cleared all the essential customer due to diligence security checks du But in PwC’s 2020 Global Economic Crime and Fraud Survey, ?ndings showed the in most industries were customer fraud and cybersecurity, respectively. This surv process failed somewhere during customer onboarding. Despite companies beg cybersecurity measures, the onboarding process remained virtually, pun intende treating threats as one-o? instances and only treating signi?cant threats rather th leaks. New KYC veri?cation solutions must be implemented across the board for indust commerce. Basic customer due diligence needs to broaden its scope to include  businesses. Customers and employees are the primary sources of risk, whether v Implementing security measures at key touchpoints in the onboarding process c veri?cation process. By pairing cybersecurity with automated KYC systems, you protect your system, stakeholders from potential bad actors within the system. Customers are vital to t https://www.idmerit.com/blog/optimize-cybersecurity-with-the-pearls-of-kyc/ 2/8

3. 12/17/21, 4:53 PM KYC and Cybersecurity: Protect your data from Cyber Fraud security should always be a priority, but customers also don’t want lengthy ID val protecting customer relations is ignoring Know Your Customer’s Customer (KYCC Enhanced due diligence was implemented to restructure the ?nance industry ide KYC veri?cation solutions. It included AML/KYC veri?cation that went in-depth fo comprehensive e-KYC policy. This incomplete policy was due to enhanced due d customers while still ignoring employees and KYCC. Due diligence should not be restricted to just customers but should apply to all e Spending millions on cybersecurity and KYC won’t reduce cyber threats if your K customers, ignores KYB and KYCC, and settles for basic ID card veri?cation. Cybe faster and seamless automated KYC integrated with AML compliance and cybers   Here are a couple of ways automated KYC can cybersecurity policy:   Increase Cybersecurity and KYC Knowledge and Awareness In PwC’s 2020 Global Economic Crime and Fraud Survey, lack of knowledge and the main perpetrators behind individuals, businesses, and industries taking the w Statistical and other research sites showed a common thread of mismatched ass execution. Lack of up-to-date available data was not the problem as government constantly monitored the cybersecurity threat indexes. The problem was that bus cybersecurity to in-house IT teams who 37% of the time, according to the PwC Su  Failed employee onboarding practices could increase that number, and when 34 positions, your entire IT team could end up working against you. Banks made great strides in this direction when they campaigned for PIN protect credit cards being vulnerable, whereas, in reality, their personally identi?able info education campaign to enlighten the customer on why you need to validate IDs, veri?cation process, and how this identity veri?cation system is protected against https://www.idmerit.com/blog/optimize-cybersecurity-with-the-pearls-of-kyc/ 3/8

4. 12/17/21, 4:53 PM KYC and Cybersecurity: Protect your data from Cyber Fraud Businesses should use available industry data and go deeper into employee and prudent questions during the onboarding process. Consulting with outside secur and monitoring their in-house cybersecurity teams would create an added layer   Improve Data and Documentation Management Phishing using Business Email Compromise (BEC), ransomware, and false docum pandemic. CEOs and other key decision-makers were the major targets of these created opportunities for cybercriminals to thrive, part of the blame can rest on b businesses did not think digital transformation would necessitate added digital se for sta?. Businesses assumed the pandemic wouldn’t last long. They also did not see thes ?nancially viable investment. Old habits of minimum due diligence coupled with screening allowed CEOs, CFOs, and other key signatories to be blackmailed and US alone. Businesses are tasked with building the adaptability to react prudently when und defense against future cyber threats yet develop an automated KYC process that customer onboarding risks. In tackling all those strategic areas and securing the d with the onboarding process, businesses, banks, and even large corporations ten these areas. Documentation and data security generally su?er as the process is either archaic arti?cial intelligence (AI) and machine learning technology allows businesses the with the security risk assessment and identity veri?cation API to analyze docume  learning give your KYC veri?cation software the ability to problem solve, adjust an   Invest in Biometrics Screening for Mobile ID Veri?cation Increases in mobile users seem to have slipped unnoticed by some industries. M of outside the ?nance industry and usually entails only verifying your phone num as part of any identity veri?cation system is practically non-existent. Cellphones a https://www.idmerit.com/blog/optimize-cybersecurity-with-the-pearls-of-kyc/ 4/8

5. 12/17/21, 4:53 PM KYC and Cybersecurity: Protect your data from Cyber Fraud many security features that make stealing them not worth the jail time. Attacks to any other secure digital device, with the owners’ permission. This invitation to atta emails, visiting shady sites, or unwittingly providing personal information. With su hackers choose to attack mobile services providers or weak mobile developers. Companies like Verizon and Apple believe that they are too large to experience a and statistics have proven that breaches can come from internal sources, busines access and KYC veri?cation process loopholes. Android phones have built-in sec information and device. Most smart devices have biometric scans for ?ngerprint, mobile ID veri?cation. Companies use biometric for restricted area access. Interla protocols into AML/KYC veri?cation for corporate mobile users can save CEOs bi   Database Cross-Referencing  Social media platforms collect vast amounts of demographic and behavioral data can be used to fact-check a customer’s identity and documentation. By adding th automated KYC process, your company will be decreasing the opportunities for f process.   Behavior Monitoring in KYC Sta? Training  Years ago, the role of KYC professionals was not clearly de?ned and constantly c making simple data inputs and physical checks to risk assessment and evaluator was unclear on their next evolution and how their role impacted its cybersecurity In the beginning, KYC sta? were required only to identify customers who were at  stringent HR policies did not consider employee onboarding, supply chain, or sup years, a few scandals, and 42 billion dollars later, it is apparent KYC sta? training w have a massive technological backup to achieve some semblance of onboarding identify fraudsters without the relevant cybersecurity training or technical suppor get e?cient KYC veri?cation process retraining. They are being outclassed and ou threats. You create an internal problem that you don’t screen and monitor your KY https://www.idmerit.com/blog/optimize-cybersecurity-with-the-pearls-of-kyc/ 5/8

6. 12/17/21, 4:53 PM KYC and Cybersecurity: Protect your data from Cyber Fraud Training KYC sta? and veri?cation system updates cannot be a budget opt-out in seen in the pandemic, it is in these tenuous moments that cyber criminals are mo that you should reach out for expert consultation on automated customer onboa monitoring, and KYC veri?cation software.   Keep an Eye on B2B Operations Know Your Business (KYB) is as vital as KYC, and Know Your Customer’s Custome dealing with small to medium enterprises. When engaging with established corp assume everyone is doing their part for AML/KYC veri?cation. For businesses, yo stricter than onboarding a customer. Whereas a customer will always be a single entity or multiple entities held in trust by a single person or corporation. A busine a?ect bank signatory access, and their cybersecurity issues can immediately bec   How Including KYC measures in Veri?cation Pr   Include KYCC measures in your KYB veri?cation process by reviewing their data p and onboarding process. Learn more about critical decision-makers, silent partne your new B2B client of the risks of non-AML compliance on both ends and educa as part of ongoing customer relations. Help your new B2B customer protect their while building a lasting partnership against bad actors.   Automated KYC = Cybersecurity    When one speaks about cybersecurity products or protection, KYC isn’t what com ?rewall protection and antiviruses are what one thinks of when discussing cybers has proven to be a proactive means of tackling cyber threats. https://www.idmerit.com/blog/optimize-cybersecurity-with-the-pearls-of-kyc/ 6/8

7. 12/17/21, 4:53 PM KYC and Cybersecurity: Protect your data from Cyber Fraud As with all processes, for automated KYC veri?cation to be successful, strict impl and data management are needed. KYB and KYCC can’t be on the back burner o Neither should corporate leaders use mobile ID veri?cation solutions or other tec training should be treated with the same importance as B2B customer onboardin distribution chain. There is a lot of work to include automated KYC as part of customer onboarding identity veri?cation systems, and many need to update outdated hardware. The p paradigm, increasing cyber threats while decreasing economic activity in some in protection and education on the KYC veri?cation process. And through it all, your the latest trends and threats.   How Idmerit can help?   For even large established corporations, that is a daunting task. Corporations hav solutions but lacked the human resources, interest, budget, or infrastructure to u their own cannot handle all the KYC requirements without outside assistance. IDM gets your business AML compliant using automated KYC practices.  https://www.idmerit.com/blog/optimize-cybersecurity-with-the-pearls-of-kyc/ 7/8

8. 12/17/21, 4:53 PM KYC and Cybersecurity: Protect your data from Cyber Fraud Tony Raval Tony Raval brings more than 15 years of leadership in data techn IDMERIT, headquartered in Carlsbad, California. He leads an exec veterans to execute on his passion of creating a global data unive intelligence. IDMERIT’s competitive success has come from the c border transactions, for which Tony and his team have developed progressive technology. The company was launched as the resu with a leading global ?nancial institution, whereby the company w multiple elements to create a comprehensive, and yet, frictionles intelligence to companies such as Google, SalesForce, and HP as government and other sectors seeking a superior partner in com Master’s Degree in computer engineering and data sciences, is a Organization San Diego and dedicated mentor to new entreprene enjoys meditation and running, and he and his wife Sonal recentl birthday.  https://www.idmerit.com/blog/optimize-cybersecurity-with-the-pearls-of-kyc/ 8/8