What's KYC fraud and how to stay safe from this scam
identity fraud. One of the most prevalent forms of cybercrime is Know Your Customer (KYC) fraud, where cybercriminals exploit weaknesses in the identity verification process. KYC fraud is evolving rapidly, presenting new challenges and threats to individuals and businesses.
“KYC, a critical component in financial institutions and other industries, helps verify the identity of customers and ensures compliance with regulations. However, fraudsters are continuously finding new ways to bypass these checks and steal personal information or engage in criminal activities. Here are some emerging trends in KYC frauds: synthetic identity fraud, deepfake technology, biometric data theft, SIM card swapping and insider threats," Lalit Mehta, Co-Founder and CEO, Decimal Technologies said.
Unmasking KYC Frauds
KYC is an essential aspect of the financial and business world, designed to verify the identities of individuals engaging in various transactions. From opening a bank account to availing online services, KYC procedures are in place to ensure the legitimacy of the parties involved.
However, cybercriminals have become increasingly sophisticated in exploiting the digital channels through which KYC processes are conducted. KYC fraud typically involves the theft of personal information, such as Aadhaar details, PAN numbers, or even biometric data, to impersonate an individual.
The Threat Landscape
In recent years, KYC fraud has seen a surge, with cybercriminals targeting both individuals and businesses.
