KYC (Know Your Customer) / KYB (Know Your Business)
Know Your Customer (KYC) is a regulatory process requiring businesses to verify customer identities before providing financial services. KYC helps prevent money laundering, terrorism, fraud, and financial crime. KYC refers to the corresponding information within the business – the deals made, with who, processes followed and potential KYC processes are used to determine the true identity of a customer and the type of activity that is normal and expected, and rely on other considerations such as Knowledge-Based Authentication in order to pass authorisation requirements.
Applications
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
Advantages
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
Challenges
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
