Traditional KYC processes are facing major challenges.
Who is affected?
KYC is a legal requirement for banks and financial service providers. It is used to verify the identity of customers before accounts are opened or transactions carried out. This helps to prevent money laundering, terrorist financing and other illegal activities.
Insurance companies use KYC to verify the identity of their customers and ensure that no fraudulent claims are made.
In some countries, telecommunications companies require KYC procedures from their customers before issuing SIM cards or concluding mobile phone contracts. This is to prevent SIM cards from being used for illegal activities.
Platforms that raise funds via crowdfunding use KYC to verify the identity of investors and project initiators and ensure that no fraudulent projects are launched.
In the real estate sector, KYC is used to verify the identity of buyers and sellers and to prevent money laundering through real estate purchases.
Why do traditional methods no longer work?
Manipulated biometric data
KYC procedures based on biometric data such as facial or voice recognition can be easily fooled by deepfakes. With advanced AI tools, fraudsters can create deceptively real replicas of faces and voices that are not recognized by most current systems.
Forged documents
Traditional KYC procedures often rely on physical or digitally submitted documents that can be forged or manipulated relatively easily. The verification of such documents is often not robust enough to withstand modern forgery techniques.
Social engineering
Criminals are using increasingly sophisticated methods to deceive victims and companies. By using deepfakes in combination with stolen identities, fraudsters can carry out deceptively real, personalized attacks that make it difficult to detect fraud.
Conclusion
There is an urgent need for action as traditional KYC methods are no longer able to cope with the increasing threats of deepfakes and identity theft. DeepDetectAI makes KYC secure again by using advanced AI technologies to detect tampering and anomalies. Our real-time verification and continuous identity monitoring provide comprehensive protection against the complex challenges of modern cybercrime, ensuring that KYC processes remain reliable and secure in the future.