Know your customer, or KYC, is an essential business tool for identifying fraudulent activity before it becomes a threat to a company's finances and reputation. Unfortunately, the traditional KYC verification methods no longer have a place in a progressively digital business environment. Thankfully, in the current day and age eKYC services are readily available - a cutting-edge approach ensuring that fraudulent activity is evaded with real-time automated solutions. eKYC services are accompanied by two others: eRICA and eFICA, all of which equip a company to efficiently manage identity theft and account fraud and high-risk customers.
eKYC, eFICA, and eRICA: what are they?
The modern electronic approach combines varied levels of digital verification processes, each with the ability to enhance business protection procedures and create seamless customer onboarding experiences. Learn more about each process:
eKYC
eKYC is a digital customer verification process that offers round the clock fraud prevention solutions, giving businesses the opportunity to validate their customers’ details in an instant. Making use of identity verification software including facial verification and PEP screening, electronic KYC verification can swiftly confirm the authenticity of client information, enhancing the customer journey and streamlining the onboarding process. Alongside other automated processes such as eFICA and eRICA, businesses have access to all the tools necessary to protect themselves against financial – and reputational – damage.
eFICA
FICA was a manual process introduced by the government as a means of fighting financial crime such as money laundering and tax evasion. Like eKYC, eFICA too validates customer details in an instant via automated procedures, removing the risk of human error caused by manual processes. Using sophisticated software such as Identity Verification Services (IVS) and Bank Account Verification (AVS), businesses can now cross-check customer information against data stored in a range of trusted sources including the Department of Home Affairs and various South African banks and bureaus. Through digitised processes, businesses can effectively avoid the risk of onboarding clients with fraudulent information, enhancing their security and ensuring FICA compliance.
eRICA
The third electronic approach in this trio is eRICA. RICA, as many know, is the South African legislation governing the interception of communications. Once completely manual, RICA has now become eRICA, a paperless and contactless method of ensuring security throughout the onboarding process. Customers are vetted using various biometric services including facial verification for liveness detection, and IVS, once again cross-checking their information against data obtained from various reliable data sources. Employing automated strategies, businesses can streamline their verification processes and protect themselves against fraud in real-time.
The future of integrated electronic solutions
Now more than ever, businesses can no longer risk being obstructed by the lengthy duration and unavoidable errors of manual processes. It is essential that manual in-person verification becomes a thing of the past, and that moving forward, businesses equip themselves with effective automated and remote solutions. The modern integrated eKYC, eFICA, and eRICA procedures refine the identity authentication processes through an advanced digitized approach. By interlinking these electronic processes, including an array of other means of verification, businesses of the future will elevate their safeguards and drastically reduce their risk of being exposed to fraudulent activities.
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