January 28, 2022

Why Does the Financial Regulatory Landscape Need KYC Compliance?

When we talk about the financial sector, it is riddled with bad actors looking for attractive opportunities to bank on. Since consumers are turning towards the digital space, it has become essential for businesses to carry out verification measures to combat digital fraud and identity theft – which is a growing concern these days.  Criminals use the same technology used to develop security systems, to hijack user identity. They usually reverse engineer the solution and use it for their own gains.

Banks and insurance firms are a potential target of these cyber actors and have to deal with them daily. That being said, these cyber criminals need to be stopped at the earliest to prevent information of legitimate users from being compromised. To come up with a solution, regulatory authorities impose Know Your Customer KYC compliance to make sure the legal financial system works smoothly, and that fraudsters are caught off guard, allowing businesses to streamline their operations.

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