The role of EKYC services in India's cybersecurity.
Tags: programming, api, softwaredevelopment, software
Published: 2024-02-07 18:11:29

Cybersecurity and digital KYC have been two different worlds for the longest time. Cyber security aims to protect organisations from external threats like antivirus, firewalls, etc. On the other hand, Aadhaar-based KYC has been a part of the company's customer onboarding process to ensure the new user is eligible after passing the security checks. 

 

The amalgamation of [Aadhaar eKYC](https://meon.co.in/ekyc-solution?utm_source=Backlink&utm_medium=Website_Organic) and cyber security is another byproduct of the coronavirus pandemic. Online businesses gained momentum as the lockdown forced individuals to stay inside their abodes. It also made cyber threats a part of everyday life. Nearly 71% of IT and security professionals worldwide have reported an increase in security threats and attacks since the pandemic outbreak.

 

## What is digital KYC?
 

Financial institutions in the global economy are more vulnerable than ever to criminal activity. Electronic Know Your Customer (KYC) standards exist to protect financial institutions from fraud, corruption, money laundering, and terrorist financing. 

In this process, financial institutions use the [eKYC service](https://meon.co.in/ekyc-solution?utm_source=Backlink&utm_medium=Website_Organic) for their customer verification, where they do not need to bring physical documents. Every task will be done online, and they must verify their identity through PAN and Aadhaar.

 

## eKYC includes:
 

Establish customer identity and understanding of the nature of customer activities. Ensure there is a legitimate source of funds assessing Money Laundering Risks; hiring an eKYC service has always been important for businesses. It was mandatory for regulated entities, but with more excellent adaptation to technology, it has become more critical for every business, especially when most services are offered online.

 

It acts as the initial checkpoint for the customer as it contains personal identification information such as biometrics – fingerprint, IRIS and face. They ensure that the specifications are verified before providing any services.

 

## How do eKYC services help with cyber security?
 

57% of enterprises have reported fraud-based losses related to account opening and acquisition. It means that cyber threats are infiltrating KYC processes, and an additional layer of security is needed. Today, [eKyc service providers](https://meon.co.in/ekyc-solution?utm_source=Backlink&utm_medium=Website_Organic) offer secure solutions for better cyber security. 

 

Using Artificial Intelligence and Machine Learning technologies, facial realism solutions are helping prevent fraud by enabling a foolproof verification process. Earlier, it seemed impossible to test facial liveness without physical verification, but today, it can be done with a selfie or even a quick video call. Social media platforms can deploy such technologies to prevent cyber security fraud.

 

## How do KYC services ensure seamless identity verification?
 

Companies and businesses can easily integrate KYC APIs and ML algorithms. These can be easily integrated into the core business applications of any organisation. It enables the engagement of verified customers and a seamless journey for the customer. 

 

Furthermore, AI and ML technologies are being used to validate the documentation. Optical character recognition (OCR) extraction and document verification are also emerging. They give companies the right to take distorted photos. OCR software helps recognise and extract letters from images and assemble them into words and sentences. It is extremely helpful in checking the authenticity of the customer's documents.

 

## Role of governments
 

Governments can play an active role in helping businesses check customers' identities. One such way is to have a unique ID like Aadhar Card in India. In addition to setting up unique IDs, the willingness of governments to extend the required APIs to the private sector wherever possible can ensure that KYC is done. Promoting eKYC services by our government will ensure the elimination of cybersecurity fraud in the next couple of years.

 

## Bottom Line
 

E-KYC service providers offer [digital KYC](https://meon.co.in/ekyc-solution?utm_source=Backlink&utm_medium=Website_Organic) that can now be done in seconds and at an affordable cost, using modern technology to enhance cyber security. We now live in a world where KYC and cyber security co-exist. The shift in the security paradigm following the pandemic has forced companies to ask relevant questions about cybersecurity. By integrating seamless and secure processes, they want to preserve their customers, data, and reputation. As a business, you should always be cautious and look to technology solutions to ensure cyber security during KYC processes.

Original Reference: [https://medium.com/@meon_technologies/ekyc-services-role-in-indias-cyber-security-23198c15696f](https://medium.com/@meon_technologies/ekyc-services-role-in-indias-cyber-security-23198c15696f)