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Here's why you need a fraud detection system that's designed to detect and monitor the actions of fraudsters to manage dangerous actions of intruders.

The importance of using a quality fraud detection system

KYC is an organizational and administrative, software or software and hardware solution that is designed to detect and monitor the actions of fraudsters, manage potentially dangerous actions of intruders. The key recipients of such solutions are electronic payment systems, banks, clearing centers, etc. In today’s world, every financial institution must comply with KYC automation identity verification as banks and institutions that neglect the customer identification program are subject to significant fines and penalties.

How KYC Works

Software for KYC check works on the principle of collecting information to compile a database. This obliges all financial institutions, including cryptocurrency exchanges, to identify and verify the identity of each client. One of the main requested data about the user is

  • Full name
  • Date of Birth
  • e-mail
  • phone number
  • country and address of residence
  • ID (passport, driving license, etc.)

The KYC automation procedure is a multi-stage operation that includes the collection and analysis of customers’ personal information.

KYC check does not rely on historical data for all transactions, but on the actions of a particular client in isolation from the rest, determining its typical features and actions. If a client makes a transaction that does not fit into the pattern of his behavior, the system gives a signal about the need for verification.

The requirements and standards aimed at implementing the principles of KYC automation are growing every year, the ability to instantly access the most important risk data is constantly improving.

Basic principles of the AML service

AML (Anti-Money Laundering) – recognition of money laundering schemes based on the analysis of aggregated data.

The AML policy on the crypto exchange is implemented to identify funds obtained by criminal means, anti-money laundering). It includes a wider set of measures than KYC:

  • transaction monitoring
  • checking crypto for purity (crypto-compliance)
  • risk assessment
  • verification of bank cards etc.

As technology advances, so do new methods of money laundering. The AML software aims to recognize behavior that may be considered suspicious. Examples of such behavior include large money transfers, repeated deposits into an account, and cross-checks of users on wanted lists.

Maintaining a clean business profile, authenticating customers with AML and KYC automation will help you move forward with regulatory compliance, as well as deter scammers from attacking your company.

One of the best fraud prevention platforms to date

To feel confident in the modern market, novice sellers need to carefully choose an anti-fraud solution. One of the most reliable choices of KYC check service can be provided by the Covery online store, which has gained wide popularity in Europe and the USA.

The solution is ideal for risk analysts, payment managers, anti-money laundering specialists, business analysts and data scientists.

With this online tool, users are offered a pre-built, regulatory-compliant KYC check with experts help.

The main advantages of this anti-fraud tool

  • Covery includes KYC Automation procedures by implementing up-to-date PEP lists and sophisticated risk management logic. Thus, AML and KYC work in a completely autonomous mode, saving you time and money.
  • Online tools such as KYC Automation, GDPR and PSD2 enjoy global coverage of international databases with daily data updates.
  • Democratic pricing will allow you to use the software efficiently and productively.
  • Device Intelligence technology deserves special attention – it is capable of collecting device fingerprints and data about it over a long period of time.
  • In-depth analysis of all actions. When high-risk suspicious behavior is detected, the system can dynamically modify the workflow to increase security. It also supports the KYC automation process without allowing failures to interfere with the stability of the system., etc. 

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