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In celebration of International Identity Day on September 16, Ideco is proud to support global efforts to ensure that identities are trusted, protected, and verifiable. As digital transactions continue to grow, the need for secure identity verification has never been more urgent.
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In response, Ideco has launched its innovative Electronic Know Your Client (eKYC) solution, designed to safeguard both businesses and individuals from the rising threats of identity theft and fraud. By providing real-time biometric verification and seamless integration with government records, Ideco’s eKYC solution plays a vital role in securing the future of identity protection.
By offering advanced biometric identification based on fingerprints and face, Ideco’s eKYC can empower every business to protect themselves and their customers against identity theft, financial crime, and regulatory non-compliance, while aligning with the global focus on identity protection and security.
The Identity Day (ID Day) Campaign seeks to gain global recognition for September 16 as Identity Day, emphasising the critical role that verifiable proof of identity plays. Despite being a basic human right and a practical necessity, this is the only day globally dedicated to identity.
The selection of September 16 (16.9) is symbolic, referencing UN Sustainable Development Goal 16.9, which aims to ensure that everyone has a legal identity, including birth registration, by 2030.
As businesses and individuals confront increasing risks of fraud, identity theft, and financial crime, Ideco has launched its Electronic Know Your Client (eKYC) solution. This innovative tool offers reliable identity verification processes, designed to safeguard both businesses and their clients against these growing threats.
In 2020, financial institutions faced over $10.4 billion in fines for non-compliance with money laundering and data protection regulations. Adopting eKYC reduces fraud risk by up to 50% and improves customer loyalty by up to 30%. Automation can also save up to 25% in operational costs. By 2025, it’s estimated that 80% of KYC processes will be fully digital.
Know Your Client (KYC) has evolved from a recommendation to a vital requirement for businesses, particularly those handling sensitive information. KYC ensures that clients are who they claim to be, helping to prevent fraud, money laundering, and other illicit activities. Failure to implement robust KYC protocols leaves businesses vulnerable to reputational harm, legal risks, and financial losses.
IDECO CEO Marius Coetzee says industries like financial services, real estate, and automotive sales are especially susceptible to these risks. “Implementing an effective KYC system is crucial to safeguarding operations and maintaining compliance.”
With South Africa’s Protection of Personal Information (POPI) Act, businesses are required to safeguard customer data. Non-compliance with POPI can result in heavy penalties. In an era where data breaches and cybercrime are on the rise, implementing strong identity verification procedures isn’t just optional – it’s a legal and ethical responsibility.
KYC isn’t confined to financial institutions. Sectors such as micro-lending, real estate, and motor dealerships must also adopt KYC to prevent fraud. For instance, micro-lenders need to verify borrower identities to prevent loan fraud.
Furthermore, property practitioners must confirm the legitimacy of clients before transactions and motor dealerships require proper buyer verification to avoid financing fraud.”
“The risk of fraud and identity theft isn’t limited to new customers; long-term clients can pose a risk if their identities have been compromised. Effective KYC processes ensure businesses don’t unintentionally facilitate criminal activity, protecting them from financial and regulatory consequences,” he explains.
For individuals, the consequences of identity theft can be catastrophic. Criminals may use stolen information to open accounts, secure loans, or even commit crimes in someone else’s name. Protecting your identity is crucial for avoiding not just inconvenience, but significant personal and financial losses.
Ideco’s eKYC, built on the Famoco FP200 mobile biometric device, offers a powerful solution for small and large businesses looking to mitigate risk and ensure compliance. It provides real-time customer identification using advanced fingerprint and facial recognition technology, directly interfacing with the Department of Home Affairs for verification.
Key features of Ideco eKYC include efficient onboarding, streamlining the identity verification process to accelerate customer onboarding. It ensures data accuracy by eliminating manual entry errors, while biometric technology enhances fraud prevention, safeguarding against identity theft and fraudulent activities. The automated KYC process delivers significant cost savings by reducing operational expenses and boosting overall efficiency.
IDECO CEO Marius Coetzee
“In addition, Ideco eKYC protects sensitive customer information, fully complying with POPI and FICA regulations, and offers scalability, seamlessly integrating into existing systems to support business growth,” says Coetzee.
With over 20 years of innovation, IDECO has been a leader in providing secure and reliable identity verification systems, and the new eKYC solution continues this legacy by helping businesses meet regulatory requirements, improve profitability, and outshine the competition.
The Famoco FP200 mobile biometric device was selected for its exceptional reliability, being trusted globally for its high performance. It features full compatibility with the Department of Home Affairs’ fingerprint records, ensuring seamless biometric verification. The device operates on a custom Android OS that is highly secure and tamper-proof, providing businesses with a safe platform.
Additionally, it comes with managed services that offer secure updates and continuous support. Businesses can also customise the branding of the device to align with their own identity, making it a versatile tool with a wide range of search functionalities to meet various needs.
Ideco eKYC provides over 15 different search functions to meet various business needs. These include identity verification, where identity numbers and related information can be confirmed, and biometric matching through fingerprint and facial recognition for accurate identification.
It also offers a “Proof of Life” function to confirm a person’s living status, along with bank account verification to validate the status of a customer’s account. Furthermore, PEP/POI reports help identify politically exposed persons or persons of interest, while full FICA reports deliver comprehensive customer data to ensure compliance with FICA regulations.
Each transaction is linked to a unique reference number for future audit purposes. Additionally, transactions can be easily integrated into your existing FICA management or CRM systems, enabling seamless remote onboarding and KYC compliance.
Ideco eKYC operates on a token system, where businesses load their accounts and are charged only when searches are successful. This makes it a cost-effective solution for businesses of all sizes.
Coetzee says getting started with Ideco eKYC is a straightforward process that involves just six simple steps. “First, submit the application form and undergo the necessary FICA checks. Once approved, you can order your Famoco device.”
“After receiving it, activate your service and enrol authorised users. From there, you can begin using the eKYC solution as and when needed,” he concludes.
By implementing Ideco eKYC, businesses of all sizes can safeguard against fraud, protect customer data, and meet regulatory requirements – all while improving efficiency and enhancing customer satisfaction.
