FB pixel

Fourthline report warns of identity verification technologies causing more manual reviews

Fourthline report warns of identity verification technologies causing more manual reviews
 

Banks and fintechs are dedicating between three and five percent of their overall compliance cost to the digital identity verification technologies they use to meet their high compliance requirements, according to newly-released data from Fourthline.

The fraud prevention and compliance provider’s white paper on ‘The Digital KYC Paradox’ indicates that 45 anti-money laundering (AML) penalties were levied around the world in 2020, with a total cost of $2.2 billion.

The paradox referred to is what Fourthline says is a common situation in which financial institutions put technology in place, like selfie biometrics and ID document checks, to perform identity verification, but end up with a greater volume of manual checks creating a back-office burden.

These processes, however, tend to be error-prone and expensive, according to Fourthline. A holistic data approach can enable organizations to automate more approvals, and unlock untapped value for clients.

Fourthline has also reported year-over-year revenue growth of 200 percent in the third quarter of its fiscal 2021.

The company detected 37 percent more financial fraud attempts in from June 2020 to June 2021, with 47 percent of those in Europe involving social engineering or manipulation, according to an announcement.

Fourthline is continuing to collaborate with working groups operated by the French National Police and Europol to help fight financial crime.

AML landscape complexity

Fourthline examined France’s landscape of AML, know your customer (KYC) and other regulations in an article on its website.

The post provides a snapshot of French AML regulations and directives, the country’s primary financial regulators and enforcement bodies.

Partnering with a regtech firm that can offer in-depth knowledge of the European legal landscape can help keep companies on the right side of French regulations, Fourthline advises.

The company noted earlier this year in a post on take-aways from the Money 20/20 Europe conference that while KYC solutions in Europe must by GDPR-compliant regardless of the jurisdiction they are operating in, different rules for data flows can lead to very different challenges in different country markets.

Article Topics

 |   |   |   |   |   |   |   |   |   |   |   | 

Latest Biometrics News

 

Biometrics disrupting the future of movement, on and offline

Biometrics are disrupting different areas of life, from how people interact with governments for basic services to the esoteric world…

 

Alexa, sue Amazon: tech giant faces class action over voice recordings

Users of Amazon’s Alexa are clear to pursue a class action over allegedly illegal recordings of private conversations. In Seattle,…

 

Epic Games provides Yoti facial age estimation to Bluesky for UK users

Social media platform Bluesky has selected Epic Games’ software, including biometrics-based age estimation from Yoti, to ensure its compliance with…

 

RealSense targets robotics, 3D facial recognition security with $50M in hand

RealSense has cut the cord tying it to Intel Corp, where the 3D camera company was born, with $50 million…

 

Will Congress reaffirm US cyber threat sharing framework before it’s too late?

As the September 30 expiration date for the Cybersecurity Information Sharing Act of 2015 (CISA 2015) rapidly approaches, Congress faces…

 

World pauses German operations for Orb update amid regulatory faceoff

World is facing a potential cease-and-desist order in the Philippines, and has put its iris scanning stations on hold in…

Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Biometric Market Analysis

Most Viewed This Week

Featured Company

Biometrics Insight, Opinion

Digital ID In-Depth

Biometrics White Papers

Biometrics Events