Selfie biometrics rollouts keep pace as eID cautions careful KYC and AML decisions
A biometrics vendor is reminding stakeholders that know-your-customer (KYC) and anti-money laundering (AML) solutions based on single-image selfie biometrics are not compliant with regulations for high-risk operations in many jurisdictions because they do not comply with the standards for procedures related to customer onboarding and authentication.
An Electronic IDentification blog post highlights the three security levels for registration and identity proofing in KYC solutions established by the National Institute of Standards and Technology (NIST) to tackle fraud in KYC and AML processes.
The NIST SP 800-63A baseline on digital identity verification classifies these levels as low (IAL1), medium (IAL2) and high (IAL3).
According to the Electronic IDentification analysis, IAL3 requires human intervention and is thus equivalent to face-to-face identification, IAL2 involves a combination of ID images and/or biometric selfies and IAL1, which does not require evidence collection, validation, verification or biometric collection, making it suitable only for low-risk operations.
“The second level is insecure, inefficient and unreliable. In the European Union, for privacy and security reasons, these methods are not allowed for many reasons at any risk level,” reads the post.
Among the reasons behind these standards are the lower technical security level of these solutions, the weakness of the electronic proof provided at the KYC process and the low-reliability with which identity verification solutions based on single selfie images perform, eID says. Video selfies, however, can meet the IAL3 standard.
Electronic IDentification goes one step further saying that the combination of the AML5 Directive and eIDAS regulation in Europe wholly bypasses biometric selfies in favor of video identification solutions that rely on local standardization bodies and a Conformity Assessment Body (CAB).
“Video streaming is becoming the standard for online customer identification due to its security, flawless UX and digital automation,” reads the post.
Swiggy partners with IITJ
Despite Electronic IDentification’s point, several companies have recently deployed new KYC solutions with selfie biometrics.
The collaboration is expected to result in a new face recognition system using computer vision and artificial intelligence.
The selfie biometric solution will be used to improve fraud detection impersonation on the platform, which has different compliance requirements than European financial institutions.
Swiggy says it will scale the biometric technology for customer age verification for alcohol purchases in the states where it operates.
Daon to verify An Post customers
Thanks to the deployment of Daon’s IdentityX platform, An Post will be able to verify its customers’ identities. Interested individuals can register using a driver’s license or passport, take a photo of their document and then a selfie.
“Using our technology, An Post can provide a frictionless but highly secure customer registration experience,” comments Clive Bourke, president of EMEA and APAC at Daon.
“We’re making sure the benefits of our identity assurance technologies enable more banking customers to register safely and securely.”
Poland-based Ukrainian fintech picks iDenfy
Fintech and cash-in payment solution provider IboxPay, which recently relocated from Ukraine to Poland, has selected iDenfy to provide its AML tools, which include selfie biometric liveness checks.
IboxPay operates a network of self-service kiosks which consumers can use to pay telecom, utility and other bills.
Sanctions list checks will be performed with iDenfy’s technology during one-time AML screening by IboxPay. The company will also perform continuous monitoring, and is looking into integrating iDenfy’s full identity verification stack, according to the announcement.
Incode and Banorte join forces
Applicants can now use the ‘Banorte Mobil’ app, to open accounts and sign up for products, including mutual funds, insurance and credit cards.
“We are proud to partner with a financial institution like Banorte in the development of its digital banking, which highlights Banorte’s dedication to customer service,” comments Incode CEO Ricardo Amper.
Incode also recently signed its first Malaysian reseller agreement.
Airbnb deploys selfie matching
The last company to deploy selfie matching technologies in our list today is Airbnb.
According to Fast Company, Airbnb will soon verify the identity of users booking reservations by using government documents and selfies.
The feature will be introduced in the room-share app across its top 35 countries, which the firm says comprise 90 percent of all reservations.
Jumio is an identity verification provider for Airbnb.
Selfie biometrics are expanding in several markets, notably including fintech.