How Australian KYC Providers Verify Customer Risk




Australian companies and institutions are not immune to the onslaught of cybersecurity crimes. From educational institutions being misled by false identifications to fraudulent transactions conducted using bank accounts, Australians fight tooth and nail with these hackers who go the extra mile to conduct illegal activities.


An Australian network was recently targeted by a cyberattack that resulted in the network being offline for 24 hours. Suppose you run a business in Australia and have online transactions with customers. In that case, you need to verify the identity of these individuals first before you allow them to transact with your company. Fortunately, there are kyc providers in australia you can tap into. They will run a KYC program that includes the following steps.


Customer Identification

The first step is installing a customer identification program that can verify any documents submitted by the customer when applying to open an account or make a transaction. Identity theft happens worldwide, and Australians are constantly getting victimised by scammers through identity theft. By running the program, you will check if the identification document matches the person submitting them.


The program has access through independent data sources such as the government and other personal suppliers. With this kind of coverage, you will verify the documents submitted from the actual source. For instance, if the customer submits a government-issued document, you can verify it using the program with access to government data. If it does not match up, you can reject the application.


Customer Due Diligence

Conducting customer due diligence is crucial to financial institutions that open accounts for customers. High-risk individuals should be screened to prevent criminals from opening accounts that can put the financial institution at risk. Even if the institution itself is not taking part in any money-laundering schemes, the bank itself could get involved in the fraudulent activities if there is a bank account.


This step includes determining and verifying the identity and location of the potential customer. It includes ascertaining the validity of their business activities. Ill-gotten wealth deposited into bank accounts can pose a threat to the financial institution and must be avoided. The identification provided by the customer can be checked for authentication purposes. The documents and information verified in this step include the location and occupation of the individual, the type of transactions being made, patterns of activities, and even the method of payments for transactions.


Constant Monitoring

The program constantly monitors the identification of customers as well as the transactions that they make. It is not only a one-time verification because you can never predict anyone’s intentions at first glance. Even if the customer passes the identification verification process initially, they could make fraudulent transactions under the account, and it needs to be stopped.


Activities and transactions that warrant suspicion include any spike in activities at a certain period. Any unusual activities are done outside of the customer’s location, conducting transactions with individuals on sanctions lists from the Australian government, and any bad press from the Australian or international media. The KYC program will detect these activities and notify you so you can take the necessary actions.


These steps are followed if you have a KYC program in place. The program monitors the identification and other documentation provided by potential customers, customer due diligence is conducted, and the program constantly monitors the customer’s activities. If you want this program for your company, you can contact trusted kyc providers in australia. You can keep your company secure and safe from illegal activities with a robust KYC program.


Author Bio: Hannah Gilbert is a freelance writer who offers ghostwriting, copywriting, and blogging services. She works closely with B2C and B2B businesses providing digital marketing content that gains social media attention and increases their search engine visibility.
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