Identity theft is a crime that every generation faces generally. Generation Z is in danger of facing increasing identity fraud cases because of their purchasing power. According to reports, Gen Z has a spending power of around $360 billion. Fraudsters want to gain access to these financial resources by any means necessary. However, Gen Z is extremely careful about their money. Companies want to support Gen Z in their objectives. This is why digital KYC verification is important for safeguarding the personal data and finances of Gen Z clients. The solution will help financial institutions to gain the trust of Gen Z customers.
Generation Z – What are the Common Scams for Them?
According to the census, Generation Z is the major portion of the global population. It is clear that they are tech-smart but they are still victims of digital fraudsters. Some common types of scams that cybercriminals use to target them are:
- Fake texts
- Bluejacking attacks
- Social media platform fraud
What are Some Risky Practices that Increase Identity Theft?
Every member of generation Z can be a victim of cybercriminals. The question is why does this happen? Following are some bad practices that enable fraudsters to use their illicit tactics:
Use of One Password for Every Online Account
This is one of the biggest mistakes that a user can make. It exposes their personal information to hackers easily. It is frequently the case that people use simple and easily identifiable passwords that scammers can break through and collect sensitive information about the client.
Lack of Reconciliation Between Bank Statements
Clients miss reconciling their bank statements for several months due to some reasons. After some time, they notice numbers that do not match each other and cause anxiety to the customer. In this case, the client became the victim of credit card fraud. It is the most common form of identity theft.
Being Active in Risky Marketplaces
These days online shopping is booming but there are some cons to it as well. Fraudulent shopkeepers have targeted the online platform for malicious purposes. They use different methods to target the sensitive information of clients. For instance, they can ask for bank account data or PII (Personally Identifiable Information) from the clients. Due to the presence of scammers, problems like ID theft, stolen account issues, and voice phishing fraud cases have increased. They are a big concern for genuine sellers.
Digital KYC Solutions – How Effective are the KYC Services?
Customer loyalty is very important for businesses. Digital KYC solutions can facilitate organizations to maintain customer loyalty. The automated digital KYC solutions have multi-layered steps that can minimize manual effort. It means that there is no need to wait for weeks and months to see results. The AI-backed technology can quickly present verification results to the users. In this way, companies can rest assured that they will only onboard genuine clients while staying compliant with stringent regulations.
The digital revolution is changing the world, and it is important for businesses to maintain a positive relationship with their customers. It should be noted that the manual KYC verification process is time-consuming as well as expensive. Still, it gives a negative experience to clients because they have to wait for a long time to see the verification outcomes. It can be frustrating for them so they leave the process in the middle.
In such a scenario, the implementation of digital KYC solutions is a life saver for financial institutions as well as individual clients. The digital KYC solutions also highlight highly risky clients for the companies so that they can carefully deal with them. Due to fast and reliable service, the companies are moving towards a global onboarding process. It means that companies will be able to incorporate customers from across the globe.
What Role can Businesses Play in Safeguarding their Customers?
Giving protection to consumers can seem like a difficult task. However, companies can gain the trust of their consumers and detect criminals through robust identity verification procedures- digital KYC solutions. The identity validation procedure should happen to every client during the onboarding process. The process makes it so much easier to identify genuine clients and discourages bad actors. Moreover, it creates a positive impression on the clients that the company cares about the legitimate identities to work with.
Finally, the digital KYC solutions solve all the problems for Generation Z. The online KYC solution is also feasible for other members of the population i.e. Millenials. The electronic solution makes the onboarding process seamless for the clients. The digital KYC solutions only take a few seconds to show authentication results. Additionally, the system stores result in the back office for future use. The good news is that the digital KYC solutions service is GDPR compliant to ensure comprehensive data security for all customers.