25.01.2024Security

How to build trust with advanced facial recognition in KYC

The advances made in financial technology in recent years have unlocked better ways to offer financial services. They have simplified the way people can manage their money and provided them with both improved flexibility and heightened security.

Fourthline Forrester TEI thumbnailBy The Fourthline Team
Advanced Facial Recognition

However, this exciting revolution has a dark side. As the number of financial service providers and the services they offer increase, so do the opportunities for criminals to exploit their systems.

Identity fraud

Identity fraud is a significant and growing problem. But technological advancements have only made it harder to detect. Today, there are many new ways for criminals to steal a person’s identity to abuse the financial system, including advanced document forgery, deepfakes (hyper-realistic computer-generated videos), and advanced silicone masks. Modern identity fraud is a complex issue that must be fought on multiple fronts.

 

Facial recognition

Facial recognition is a sophisticated technology based on advanced machine-learning techniques. It works by mapping facial features that are unique to an individual. It extracts facial landmarks, patterns, and attributes from images, and compares them to determine if they belong to the same person. It can identify faces in an instant and recognize people regardless of changes in age or facial hair, glasses, and different angles. The result is a highly robust and flexible solution for verifying identity.

However, a significant portion of the facial recognition models used in the market are not trained on Know Your Customer (KYC) data. Most vendors train their algorithms on generic data, such as stock images, celebrity photos, public data, or surveillance data. But this source material does not address the specific needs of identity verification and cannot deliver the required level of accuracy.

Fourthline has developed an in-house Facial Recognition feature that is optimized to check KYC data and catch abnormalities, out-performing the models of other providers. It is built on a large, diverse, proprietary dataset.

 

Applications in KYC

Fourthline Facial Recognition has strong applications in KYC processes and other real-world scenarios and plays a pivotal role in safeguarding businesses from identity fraud.

One-on-one matching

One-on-one matching compares two images to determine if they are the same person. This comparison can be used in the following Fourthline solutions:

  • Identity Verification: When a client attempts to open a bank account, the Facial Recognition feature compares their face from a selfie photo to the portrait on their ID document.

Advanced Facial Recognition

  • Client Authentication: When a client attempts to log in to an account, the feature compares their selfie to a stored reference image before granting access.

Advanced Facial Recognition

Abuse of stolen ID documents

When an individual attempts to open a bank account with a stolen ID document, Fourthline's Facial Recognition feature detects the impersonation attempt and prevents the fraudulent application from being completed.

Criminal concealment

Criminals often try to hide their true identities by pretending to be someone else. Fourthline's Facial Recognition technology sees through disguises and compares facial features to large databases to identify imposters.

Database searches

Individuals can be identified out of very large databases of faces. This comparison can help businesses determine whether the face of a prospective client exists in databases of known fraudsters, sanctioned persons, or politically exposed persons (PEPs).

Advanced Facial Recognition

Money mules

Criminals often abuse the accounts of genuine people to launder money or conduct criminal activities. Accounts may be acquired by bribing or threatening vulnerable individuals. Fourthline's Facial Recognition feature compares the face attempting to access an account with the face of the person who originally opened it.

Doppelganger fraud

Fourthline's Facial Recognition feature can differentiate between a person's genuine face and other people who look very similar, so-called doppelgangers. This type of fraud is common with celebrities. Our sophisticated technology ensures the security of celebrity accounts and offers protection from reputational damage. It also ensures the authentication of celebrity endorsements to safeguard brands from impersonation risks.

Advanced Facial Recognition

Business benefits

Fourthline's Facial Recognition feature offers a multitude of benefits for financial service providers:

1.Builds trust: We help businesses build trustworthy relationships with their clients by deterring identity fraud.

2.Instils confidence: Our technology ensures that 99.9% of potential identity fraud is prevented in most demographic groups. A rate far more accurate than the average human judgement.

3.Increases efficiency: This lightning-fast feature increases the efficiency of the identity verification process through automation. At least 97.4% of genuine applications are processed automatically.

4.Future-proofs compliance: Integrate smarter compliance solutions that are modular and easily configurable.

By harnessing the power of Fourthline's Facial Recognition feature, businesses relying on KYC can elevate their identity verification processes and bolster their defenses against identity fraud. Stay one step ahead of fraudsters.

To find out more about how you can leverage Facial Recognition through solutions that are fully developed in-house and powered by ethical AI, contact us today!