New and improved ways businesses can protect their customer’s identity
As the prowess of the online business world continues to grow, so do the dangers that come with it. Identity theft is becoming far more common. It’s gotten so bad that in 2020, 47 percent of Americans experienced financial identity theft.
This isn’t just stealing a credit card or an email password anymore. Modern identity theft extends to an entire digital identity.
This experience can be financially devastating. As businesses grow their online presence and improve their technological processes available to clients and customers, it is vital that they understand the trust being placed in them.
Businesses have a legal and moral responsibility to their clients to protect their identities and validate the trust being placed with them. Without a foundation of trust, businesses will be unable to grow and gain a solid customer base.
It is in everyone’s best interest to have the best possible cybersecurity system and processes to protect identity, but how exactly do you do that?
Know your customer
KYC compliance is an important place to start in discussions of digital identity protection. The U.S Treasury has had laws and policies in place for years in order to prevent fraud and ensure data protection. KYC is just the latest in a long line of practices.
KYC aims to verify beyond reasonable doubt that a customer is who they say they are and ensure they are not participating in criminal activity. Following KYC practices protect your business and your entire client base.
What do you need to do to comply?
Businesses need to conduct customer due diligence for each customer they onboard. This will differ from business to business, but overall, businesses need to verify that customers are complying with government standards, are being truthful about their identity, and are being reasonably transparent about their financial assets.
Once a business has boarded a client, KYC compliance does not end. They need to do constant monitoring of the client’s identity, both for the sake of the client and the business. A client can be warned of any identity breaches, and a business can ensure that none of their clients are engaged in criminal activity, endangering the identity of their other clients.
Beyond KYC compliance, there are other steps (some incidentally part of KYC, some not) you can take to best ensure the security of your customer’s digital identities.
Carefully vet new employees
Just as you get new clients, new employees need to be carefully vetted. Employees have access to sensitive information about the internal workings of the company, including personally identifying information connected to clients.
Require employees to prove their identity and run background checks on everyone entering your company.
While this step may seem like common sense, with a shortage of workers in seemingly every industry, companies sometimes fall behind on this process. It is too important to skip, so always put it first no matter what the circumstances are.
Encrypt, encrypt, encrypt
All data on your company’s servers should be encrypted and behind a firewall, especially the data that can identify your clients.
Businesses hold an incredible amount of sensitive data, and it is their responsibility to make that data protected from potential criminal activity.
In addition to simply encrypting the data, be hyper-aware of where all of your company’s data is being stored and what is being done to protect it. Organization is key when it comes to protection.
It also might be worth investing in a vulnerability scanner to ensure that all your data is safe and protected.
ID verification
One of the most important parts of KYC compliance, ID verification is vital to protecting your customer’s identity. ID verification is an incredibly simple step that goes a long way to protecting from risky criminal behavior.
ID Verification is an important way to keep up as technology grows. Customers will feel safer and have more trust in you when they know that you care about the identity and activities of your clients.
Modern ID Verification platforms have built-in protections against duplicate or forged IDs and can be trusted to vet potential clients. Many of them also have ways to integrate ID Verification into the onboarding process, so clients can have a smooth and efficient experience.
Advise clients on simple digital identity best practices
Do your part to keep your clients informed on the best digital protection practices. While most protections feel like common sense, a reminder can go a long way.
Make sure that your platform requires them to change their password frequently if they have one. Customers should always use secure servers and should never share personal details with someone that they do not know for sure to be a member of your team.
When your clients are practicing safe digital security, it takes much of the burden and worries off you.
As the world moves more online, the ways we protect ourselves and our clients must follow us online. Protecting your client’s data will improve your relationship with them and build future business. It is more important than ever to take steps toward better digital security.
