Johannesburg – IDECO has announced the launch of its innovative Electronic Know Your Client (eKYC) solution, designed to safeguard businesses and individuals from the rising threats of identity theft and fraud.
The launch of IDECO’s eKYC solution coincides with celebrating International Identity Day on 16 September 2024.
As digital transactions grow globally, the need for secure identity verification has never been more urgent.
IDECO said its eKYC solution supports global efforts to ensure that identities are trusted, protected, and verifiable.
By providing real-time biometric verification and seamless integration with government records, IDECO’s eKYC solution plays a vital role in securing the future of identity protection.
IDECO offers advanced biometric identification based on fingerprints and face recognition.
By using IDECO’s eKYC solution a business can protect itself and its customers against identity theft, financial crime, and regulatory noncompliance while aligning with the global focus on identity protection and security.
Identity Day seeks to gain global recognition for the critical role that “verifiable proof of identity” plays.
Despite being a basic human right and a practical necessity, 16 September is the only day globally dedicated to identity.
The selection of 16 September (16.9) is symbolic, referencing UN Sustainable Development Goal 16.9 to ensure every person has a legal identity, including birth registration, by 2030.
IDECO’s innovative tool – eKYC solution – comes at an apt time when businesses and individuals confront increasing risks of fraud, identity theft, and financial crime.
The eKYC solution offers reliable identity verification processes, designed to safeguard both businesses and their clients against these growing threats.
In 2020, financial institutions faced over $10.4 billion in fines for non-compliance with money laundering and data protection regulations.
IDECO says adopting the eKYC solution reduces fraud risk by up to 50% and improves customer loyalty by up to 30%.
Automation can also save up to 25% in operational costs.
Estimates are that by next year 80% of Know Your Client (KYC) processes will be fully digital.
KYC has evolved from a recommendation to a vital requirement for businesses, particularly those handling sensitive information.
KYC ensures that clients are who they claim to be, helping to prevent fraud, money laundering, and other illicit activities.
Failure to implement robust KYC protocols leaves businesses vulnerable to reputational harm, legal risks, and financial losses.
IDECO CEO Marius Coetzee says industries like financial services, real estate, and automotive sales are especially susceptible to these risks.
“Implementing an effective KYC system is crucial to safeguarding operations and maintaining compliance,” Coetzee says.
With South Africa’s Protection of Personal Information (POPI) Act, businesses are required to safeguard customer data.
Non-compliance with POPI can result in heavy penalties.
In an era of rising data breaches and cybercrime, implementing strong identity verification procedures isn’t just optional – it’s a legal and ethical responsibility.
KYC isn’t confined to financial institutions.
Coetzee says sectors such as micro-lending, real estate, and motor dealerships must also adopt KYC to prevent fraud.
“For instance, micro-lenders need to verify borrower identities to prevent loan fraud,” Coetzee says.
“Furthermore, property practitioners must confirm the legitimacy of clients before transactions and motor dealerships require proper buyer verification to avoid financing fraud.
“The risk of fraud and identity theft isn’t limited to new customers; long-term clients can pose a risk if their identities have been compromised.
“Effective KYC processes ensure businesses don’t unintentionally facilitate criminal activity, protecting them from financial and regulatory consequences.”
For individuals, the consequences of identity theft can be catastrophic.
Criminals use stolen information to open accounts, secure loans, or even commit crimes in someone else’s name.
Coetzee says protecting your identity is crucial for avoiding not just inconvenience, but significant personal and financial losses.
IDECO’s eKYC solution built on the Famoco FP200 mobile biometric device, offers a powerful solution for small and large businesses looking to mitigate risk and ensure compliance.
It provides real-time customer identification using advanced fingerprint and facial recognition technology, directly interfacing with the Department of Home Affairs for verification.
Key features of IDECO eKYC solution include efficient onboarding, streamlining the identity verification process to accelerate customer onboarding.
Coetzee says it ensures data accuracy by eliminating manual entry errors, while biometric technology enhances fraud prevention, safeguarding against identity theft and fraudulent activities.
The automated KYC process delivers significant cost savings by reducing operational expenses and boosting overall efficiency.
“In addition, IDECO eKYC protects sensitive customer information, fully complying with POPI and FICA regulations, and offers scalability, seamlessly integrating into existing systems to support business growth,” says Coetzee.
With over 20 years of innovation, IDECO has been a leader in providing secure and reliable identity verification systems, and the new eKYC solution continues this legacy by helping businesses meet regulatory requirements, improve profitability, and outshine the competition.
The Famoco FP200 mobile biometric device was selected for its exceptional reliability, being trusted globally for its high performance.
It features full compatibility with the Department of Home Affairs’ fingerprint records, ensuring seamless biometric verification.
The device operates on a custom Android OS that is highly secure and tamper-proof, providing businesses with a safe platform.
Additionally, it comes with managed services that offer secure updates and continuous support.
Businesses can also customise the branding of the device to align with their own identity, making it a versatile tool with a wide range of search functionalities to meet various needs.
IDECO eKYC provides over 15 different search functions to meet various business needs.
These include identity verification, where identity numbers and related information can be confirmed, and biometric matching through fingerprint and facial recognition for accurate identification.
It also offers a “Proof of Life” function to confirm a person’s living status, along with bank account verification to validate the status of a customer’s account.
Coetzee explains that PEP/POI reports help identify politically exposed persons or persons of interest, while full FICA reports deliver comprehensive customer data to ensure compliance with FICA regulations.
He says each transaction is linked to a unique reference number for future audit purposes.
Additionally, transactions can be easily integrated into your existing FICA management or CRM systems, enabling seamless remote onboarding and KYC compliance.
Coetzee says IDECO eKYC operates on a token system, where businesses load their accounts and are charged only when searches are successful.
This makes it a cost-effective solution for businesses of all sizes.
Coetzee says getting started with the IDECO eKYC solution is a straightforward process that involves just six simple steps.
“First, submit the application form and undergo the necessary FICA checks. Once approved, you can order your Famoco device,” Coetzee says.
“After receiving it, activate your service and enrol authorised users.
“From there, you can begin using the eKYC solution as and when needed.”
By implementing the IDECO eKYC solution, businesses of all sizes can safeguard against fraud, protect customer data, and meet regulatory requirements – all while improving efficiency and enhancing customer satisfaction.
