The report, based upon a survey of 500 regulated companies in the UK, reveals that financial services firms are witnessing increased fraudulent activity, yet many are still using outdated procedures to confirm client identities.
The research found that 51% of financial services firms in the UK reported seeing a rise in financial crime attempts in 2021, but 33% of firms still use manual checks when onboarding new customers. 35% of financial services providers claimed that using hard copy documents was a more reliable method for establishing ID and a quarter claimed they were ‘highly confident’ they could spot a fake document. 29% of them stated that it takes them up to a week to process hard copy documents.
The KYC process has come under increased scrutiny recently as businesses across industries adjusted to working remotely, according to the press release. To ensure regulated businesses can accurately identify and screen clients, SmartSearch is recommending businesses use digital onboarding.
SmartSearch officials explained that to prevent money laundering, businesses need to fight fire with fire. As criminals are embracing technology, those aiming to prevent criminal activity need to embrace electronic verification. With the wave of fraud not going anywhere anytime soon, regulated businesses should make the switch to electronic verification as soon as possible, they added.
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