How to Improve Kyc Security

Is KYC Broken? Here’s the latest...(you need to know) Most companies think KYC is a bulletproof line of defense. The reality, it can be a giant blind spot. Fraudsters have figured out how to bypass identity verification at scale. AI-generated deepfakes, emulators, and app cloners make it easy to create synthetic identities that can pass KYC checks. KYC system's aren’t failing because they are weak, they're failing because they were never built to catch fraud in an AI world. Here’s the exploit: ▪️ Deepfake Technology: AI-generated videos that bypass facial verification. The KYC platform sees a “real” face but its not! ▪️ Device Spoofing: Emulators and cloners create multiple fake devices, masking fraudulent activity and enabling scaled attacks. ▪️ Hooking & Tampering: Fraudsters manipulate verification apps to inject fake data directly into the process. The result? Fraudsters can pass KYC undetected. Fake accounts skyrocket - Payment fraud and chargebacks escalate. Most companies don’t have a good grip on this yet. So what’s the fix? You have to start analyzing devices and behaviors in real time. ✅ Device intelligence: Identify syndicates tied to the same device, accurately. ✅ Behavioral analysis: Detect session anomalies in real-time before fraudsters can cash out. ✅ Continuous monitoring: Fraud doesn’t stop at onboarding or only happen at payment - think "anytime fraud" and monitor accordingly. Fraudsters know KYC is just a checkpoint. They know what you are checking for and how to fool the process. What do you think #fraudfighters?

Weak Know Your Customer process (KYC) is the main cause of failure in Financial Crimes Programs, as 90% of all fraud comes from fully verified identities. Weak identity verification and KYC controls have created a system where: ❌  Financial crimes professionals are reporting illicit activity on a victim, not on the actual perpetrator ❌ A tremendous amount of time and resources are being allocated to reports that shouldn’t have been generated in the first place Worse, it doesn't appear to be stopping bad actors. If anything the opposite. Recent FinCEN SAR filling data makes ugly reading. Most attackers have impersonated others to defraud victims. 👉 69% of identity related BSA reports indicate that attackers impersonated others as part of efforts to defraud victims.  👉 18% of identity-related BSA reports describe attackers using compromised credentials to gain unauthorized access to legitimate customers’ accounts.  👉 13% of identity-related BSA reports report attackers exploiting insufficient verification processes to advance their schemes The solution to the problem - Layering controls. 🐟 1 - Lowest friction. Collect device & behavior signals 🐟 2 - Moderate friction. One Time Passcodes (OTP), identity checks, background data checks with telco's, email providers, bank consortia, matching SSNs to DOBs 🐟 3 - High friction (when risk dictates). eCBSV -The Social Security Administration created eCBSV, a fee-based Social Security number (SSN) verification service. Doc IDV + Selfie + Liveness detection. 🐟 4 - Post account creation speed bumps. Monitor payment credentials and transactions against known good / bad identities and counterparties (+ MUCH more). Progressive KYC is critical to balance the friction of user experience with the critical need to continually improve compliance programs. Krisan Nichani wrote a great long form piece on our blog (link in comments) #kyc #aml #compliance

AI-generated IDs and deep fakes are already breaking KYC and most gambling operators aren’t ready. The UK Gambling Commission confirmed it this week: fraudsters are using AI to generate fake IDs and mimic real faces. The tools are fast, cheap, and getting harder to detect: https://veriftools.net/en/. Here’s the reality: •Operators relying on basic ID scans without liveness checks? Already behind. •White-label partners not doing enhanced monitoring? A backdoor for fraud. •Still treating KYC and due diligence as a compliance formality? Good luck. What should change? 💡 •Don’t front load friction, instead delay ID checks, if you can, until the point it becomes necessary •Use deep fake-proof liveness detection and verify national ID data •Combine signals from devices, digital footprints, and user behavior •Treat KYC like fraud prevention, not paperwork Too many businesses default to heavy-handed ID checks too early and it kills the customer experience. Smart fraud tools wait, watch, and hit when it matters. At SEON, we help operators stop fraud, not customers. ✅ AI isn’t just scaling fraud, but it’s exposing every shortcut you’ve ever taken. It’s time to close the gaps.🛡️