The availability of coworking spaces has resulted in identity theft and unaccredited identities gaining access to restricted content. Service providers want to discourage fraudulent attempts and ensure compliance with international regulations. KYC documents verification solutions can help co-working space providers achieve the above goals. This not only ensures a positive experience for users but also guarantees a competitive advantage in a tough market atmosphere.
The following blog goes in-depth about the significance of KYC documents authenticating services and how co-working spaces can discourage identity fraud by applying it.
KYC Documents Solutions: A Quick Insight
According to Future Market Insights, the global IDV market size will reach a CAGR of around 14.8%, showing a financial worth of approximately $40 B by 2032.
In the next 10 years, the widespread use of intelligent devices by various corporate entities will increase the demand for KYC documents solutions.
The digital literacy count in all countries is growing with time, enabling people to use various kinds of online services. An increasing number of online users of different digital solutions is facilitating the growth of the online IDV market in developing nations as well.
Rising digital literacy around the world is enabling users to operate various devices conveniently. This is one of the key market drivers behind the demand for KYC documents services.
Identity verification is about authenticating the ID credentials of an entity during the onboarding process. Companies can perform identity validation through record authentication, biometrics, and other ways. KYC documents play an important role in fraud prevention and in discouraging bad actors.
Co-working spaces are a kind of business model that invites various workers from multiple companies to work together in a shared space.
This method brings together unfamiliar employees and employers to sit together and work which naturally results in identity fraud cases and data privacy breaches. Previously, workers collaborated in coffee shops and hotel lobbies. Nonetheless, those spaces did not follow regular working hours.
Safety Concerns in Shared Spaces: Gaining Insight
Co-working spaces are independent business entities, and several startups and SMEs have started utilising the sites to reduce overall expenditures. This raises a major concern about security for users. Nowadays, multiple shared workspaces offer flexible and cost-effective services that compromise the privacy of users.
Among business users, it is believed that shared working spaces are more secure with electric access controls and biometric systems. Co-working platforms have a friendly environment but there is a restriction on the number of individuals that can use the platform at one time. Of course, privacy is a major issue.
Enterprises that use co-working spaces have shared concerns regarding data privacy breaches & property theft. One of the purposes of shared working spaces is to nurture collaboration and offer networking opportunities. However, this can also backfire when competitors are trying to work in the same space.
Biometric Data Theft Case
In 2019, fingerprints got leaked from a public database. There were around one million entities’ data along with other biometric information. A Znet report shared that a privacy leak of massive magnitude is a serious matter. Moreover, biometric data cannot be altered in the same way as credit card numbers. But once criminals compromise the information, there is no going back.
The consequences of biometric data breaches are serious for businesses that have become a victim. For example, the use of deep fake technology is a major concern that results in identity theft. With the widespread use of co-working spaces, engineers must create effective fraud prevention measures such as KYC documents validating services and sticking to international standards. The application of customer due diligence is also part of the know your customer validation procedure.
Using Customer Due Diligence (CDD) System in Shared Working Spaces
The main purpose of fraud risk assessment is to deal with businesses’ shortcomings in security protocols. Using customer due diligence procedures can help co-working spaces discourage fraud. CDD can help experts discourage fraud by creating a risk profile which also facilitates background checks with global watchlists. To analyse risk, co-working spaces must implement robust security protocols.
Using Two-Factor Authentication Measures
Two-Factor Authentication (2FA), businesses can add one more layer of security. This way, users can secure their official communication and employee privacy. 2FA security measures allow businesses to fight fraud and discourage social engineering attacks on platforms. In this way, users can identify fraudulent activities early on before matters get worse. This advanced approach also protects the market reputation of the company and service providers.
The Bottom Line
The application of KYC process and documents can help co-working platforms discourage identity fraud and win the trust of clients. This way, vendors of shared spaces can streamline the onboarding process and attract genuine customers. It also cultivates cooperation between the customers and ensures that all parties are dealing with legit identities.
Teaming up with a verified third-party vendor can help co-working space providers to apply for a PCI DSS-compliant KYC documents service. The AI-driven solution produces high-quality results within a few seconds. The advanced approach not only ensures unbeatable data privacy but also a better experience for customers.
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