Fighting Corruption With Lifestyle & Social Media Checks
28 June 2023
Enhancing KYC with Social Media Checks: Unleashing the Power of Digital Media Data
In today’s data-driven world, businesses and organisations rely heavily on Know Your Customer (KYC) processes to assess customer risk, establish trust and comply with Anti-Money Laundering (AML) laws. Farosian’s digital media data significantly enhances the effectiveness of KYC practices.
What is KYC?
In short, KYC usually helps businesses to:
- Establish customer identity
- Understand the nature of the customer’s activities (the primary goal is to satisfy that the source of the customer’s funds is legitimate)
- Assess money laundering risks associated with that customer for purposes of monitoring the customer’s activities
The traditional KYC approach, which often includes adverse media checks, hasn’t been as effective in identifying high-risk customers as it could be. However, with the ever-growing influence of social and digital media in our lives, a revolutionary solution has emerged to bolster KYC checks significantly. Leveraging the power of AI and social signals, our innovative product aims to redefine how organisations truly know their customers.
What about adverse media checks?
Traditionally, adverse media checks have been an important component of KYC procedures. These checks involve screening customers against various negative databases, sanction lists, and media sources for any associations with criminal activities, financial misconduct, or reputational risks.
While effective to some extent, this approach has limitations. It often relies on predefined databases, which may not capture all relevant information, leaving potential gaps in risk identification. Moreover, the static nature of adverse media checks may fail to keep pace with rapidly evolving customer behaviour and online interactions.
The solution: Farosian’s Digital Media Data
Enter the era of social media checks – an innovative approach which taps into the vast reservoirs of data available through social and digital media platforms. Social media screening encompasses a wealth of information, including users’ posts, connections, interactions, and sentiments.
Our product harnesses the potential of advanced AI algorithms, machine learning and a dedicated team of digital data analysts to scrutinize these data points, providing a dynamic and comprehensive view of a customer’s digital footprint.
If knowledge is power, then data is gold.
Customer Due Diligence, Redefined
The amalgamation of AI and social media data revolutionizes customer due diligence, offering a multifaceted perspective on the individuals or entities under scrutiny. Here’s a breakdown of how our social media background checks can bolster KYC and enable organizations to know their customers better:
- Expanded Data Pool: Unlike adverse media checks that rely on limited predefined databases, social media checks draw from a vast and constantly evolving pool of online information. This broader data scope ensures a more thorough investigation and uncovers hidden risks that may have been overlooked in traditional checks.
- Behavioural Analysis: By analysing social media activity and content, our product provides valuable insights into customer behaviour, interests, and connections. This behavioural analysis can help identify potential red flags, such as sudden changes in online behaviour or associations with high-risk individuals.
- Sentiment Analysis: Understanding customer sentiment towards the organization can be crucial in identifying potential threats or dissatisfied customers who might pose a risk to the business. Social media sentiment analysis gauges customer attitudes, allowing organisations to proactively address concerns.
- Real-time Monitoring: The dynamic nature of social media necessitates real-time monitoring to stay updated on customer activities and sentiments. Our AI-powered solution continuously tracks social signals, enabling organizations to respond promptly to emerging risks and changing customer profiles.
- Enhanced Risk Scoring: By incorporating social media data into the risk-scoring process, our product refines risk assessments and provides a more nuanced view of customer profiles. This ensures that organizations can differentiate between high-risk customers and those with a positive digital reputation.
Incorporating AI-boosted social media background checks into KYC processes represents a transformative leap forward for organisations seeking to reinforce their risk management strategies. By harnessing the power of digital media data, our product surpasses traditional adverse media checks and equips businesses with a comprehensive understanding of their customers. Embracing this innovative approach will empower organisations to make better-informed decisions, foster trust, and mitigate potential risks effectively.
Get in touch with us and let’s chat about how we can help your organisation make more informed business decisions, today.
