The Importance of KYC Video Verification in Real Estate

KYC Video Verification- The real estate industry remains one of businesses’ most significant economic sectors. A recent study from Statista shows a forecasted real estate market in Pakistan. The industry is projected to reach a value of  $2.11 trillion this year. While comparing real estate across the globe, it is reported that in the real estate market, China is expected to generate the highest values in 2024. Since a significant amount of money dealing is held in the market, fraudsters and other criminals are attracted to this industry and involved in their illegal money exchanges using these platforms.

However, the KYC Video comes to the rescue of the real estate sector, preventing money laundering and other financial crimes from businesses. Read the article to learn more about KYC videos in the real estate sector and how customer verification deals with deep fakes and account takeover crimes.

A Quick Brief on KYC Video Identification

What is KYC, and how does video identification work with the customer verification process? All these questions can be answered with the statement. The KYC video identification refers to the authentication method to validate the customers using a liveness test on a video interview call. The KYC video verification process includes collecting documents from the client on live, and the validation agent cross-checks the facial features against the official documents submitted. The authentication is done using pre-trained AI models to ensure that the entity is legitimate as it claims to be. 

Financial Frauds in Real Estate – A Quick Recap

Financial crimes include all kinds of fraud, including money laundering, ID spoofing, and impersonating attacks to dodge the systems. However, in the real estate sector, the nature of crimes may include property price manipulations and unclear structure of business owners. Criminals can rent out the property they have purchased illegally while cashing in on the property appreciation. The fraudulent activities can easily manipulate the systems while developing the techniques, including:

  1. Shell companies setups
  2. Non-transparent financing schemes and payments 
  3. Including third parties acting as potential owners of the properties

All these crimes make the real estate vulnerable to the imposters. However, with challenges come solutions, and companies in this industry develop a robust verification system. The detailed version of KYC video verification is discussed in the next section.

KYC Video Identification Check in the Real Estate Sector

Video check methods in customer verification help industries grow and sustain a reputational image in the business market. One of these industries includes real estate. The KYC video allows businesses to incorporate remote tenant validations. It motivates and provides services to the companies making their workspace secure and preventing financial crimes. The video KYC in real estate works by offering real-time sync and flexible integration options. Online customer verification promises an efficient and seamless security system that helps sustain consumer trust and expands business on larger scales.

How eKYC Video Verification Overcome Red Flags in Real Estate 

Automated verification systems help the real estate industry eliminate the risk of all red flags occurring. Following are some red flags and how eKYC is conquering them effectively:

  • Multiple bank accounts used by the imposter can be checked by video verification to ensure that the entities accessing them are legitimate.
  • Unusual transaction patterns are now detected using screening methods and ongoing KYC monitoring methods.
  • Deepfakes to manipulate the systems are now inspected and detected by the liveness detection tools.
  • Complicated structures of the owners can be verified by checking the features against the provided databases. 
  • Consistency in property dealing is also suspicious, however, with transaction pattern detection, it is easy to reduce the risk of financial fraud.

Best Practices of KYC Video Calls

Optimal practices adopted by the KYC video calls include:

  • Contactless identification makes it a fast customer verification process
  • Anti-spoofing using AI and ML models to ensure accurate detection
  • Real-time data extraction from the documents with the use of OCR technology
  • Liveness inspection to prevent facial spoofing crimes
  • Robust security measures to ensure end-to-end encryptions 
  • Address verification with the consumer IP address.

By implementing these methodologies, KYC video identification serves as a powerful tool for striking an ideal balance between KYC and AML compliance against regulatory charges.

Final Statement 

The Real Estate sector is increasingly vulnerable to imposters exploiting its credentials for illicit financial activities like money laundering. In response, automated KYC video verification emerges as a vital tool, thoroughly scrutinizing identification documents and conducting facial recognition checks to verify the authenticity of individuals participating in transactions. By automating this process, KYC video verification offers a cost-effective and time-efficient solution, bolstering defenses against fraud while ensuring compliance with regulatory standards.

Moreover, KYC video verification serves as a powerful deterrent against financial crimes within the real estate sector, leveraging advanced software and algorithms to enhance accuracy and reliability in identity verification. This proactive approach not only mitigates risks but also instills confidence among stakeholders, fostering trust and integrity in real estate transactions. As the industry continues to evolve, integrating KYC video verification into standard practices will be essential in safeguarding against fraudulent activities and maintaining the sector’s reputation for transparency and security.

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