In the world of technological innovation, co-working platforms have resulted in a business transformation that raises various security concerns. Fraudsters are committing identity theft & data privacy breaches. This perplexes co-working service providers because operators want to ensure a positive experience for workers when various employees and businesses collaborate to achieve goals. Undoubtedly, this raises issues of ID theft & data privacy breaches.
The following article discusses the significance of KYC verification services in fraud prevention and ensuring compliance with KYC & AML regulations.
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Security Concerns: A Quick Overview
With the introduction of co-working spaces, various startups & SMEs have started utilising shared workspaces to reduce operational costs. A major concern in this context is security. Several co-working platforms provide a cost-effective, flexible plan that raises privacy concerns.
According to experts in the field, co-working spaces can be made more secure with e-access controls and KYC verification service.
A co-working space provides a friendly environment, but there are limitations to the number of employees working there. This results in privacy concerns for modern-day companies.
SMEs that benefit from co-working systems also report concerns about data privacy breaches & property theft. Shared workspaces foster collaboration and provide networking opportunities, but this can easily backfire if competitors work in the same space.
According to Straits research, the KYC verification market size will grow to around 32.94 billion dollars by 2030, showing a CAGR of 16.35% for 2023-2030. According to the report, the key market drivers are:
- Rising internet & digital literacy
- Increasing cases of identity theft
The rise of smart services will fuel the need for KYC verification services in order to deter identity fraud. Globally, people are becoming more digitally literate, which enables them to use internet services. Nowadays, companies depend more on digital data & NETWORK cable to streamline daily operations & commercial activities. In this way, internet users are sharing and storing personal & financial data.
Gaining Insight Into Data Privacy Breaches & Cybersecurity Concerns
A major concern for businesses using shared spaces is cybersecurity. Corporations that have to deal with large volumes of data regularly and collaborate with other companies can encounter cybersecurity risks at any time.
Regarding traditional working spaces, all employees are familiar with each other because of collaboration with other departments.
On the other hand, co-working provides flexibility where employees can come & go on their own. This also raises concerns about identity theft and different types of scams.
Biometric Data Theft
A public database leaked the fingerprints of more than one million inhabitants, including their facial recognition data. A report on BioStar 2 breach said that data privacy breaches are a serious affair. Biometric information is immutable, but once it is compromised, nothing can be done.
Biometric data breaches have a negative impact on any business that fraudsters want to exploit. For example, the rising cases of deep fake technology that employs face scans to create fraudulent videos of individuals is a major concern for businesses. With time, business owners & engineers must work on improving fraud prevention measures through robust KYC verification measures. This way, businesses, and shared workspace vendors can comply with international standards. Applying customer due diligence as part of KYC verification solutions can help corporations deal with the above challenges.
Implementing CDD in Co-Working Spaces
The main aim of fraud risk assessment is to deal with the loopholes in security systems to discourage internal & external fraud. Using CDD procedures can help operators in assessing risk associated with customer profiles. This allows modern-day corporations to perform in-depth CDD procedures to detect fraudulent activities. In addition to risk analysis, co-working spaces must opt for strategic protocols to protect employees’ bank details.
Using two-factor authentication systems, corporations can benefit from additional security measures, streamline official communication and ensure privacy. Two-factor authentication can empower co-working space operators to fight fraud and avoid social engineering attacks. Security measures such as 2FA allow businesses to identify suspicious activities timely and safeguard financial assets to protect market reputation.
Safeguarding workers from identity theft in co-working platforms can be challenging, but corporations can certainly identify bad actors with the help of KYC verification solutions. Validating employee identities during the onboarding process facilitates co-working platforms to attract genuine customers. Moreover, this fosters trust among employees that the business is genuine.
The application of KYC verification solutions can facilitate modern-day industries to verify all the onboarding clients. Robust verification of all customer identities can facilitate co-working spaces to attract genuine customers and ensure a positive experience for users. Within a few seconds, clients can get highly accurate final verification results. The output is also stored in the back office for future use.
Shared working space providers can collaborate with a third-party vendor to implement KYC verification solutions that are GDPR & PCI DSS compliant. This way, companies can ensure complete data privacy & unbeatable security for all users.