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Whenever you try to register for a bank account, e-wallet, paylater service, or online loan, you’re usually asked to upload your ID card, take a selfie, or fill in personal details. Naturally, many people worry: “Is my data going to be misused?”
Relax—your data is safe.
But it’s completely normal to wonder why apps today require these steps. Why do we need to upload our ID and take a selfie every time?
Those steps are part of a process called KYC. In this article, we’ll break down what KYC really means, what the process includes, and why it’s so important in a digital world full of identity fraud risks.
What Is KYC?
KYC stands for Know Your Customer, a process used by authorized institutions such as financial institutions or digital service providers to identify and verify the identity of users.
The goal is to ensure the person using the service is truly who they claim to be—not someone using fake details, stolen identities, or impersonating others.
KYC helps prevent misuse of digital services, including financial fraud, identity theft, money laundering, and unauthorized access. It’s not just a formality or a way to collect your data, it’s an essential layer of digital protection.
Understanding the KYC Process
Here’s what usually happens during KYC:
1. Upload Your Identity Document
You’ll be asked to upload an ID card, driver’s license, or passport. It must be original and clear so the system can match the data with the information you provide.
2. Take a Selfie or Complete a Liveness Check
This selfie isn’t for display—it confirms that you’re a real, live human. Liveness detection checks movement or lighting to ensure the face is not a deepfake, printed photo, or replayed video.
3. Fill in Personal Information
This includes your full name, address, date of birth, and sometimes additional details such as occupation or income. These must match your ID.
4. Automatic or Manual Review
The system compares your selfie, document, and data. If everything matches, verification is instant. If not, it goes to manual review.
Why KYC Matters in the Digital Era
1. Preventing Fake Identities
Without KYC, platforms could be infiltrated by fake or fraudulent accounts.
2. Preventing Fraud & Deepfake Attacks
With deepfake technology becoming more common, liveness detection is crucial to distinguishing real users from AI-generated faces.
3. Protecting Platforms and Users
Strong identity verification reduces fraud and increases user trust.
Transactions That Require KYC
1. Opening a Bank Account Online
No branches, no queues—just upload your ID, take a selfie, and your account can be activated within minutes.
2. Registering for Loans or Paylater Services
KYC prevents fraudsters from applying for credit using stolen identities.
3. Investing in Mutual Funds or Crypto
Platforms must comply with anti–money laundering rules. KYC confirms funds come from verified users.
4. Registering for Digital Insurance
Insurance providers must know exactly who their policyholders are to prevent fraudulent claims.
The Evolution of Modern, Safer KYC
With biometrics, AI, and automation, KYC today is faster, more accurate, and more secure.
As a certified PSrE, VIDA provides modern KYC solutions such as:
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Identity Verification with Liveness Detection
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FaceToken & PhoneToken passwordless biometric authentication
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AI-based fraud detection for early threat identification
KYC is no longer just “getting to know your users”—it is a critical safeguard for your identity, data, and digital reputation.
For businesses and users alike, choosing a trusted KYC provider like VIDA ensures secure, seamless, and reliable digital interactions.
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