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Key Takeaways
Identity fraud in telecommunications increased by 12% in 2023, resulting in losses of $38.95 billion.
90% of telcos consider KYC a fundamental tool in fighting identity fraud and improving user experience.
Didit's free, unlimited digital identity infrastructure helps telcos verify users in just 30 seconds.
Robust KYC systems prevent fraud, offer operational benefits, and ensure regulatory compliance for telcos.
eSIMs are revolutionizing the way we connect. In fact, it is estimated that by 2025 there will be more than 2.5 billion devices with eSIM, providing instant connectivity. However, this technological coexistence requires a secure and efficient identity verification process, known as eKYC (electronic Know Your Customer).
Completing this process is a crucial step in some countries before activating an eSIM. Unlike the traditional identity verification system, eKYC is completely digital, allowing for quick and remote verification of the user's identity. This process ensures security and regulatory compliance, in addition to simplifying the activation experience for users of these virtual phone cards.
Therefore, in this article, we will explore in depth what eKYC is, why it is important for the eSIM telephony ecosystem, and how Didit, which offers a free, forever, and unlimited identity verification solution, helps telephony companies take full advantage of the benefits of eSIMs, offering a secure, efficient, and user-centric eKYC process.
eSIMs, or embedded SIMs, are the digital evolution of the traditional physical SIM card. This revolutionary technology allows people to activate a phone plan without the need to insert a physical card into their devices.
These SIMs integrated into terminals offer some key advantages for people.
Not only do users benefit from eSIMs, but telecommunications companies also find strategic advantages in these new integrated cards.
In the telecommunications sector, security and regulatory compliance are crucial aspects. This is where the concepts of KYC (Know Your Customer) and eKYC (electronic Know Your Customer) come into play.
KYC refers to the process of verifying a person's identity before establishing any commercial relationship with them. What is its main purpose? To ensure that the person is really who they say they are and to serve as a preliminary step to typical checks against money laundering or terrorist financing (AML).
Traditionally, this process has always been done manually, requiring the physical presence of the customer in the establishment and the presentation of paper documentation. However, with the advancement of technology and digitalization, eKYC has emerged as a natural evolution of the traditional KYC process. eKYC allows the entire verification process to be carried out remotely and digitally. This enables a more efficient process, saves time and resources, and improves the user experience.
Implementing a robust and reliable eKYC process is especially relevant for telephony companies and eSIM services. With the growing adoption of devices that work with these integrated cards, which allow people to activate phone plans remotely, it is essential to ensure compliance with identity verification requirements, both local and international.
In fact, a well-designed eKYC solution not only helps comply with regulations, but also provides clear benefits to telephone operators.
Reduced fraud risk
By rigorously verifying the identity of users, the risk of fraudulent activities is minimized. According to the Global CFCA Telecom Fraud Report, subscription or identity fraud accounts for between 35% and 40% of all scams that occur in the telecommunications industry. By implementing an eKYC process, this risk is significantly reduced by ensuring that only legitimate and verified individuals can activate and use these virtual cards.
Increased operational efficiency
An automatic identity verification process saves time and resources, enabling much faster and smoother onboarding. This not only reduces costs but also frees up resources that can be focused on other strategic initiatives. In addition, eKYC offers a more sustainable solution that reduces the use of paper and plastic, thus reducing the carbon footprint.
Compliance with different regulatory frameworks
eKYC allows telecommunications operators to comply with different regulations, both national and international, such as the General Data Protection Regulation (GDPR) or anti-money laundering (AML) directives. These regulations require companies to perform customer due diligence, authenticate their documents, and eliminate any suspicion of fraud or money laundering. Complying with these requirements avoids legal sanctions and enhances the company's reputation.
Scalability
A robust eKYC solution allows your company to grow and acquire new customers in an agile way, without the limitations or delays typical of manual processes. This electronic identity verification process opens the door to handling large volumes, which is crucial for scaling and opening up to new markets.
Improved user experience
Users can activate their eSIMs and start enjoying the service in just a few seconds, without the need to go to a physical store or wait for it to arrive by mail. As we mentioned before, this provides a much more satisfactory user experience.
The eKYC process is a fundamental pillar to ensure security and regulatory compliance during the activation of eSIMs. And, thanks to Didit and its free identity verification (KYC) solution, the process becomes a fast, secure, and efficient procedure, adapted to the changing needs of telecommunications companies.
We verify documentation from more than 220 countries and territories with advanced technology, which allows us to detect fraud and extract accurate data.
Our liveness test uses custom AI to detect deepfakes, verify people's identities during the process, and provide an optimal user experience.
We also offer real-time AML checks against more than 200 global databases, allowing us to detect PEPs (Politically Exposed Persons), sanctions, and other reputational risks.
In this way, Didit's free identity verification process offers several advantages for telephony companies:
Do you want to know more about our free identity verification (KYC) solution for your business? Contact our team! Click on the banner below and our team will answer all your questions.
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