What is Know Your Customer?
In a very practical way, Know Your Customer is nothing more than a process that aims to get to know the customer in more depth and prove their identity.
As we mentioned, this term is widely used in the financial market with the aim of getting to know customers, identifying them and preventing fraud.
When a company does not use any KYC process, especially if it operates in an area with sensitive information – as is the case with Fintechs and Online Casinos – it opens gaps for possible fraud.
There are many frauds in companies that do not use this technology, mainly frauds related to the creation of accounts in the names of third parties, given that the company does not have a process to verify the user's identity.
Reducing and mitigating the risk of fraud are just two of the benefits of the Know Your Customer process.
So that you better understand the implications of this technology, let's learn about some of the benefits that KYC brings:
Benefits of having KYC technology
In addition to the issue of anti-fraud, which is one of the main advantages of this type of process, KYC also contributes to four other points:
• Regulation;
• Greater security and crime prevention;
• Reputation
Starting with the issue of regulation, we see that there are sectors that require companies to confirm the user's identity. All this aimed at preventing fraud.
Speaking about the iGaming sector, with the regularization of online casinos in Brazil, the trend, which has not yet been confirmed, is for user identification to occur upon first registration.
Continuing with the example of the iGaming sector, based on Law 14,790, Art 23, one of the points mentioned is that the operator must have procedures for identifying the validity of the bettors' identity.
This is a clear example of how Know Your Customer ends up being necessary for Online Casinos.
Going further, we see that by applying KYC processes, your company will be able to bring greater security to users, in addition to preventing crimes.
If bookmakers adopt this technology, in addition to complying with regulations, they will end up reducing the number of frauds and preventing fraudsters from using third-party accounts.
Finally, companies that adopt this type of anti-fraud technology have a better reputation, as they are seen as companies that value user security.
Therefore, especially for online betting houses and casinos, the adoption of KYC is no longer an optional issue, but rather a necessity to protect users and comply with regulations.
Main applications for Know Your Customer
From the point of view of sectors that can adopt this type of anti-fraud process, there are several areas. The first of these is the area of fintechs or companies in the financial sector.
Nowadays, it is very common to see financial companies using Know Your Customer to prevent and block fraud attempts using third-party accounts.
Then, through identity validation processes, they are able to prove whether that data belongs and is validated by whoever is creating the account or not.
In addition to companies in the financial market, the iGaming area, which is our specialty here at Legitimuz, has been increasingly using KYC practices.
As we highlighted before, the need to validate the user, which is something that emerged with Law 14,790/Article 23, caused the largest online casinos in the country to look for Know Your Customer solutions.
Here at Legitimuz, we serve the biggest betting houses in Brazil as well as: Esportes da Sorte, OnaBet, Vai De Bet, BetPix 365 and many others.
In addition to fintechs and online casinos, there is also a strong need for KYC in insurance and technology companies.
With this, we can see that this area really only has to grow more and more.
Now that you know what Know Your Customer is and the benefits that this process brings, let's understand a little about Legitimuz's solution for the online casino market.
The best KYC solution for iGaming
If you don't already know Legitimuz, we are a Brazilian company specialized in anti-fraud technology for the iGaming market.
We have complete solutions to prevent fraud in your online casino. Thus, making you safer, compatible with regulations and reducing your losses.
Among the solutions we have here at Legitimuz, we can highlight the main ones:
1. Identity and Document Verification;
2. Proof of Address;
3. KYC;
4. Facial Recognition
In addition to several other specific casino solutions that we at Legitimuz have developed.
As we highlighted, some of the largest online casinos in the country are Legitimuz customers and approve of our solutions.
If you are a casino operator and want to implement KYC technology in your betting house and be ready for regulation, click and speak to a Legitimuz specialist.
Source: Legitimuz Blog
