Identity Verification Blog- Signzy

Penny Drop Verification: Did you receive ₹1 from Signzy in your bank account?

Posted on June 27, 2024 | by Signzian

Someone transferred Rs 1 to my account through IMPS. Is someone trying to steal the money?
I got a message saying Re. 1 was transferred to my bank account through IMPS. I did not initiate any such transaction. What is it?

What possible fraud could be if someone credited only Re 1 to my bank account through IMPS?
Somebody has deposited an amount in my account through IMPS. My bank statement needs to show his name. Is it possible to know who has sent this amount?

How can I find out who credited money to my bank account through IMPS?
Why have I gotten a message from SBI that ₹1 has been credited to your account through IMPS, even though I have not done any transactions?

You might be trying to figure out why I’ve received ₹1 in my bank account when I haven’t initiated any transaction.

The answer is simple.
Penny Drop verification!

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What is Penny Drop Verification?

Penny Drop Verification is a type of method under instant bank account verification that financial institutions use to validate and ownership of a bank account. In this process, a small amount of money is deposited into the specified bank account. The account holder must then confirm the exact amount of this micro-deposit, proving they have access to and control over the account. This helps ensure that the account holder details provided are accurate and that the account is active.

It is a method in bank account verification to diligently determine bank details’ authenticity, validity, and account ownership by entering the bank account number and IFSC code.

Why did you receive ₹1 from Signzy in my bank account?

Let’s understand from an example.

Raj is working in a corporate firm seeking a loan from a leading private bank for his personal use. The bank has already done its KYC process and Raj is waiting for approval from the bank. Meanwhile, the bank as a part of the compliance process, needs to validate the details of his provided bank account to perform bank account verification for account ownership and credibility for the loan payout.

The bank uses this method to verify the bank account details instantly. In this process, the bank transfers a micro-deposit of ₹1 to the bank account to validate the beneficiary name, mobile number, and account status for a loan payout.

It is a type of bank account verification that instantly validates the account ownership and credibility of the bank account details.

The big question: But I haven’t taken a loan from any bank.

Correct. Bank account verification is done by a firm, business, or bank when they need to validate the account’s credibility and account status. There could be multiple reasons why you have received ₹1 in your bank account.

Bank account verification: The Use cases

Banks

Use Case: Customer Onboarding and Account Opening

Purpose: To ensure that new customers’ bank accounts are valid and belong to them.
Process: During the onboarding process, banks perform bank account verification to deposit a small amount into the customer’s provided account, for account ownership and validity check.
Benefit: Reduces the risk of fraudulent accounts and ensures compliance with KYC (Know Your Customer) regulations and be compliant with regulatory requirements.

Payment Service Providers

Use Case: Merchant and User Account Verification

Purpose: Verify merchants’ and users’ bank accounts for secure transactions and payouts.
Process: Payment service providers use bank account verification verification to validate the bank accounts linked to their platform. This ensures that the account details provided are correct and that the account is active.
Benefit: Enhances the security of the payment process, reducing the risk of payment failures and fraud.

Microfinance Institutions

Use Case: Loan Disbursement

Purpose: To confirm the bank accounts of borrowers before disbursing loans.
Process: Before releasing funds, microfinance institutions perform bank account verification to ensure the accuracy of the borrower’s account details.
Benefit: Prevents disbursing loans to incorrect or fraudulent accounts, ensuring that funds reach the intended recipients.

Wallet Service Providers

Use Case: Linking Bank Accounts for Fund Transfers

Purpose: Verifying bank accounts linked to digital wallets for seamless fund transfers and payouts.
Process: Wallet service providers use bank account verification to ensure that the linked bank account is valid and controlled by the wallet user.
Benefit: Ensures secure and accurate fund transfers between the wallet and bank accounts, improving user trust and platform reliability.

Equity and Investment Firms

Use Case: Investment Account Funding and Withdrawals

Purpose: To verify the bank accounts of investors for funding investments and processing withdrawals.
Process: Investment firms use bank account verification to validate investor bank details before allowing deposits and withdrawals.
Benefit: Reduces the risk of errors and fraud in financial transactions, ensuring that funds are transferred to and from legitimate accounts.

Marketplaces

Use Case: Vendor and Seller Payouts

Purpose: To confirm the bank accounts of vendors and sellers for accurate payouts.
Process: Marketplaces perform bank account verification for vendors and sellers to ensure that payout information is correct.
Benefit: Ensures timely and accurate payouts, improving vendor and seller satisfaction and reducing administrative overhead.

Insurance Companies

Use Case: Policyholder Payouts and Premium Collection

Purpose: To verify the bank accounts of policyholders for processing claim payouts and collecting premiums.
Process: Insurance companies use bank account verification to confirm the bank details of policyholders, ensuring that transactions are conducted smoothly.
Benefit: Ensures that claim payouts are made to the correct accounts and that premium collections are accurately processed, reducing the risk of financial discrepancies and fraud.

Is it legal for Signzy to perform bank account verification without my knowledge?

Signzy works as a verification agency on behalf of banks, investment firms, payment service providers, etc., to ensure the details provided by beneficiaries during the onboarding process, are valid and eliminate any fraud instances of identity theft, account takeover, etc., while being 100% compliant to regulatory laws.

Signzy does not store any sensitive information about its clients. With 100% assurance, we validate bank accounts based on the client’s request and for verification purposes only.

How to stay protected from fraudulent accounts?

Every time you receive money in your bank account, the amount is displayed in your SMS template to two decimal places. In a hurry or when you’re not focused, you can read Rs 200.00 as Rs 20,000. This is another reason con artists don’t allow you much time to respond to their schemes.

For example: Received Rs 200.00 in your Bank AC X4182 from 123456789@sbi on 29-05-24. UPI Ref: 123456789123.” This is the template of a UPI money received SMS.

Here are some suggestions to avoid falling into this kind of UPI scam:

Always double-check your payment requests: Before approving any UPI request, double-check who sent it and whether it is a request to pay or receive money. Be aware of sudden financial requests.
Verify sender information: If you receive a payment request from an unfamiliar source or for an unexpected amount, phone or message the sender to confirm their information.
Be wary of unwanted texts and collection requests: Scammers frequently send unsolicited messages with misleading or false claims. Do not respond to or authorize any requests without first validating the sender’s identity and the transaction’s purpose.

Key Points to Consider for Bank Account Number Verification in India

Bank account number verification is crucial for protecting individuals and businesses from fraud, ensuring compliance with all regulatory requirements for instant verification, and fostering trust within the financial ecosystem. Despite its apparent simplicity, navigating the complexities of bank account verification in India can be challenging. Here are key considerations:

Guidelines and Best Practices

Choosing the Right Method: Select robust verification methods such as API integration to achieve real-time accuracy and enhanced security.
Data Accuracy: Prioritize the accurate collection of customer information and thorough document validation to minimize discrepancies and errors.
Transparency and Communication: Keep customers informed about the verification process, necessary documentation, and any potential delays.
Security Infrastructure: Invest in strong data security measures and adhere to best practices for data protection.

Importance of Accurate Data

Fraud Prevention: Implementing instant verification of bank details and ensuring data accuracy reduces the risk of identity theft, financial scams, and money laundering.
Streamlined KYC: Accurate information facilitates the Know Your Customer (KYC) process, leading to faster onboarding and smoother transactions.
Reduced Financial Losses: Verified accounts result in fewer chargebacks, fraudulent transactions, and disputes.

Bank account verification: New age of account verification

Are you a business, a bank, a PSP, or an investment firm looking for a bank account verification process with account number and IFSC code or UPI handle?

Signzy provides multiple bank account verification methods to ensure account credibility and ownership as per your business requirement, onboarding, and verification process.

Intelligent auto-routing for penny drop verification

Eliminate the risk of fraudulent accounts with AI-enabled auto-routing during penny testing and know the exact reason for verification failures such as account frozen or closed, perform bulk account verification in one go via simple Excel/CSV upload, utilize our proprietary name match score for additional authentication, and maintain a complete audit trail for transparency and compliance.

Verify beneficiary account ownership with reverse penny drop

Authentication mechanism for proactive fraud prevention, increase accuracy for real-time account verification, and maintain a complete audit trail for transparency and compliance.

Validate any UPI handle to ensure secure transactions

Instantly verify bank accounts linked with UPI IDs, increase accuracy for real-time account verification, verify accounts on the fly for accurate onboarding and payouts, and perform bulk account verification in one go via simple Excel/CSV upload.

Verify bank details with the IFSC code

Get a weekly updated IFSC code list for instant and accurate verification of bank details, instantly know whether IMPS is enabled, and perform bulk account verification in one go via simple Excel/CSV upload to the system.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs, easily added to any workflow with simple widgets

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.
Contact us directly!

How Signzy Can Help Banks Combat the Rising Tide of Fraud

Posted on February 1, 2024 | by Signzian

News headlines across India blared: “Banks Recorded Rs 1 Trillion in Fraud-Related Write-Offs.” A staggering figure, it paints a concerning picture of a financial landscape riddled with deceit. While Dinesh Khara, Chairman of State Bank of India, claims the ‘loan write-off era’ is ending, the statistics tell a different story – one of evolving fraudsters and vulnerable systems.

Digging deeper into the data from Business World, we see a worrying shift: private banks now dominate fraud-related write-offs, their share skyrocketing from 12% in 2016 to 74% in 2023. Even more alarming, while the overall number of frauds has gone up, the financial involvement has decreased. This suggests smarter, more sophisticated scams slipping through the cracks.

So, where does hope lie? Enter technology, and with it, Signzy.

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The Technological Shield

Traditional fraud detection methods are akin to swatting flies with a newspaper – reactive, inefficient, and ultimately futile. The need of the hour is proactive, intelligent systems that anticipate and thwart fraud before it can wreak havoc. This is where advancements in AI and machine learning take center stage.

Signzy Steps Up:

Signzy’s suite of digital trust solutions utilizes cutting-edge AI and ML algorithms to create an impregnable barrier against fraud. Here’s how:

Digital KYC and Onboarding: Verify customer identities in real-time with facial recognition, liveness detection, and document verification. Eliminate fake or stolen identities used for fraudulent activities.
Continuous Transaction Monitoring: Analyze every transaction in real-time, flagging suspicious patterns and anomalies that might indicate fraud. Say goodbye to delayed detection and hefty losses.
AI-powered Risk Scoring: Build dynamic risk profiles for each customer based on their behavior, transaction history, and external data sources. Proactively identify high-risk individuals and transactions before they can cause damage.
Automated Investigation and Alerting: Receive instant alerts for suspicious activity, allowing for swift action and minimizing potential losses. No more time lost in manual investigations.

The Future of Security in Banks

The battle against fraud is a constant evolution, and Signzy is at the forefront. With its commitment to continuous innovation and cutting-edge solutions, Signzy empowers banks to build a future of trust and security. Imagine a financial landscape where:

Loan approvals are instant and secure, free from the fear of fraudulent applications.
Transactions flow seamlessly, unhindered by the specter of hidden scams.
Customer trust thrives, knowing their finances are protected by an invisible yet invincible shield.

This is the future Signzy is building, brick by digital brick. Let’s join hands and create a banking ecosystem where fraud is not a headline, but a distant memory.

About Signzy

Visit www.signzy.com for more information about us.
Contact us directly!

How Signzy Empowers Payment Aggregators in a Licensed Landscape

Posted on January 31, 2024 | by Signzian

Before we start, let’s know, what are Payment Aggregators? – Payment aggregators are financial entities that facilitate processing of transactions between merchants and customers without the need for multiple direct merchant accounts.

Well, the Indian digital payments scene just got a shot in the arm!

The Reserve Bank of India (RBI) has finally granted Payment Aggregator (PA) licenses to key players like Razorpay and Cashfree, paving the way for a vibrant and regulated ecosystem. This move signifies a significant leap forward for the industry, bringing much-needed clarity and stability.

But with great power comes great responsibility. Obtaining a PA license isn’t just about a celebratory press release. It’s about meeting stringent compliance requirements and ensuring robust merchant onboarding, monitoring, and underwriting practices. This is where the real challenge lies, and this is where Signzy steps in as your trusted partner.

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Understanding the Power of a Payment Aggregators License

Remember the days of uncertainty around merchant onboarding and compliance? The PA license puts those concerns to rest. It sets the gold standard for digital payment acceptance, ensuring consumer protection and fostering trust in the system. This is a game-changer for payment aggregators, opening doors to new markets and partnerships, and ultimately, fueling growth.

The Thorny Side of the Rose: Challenges in the New Landscape

While the PA license unlocks opportunities, it also presents its own set of challenges. Let’s face it, the current ecosystem faces hurdles in:

Merchant Onboarding: Streamlining the process while ensuring thorough KYC and AML checks.
Merchant Monitoring: Keeping a watchful eye on suspicious activity and preventing fraud.
Underwriting: Accurately assessing risk and extending credit responsibly.

These challenges can be daunting, but they don’t have to be insurmountable.

Signzy: Your Digital Shield in the Payment Aggreagators Arena

Signzy offers a comprehensive suite of solutions specifically designed to address the challenges faced by payment aggregators in the new PA landscape. We empower you with:

Automated Onboarding: Say goodbye to manual paperwork and embrace seamless digital verification with AI-powered KYC and AML tools.
Real-time Monitoring: Gain unparalleled visibility into your merchant activity with advanced fraud detection and risk management systems.
Data-driven Underwriting: Leverage the power of data and AI to make accurate risk assessments and extend credit with confidence.

Harmony with Regulations and Networks

Signzy’s solutions are meticulously aligned with the latest RBI regulations and payment network standards. We understand the importance of compliance and work closely with regulatory bodies and financial institutions to ensure your operations remain seamless and secure.

Conclusion

The PA license is a watershed moment for the Indian digital payments industry. It unlocks immense potential, but it also demands robust solutions to navigate the challenges. Signzy stands as your trusted partner, empowering you to thrive in this new landscape with cutting-edge technology and a commitment to compliance.

Ready to embrace the future of digital payments? Contact Signzy today and discover how we can help you navigate the PA landscape with confidence and ease. Visit www.signzy.com for more information about us.

Top 5 Emerging Banking Frauds in 2024

Posted on January 11, 2024 | by Signzian

The Reserve Bank of India reported that in the financial year 2023, bank frauds amounted to more than 302.5 billion Indian rupees, marking a decrease from over 1.3 trillion rupees in 2021. However, the number of bank fraud cases increased to more than 13,000 in 2023, up from the previous year!

The financial sector in 2024 stands at a pivotal point, balancing on the edge of technological innovation and the rising tide of sophisticated fraud schemes. The digital era has not only transformed the way financial services operate but also how fraud is committed. This shift demands a proactive and knowledgeable approach to safeguard against emerging threats.

In this comprehensive exploration, we delve into the top five fraud trends anticipated in the financial sector in 2024 and outline robust strategies for their mitigation.

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Deepfake Technology in Identity Fraud

One of the most alarming developments in digital fraud is the use of deepfake technology. Deepfakes, which leverage artificial intelligence to create hyper-realistic but entirely fabricated images and videos, are increasingly being used in identity fraud. Fraudsters can now create convincing fake IDs, or even video calls to impersonate clients or officials, leading to unauthorized access to financial accounts and sensitive information.

In 2023, we witnessed a 30% increase in deepfake-related crimes, and this trend is only expected to rise in 2024. The financial sector, with its reliance on digital identity verification, is particularly vulnerable. The sophistication of these fakes makes them challenging to detect, posing a significant threat to the integrity and security of financial transactions.

Mitigation Strategies:

Combatting deepfake-related fraud requires a multi-faceted approach:

Advanced Detection Technology: Implementing AI-driven verification systems that can detect anomalies and inconsistencies in digital images and videos is crucial. These systems should be trained to recognize the subtle signs of deepfake manipulation.
Biometric Verification: Incorporating biometric data, like fingerprints or retina scans, adds an additional layer of security. Unlike visual representations, biometric data is much harder to replicate or forge.

Sophisticated Phishing Attacks via Artificial Intelligence

In 2024, AI-enhanced phishing attacks are becoming increasingly sophisticated. These attacks use AI to tailor messages and bait that are incredibly convincing and personalized, making them harder to distinguish from genuine communications. Such attacks can result in unauthorized access to sensitive financial data and substantial financial losses.

Mitigation Strategies:

Advanced Email Filtering Solutions: Employ AI-driven email filtering tools that can detect and block sophisticated phishing attempts.
Regular Security Training: Conduct frequent training for employees to recognize and report advanced phishing attempts.
Multi-Factor Authentication (MFA): Implement MFA to add an extra layer of security, reducing the risk of compromised credentials.
Real-Time Monitoring and Response: Establish a 24/7 monitoring system to detect and respond to phishing attacks promptly.

Cross-Border Transaction Frauds

As global financial transactions increase, so do cross-border frauds. These involve complex schemes that exploit differences in regulatory environments across countries, making detection and recovery difficult.

Mitigation Strategies:

International Collaboration: Collaborate with international financial institutions and law enforcement agencies for information sharing and joint efforts in fraud prevention.
Advanced Analytics: Utilize advanced analytics to monitor and analyze cross-border transactions for suspicious patterns.
Customer Verification: Implement stringent customer verification processes for international transactions.
Regulatory Compliance: Ensure strict adherence to international financial regulations to prevent exploitation.

Vulnerabilities in Digital Customer Onboarding and Verification

The shift towards digital customer onboarding in the financial sector, while convenient, has opened up new vulnerabilities. Fraudsters are increasingly exploiting these weaknesses, especially in identity verification and customer due diligence processes. This trend is manifesting in various forms, including synthetic identity fraud and manipulation of digital documentation.

Mitigation Strategies:

Advanced Identity Verification Tools: Leverage cutting-edge technologies like biometric verification and AI-driven document analysis to enhance the accuracy of identity verification.
Ongoing Process Evaluation and Enhancement: Continuously assess and refine digital onboarding processes to address emerging vulnerabilities.
Integration of Diverse Data Sources: Employ multiple and varied data sources to corroborate customer information, strengthening the verification process.

KYC Data Breaches and Manipulation

KYC data is a goldmine for fraudsters. In 2024, there is a growing trend of sophisticated attacks aimed at breaching and manipulating KYC data. These breaches not only threaten customer security but also undermine the credibility of financial institutions.

Mitigation Strategies:

Robust Data Security Measures: Implement and constantly update data encryption and other security measures to protect KYC data.
Regular Security Audits: Conduct frequent and thorough audits of KYC data handling and storage practices.
Advanced Anomaly Detection Systems: Use AI and machine learning-based systems to detect unusual patterns in data access or modification, indicating potential breaches.

Harnessing Signzy’s Expertise to Combat Emerging Fraud Trends

As we navigate through the evolving landscape of financial fraud in 2024, it becomes clear that the challenges are as dynamic as they are daunting. The trends identified – from the misuse of deepfake technology and AI-enhanced phishing attacks to the vulnerabilities in digital customer onboarding and the sophisticated breaches in KYC data – all point towards an urgent need for innovative and robust countermeasures. This is where Signzy’s expertise and solutions become invaluable.

Signzy, with its cutting-edge technological capabilities and deep understanding of the financial sector, is uniquely positioned to address these emerging threats:

Combatting Deepfake and AI-Phishing Threats: Signzy’s advanced AI-driven solutions can play a pivotal role in detecting and neutralizing deepfake manipulations and AI-based phishing attempts. By integrating sophisticated algorithms capable of identifying even the subtlest anomalies, Signzy can provide a crucial layer of defense against these highly advanced fraud techniques.
Securing Digital Customer Onboarding: Signzy’s technology excels in enhancing the security of digital onboarding processes. By utilizing a combination of biometric verification, real-time data analysis, and AI-powered document verification, Signzy can significantly reduce the risk of identity fraud and ensure a secure onboarding experience.
Safeguarding KYC Data: In the face of increasing KYC data breaches, Signzy’s secure data handling and encryption methodologies are essential. By employing rigorous data protection measures and conducting regular security audits, Signzy ensures the integrity and confidentiality of sensitive customer information, thereby fortifying trust and compliance.
Empowering Institutions with Real-Time Analytics and Compliance Tools: Signzy’s real-time analytics and compliance solutions enable financial institutions to stay ahead of fraudsters. By providing advanced tools for monitoring transaction patterns and customer behavior, Signzy aids in promptly detecting and responding to suspicious activities, thereby mitigating potential fraud.
Partnering for a Secure Financial Ecosystem: Signzy’s commitment to collaboration and innovation positions it as a leader in the fight against financial fraud. By partnering with financial institutions, regulatory bodies, and technology experts, Signzy fosters a more secure and resilient financial ecosystem.

Together, let’s turn these challenges into opportunities to build a more secure, trustworthy financial future. The next step in financial security isn’t just about fighting fraud; it’s about pioneering the path forward!

Visit www.signzy.com for more information about us.
Contact us directly!

Combating Subscription Fraud in Telecom

Posted on January 8, 2024 | by Signzian

In our previous blog, we delved into the complex and challenging world of subscription fraud in the Indian telecom sector, shedding light on its mechanisms and impact. Now, we shift our focus to solutions and strategies. In this blog, we’ll explore the effective measures and innovative approaches that can be employed to combat subscription fraud. From cutting-edge technologies to robust regulatory frameworks, join us as we navigate through the proactive steps that telecom companies, regulators, and consumers can take to safeguard against these fraudulent activities.

In the fast-paced world of digital subscriptions, India has emerged as a fertile ground for opportunity. From streaming services to OTT platforms, e-commerce giants to food delivery apps, the subscription landscape is booming. However, this rapid growth has also attracted unwanted attention – the cunning specter of subscription fraud.

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The Grim Reality of Subscription Fraud in India

Subscription fraud manifests in various forms, each aiming to exploit vulnerabilities in the onboarding process. Common tactics include:

Synthetic identities: Fraudsters create fake identities using stolen or fabricated data, often including PAN cards, Aadhaar numbers, and even bank account details. These seemingly legitimate identities then trick platforms into granting subscriptions without any intention of future payments.
Account Takeover (ATO): Hackers steal existing user credentials and gain access to active subscriptions, racking up charges before the rightful owner realizes the breach.
Sim Swapping: By tricking mobile operators into transferring phone numbers associated with subscriptions, fraudsters divert billing notifications and gain unauthorized access.
Carding: Stolen credit card information is used to subscribe to services, leaving the rightful cardholder to deal with the financial repercussions.

These fraudulent activities cause significant financial losses, erode trust in digital platforms, and create a negative user experience. A 2021 report by Juniper Research estimated that global subscription fraud will cost businesses a staggering $20 billion by 2025. In India, the problem is particularly acute, with a 2022 report by Experian revealing that 32% of online transactions are attempted using fraudulent data.

Why is India Vulnerable?

Several factors contribute to India’s susceptibility to subscription fraud:

Rapid digitization: The rapid adoption of digital services, coupled with a growing tech-savvy population, presents a vast attack surface for fraudsters.
Weak KYC norms: Traditional paper-based KYC verification processes are often unreliable and susceptible to manipulation.
Financial inclusion: The increasing use of digital wallets and other alternative payment methods creates additional avenues for fraud.
Lack of awareness: Many users remain unaware of the red flags and risks associated with online subscriptions, making them easy targets.

How is Signzy Combating Subscription Fraud?

In this scenario, Signzy emerges as a beacon of hope.

Signzy’s AI-powered identity verification platform leverages cutting-edge technologies to combat subscription fraud and safeguard businesses and users alike. Here’s how:

Digital Document Verification: Signzy’s solution verifies the authenticity of uploaded documents like PAN cards, Aadhaar numbers, and bank statements in real-time. Advanced checks like liveness detection and document tampering analysis prevent the use of forged documents.
Video KYC: Conducting live video KYC through Signzy’s platform verifies a user’s identity by comparing their facial features with their government-issued ID photos. This human-in-the-loop approach offers an extra layer of security.
Fraud Screening: By unearthing hidden patterns and assigning a quantifiable risk score, Signzy empowers platforms to make informed decisions and foster a secure and thriving digital ecosystem. In the ongoing battle against subscription fraud, Signzy’s vigilant screening stands as a beacon of hope, ensuring that the light of trust continues to shine on the path of digital progress.
Continuous Monitoring: Even after onboarding, Signzy’s solution provides ongoing monitoring of user activity, detecting suspicious transactions and potential ATO attempts in real-time.

Beyond Technology: Building a Collaborative Ecosystem

Tackling subscription fraud requires a multi-pronged approach. Signzy actively collaborates with:

Financial institutions: Sharing data and insights to identify and blacklist fraudulent actors.
Law enforcement agencies: Providing assistance in tracking down and prosecuting cybercriminals.
Industry bodies: Raising awareness about subscription fraud and advocating for stronger KYC norms.
Consumers: Educating users about safe online practices and encouraging them to report suspicious activity.

A Brighter Future

By combining cutting-edge technology with collaborative efforts, Signzy is leading the fight against subscription fraud in India. As awareness grows and platforms adopt robust verification processes, the digital landscape will become a safer and more secure space for both businesses and users.

The journey to eradicate subscription fraud is ongoing, but with proactive measures and innovative solutions like Signzy, we can pave the way for a brighter future of trustworthy and secure digital subscriptions in India.

About Signzy

Visit www.signzy.com for more information about us.
Contact us directly!

Dormant Accounts: Tighter Fraud Control by RBI

Posted on January 5, 2024 | by Signzian

Dormant accounts: Waking up to easier reactivation and tighter security with RBI’s new rules! The Reserve Bank of India (RBI) has introduced new regulations to simplify reactivating dormant bank accounts and tackle fraud risks. Key changes include location-independent KYC submission, video-based customer identification (V-CIP), stricter monitoring, and term deposit reviews. These reforms benefit both account holders (easier reactivation, no fees) and banks (reduced paperwork, fraud prevention).

Let’s dive in!

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Reactivating Dormant Accounts Just Got Easier!

Gone are the days of trekking to your original bank branch just to reactivate a dormant account. Under the new rules, you can now submit your KYC documents at any branch, regardless of its location. This flexibility makes the process more convenient and accessible, especially for those who have moved or whose original branch is no longer operational.

For the tech-savvy, the RBI offers a futuristic option: video-customer identification process (V-CIP). If your bank provides this service, you can skip the physical visit altogether and get your account back on track through a secure video call.

But the best part? No more surprise fees or penalties! Banks are prohibited from charging you for the reactivation process itself, and they can’t penalize you for not maintaining a minimum balance in your dormant account. This removes a financial barrier and encourages account holders to bring their neglected funds back into circulation.

Enhanced Security Measures for Dormant Accounts

While simplifying reactivation, the RBI hasn’t forgotten about the lurking threat of fraud in dormant accounts. To combat this, banks are now mandated to conduct annual reviews of accounts that haven’t seen any customer transactions for over a year. This proactive approach helps identify dormant accounts that might be vulnerable to unauthorized access or misuse.

Once an account is reactivated, it will be placed under stricter scrutiny for at least six months. This heightened monitoring, conducted at higher levels within the bank, aims to detect any suspicious activity and nip potential fraud in the bud.

Term Deposits and Zero-Balance Accounts Covered

The RBI’s reach extends beyond just dormant savings accounts. Term deposits, for instance, are also covered under the new regulations. Banks must now review these deposits if you haven’t withdrawn the proceeds or transferred them to another account after maturity. This prevents your funds from slipping into the limbo of unclaimed deposits and ensures you receive what you’re rightfully owed.

Even zero-balance accounts, often used for government schemes and scholarships, receive special consideration. These accounts won’t be classified as “inoperative” even if unused for two years, recognizing their specific purpose and ensuring beneficiaries continue to receive their entitlements.

A Timeline for Dormant Account Reactivation

Mark your calendars! The RBI’s new dormant account regulations take effect April 1, 2024, for all banks, including yours. From forgotten savings accounts to matured term deposits and special zero-balance accounts, it’s time to streamline your processes and ensure compliance.

The Takeaway

The RBI’s new rules for dormant accounts are a win-win for both convenience and security. They make reactivation easier, eliminate unnecessary fees, and provide robust safeguards against fraud. The time to act is now! With April 1, 2024, just around the corner, prepare to welcome a surge in reactivated accounts and unlock their full potential. Dust off those dormant files, partner with Signzy, and watch your business flourish under the RBI’s secure and convenient new regulations.

Signzy VKYC: Seamless Dormant Account Reactivation Under New RBI Rules

The RBI’s new regulations have made revitalizing dormant accounts a breeze, but banks still face challenges verifying customer identities efficiently. This is where Signzy’s VKYC API shines, streamlining the KYC process and making reactivation even smoother.

Imagine a customer walking into any branch across your network, eager to resurrect their long-dormant account. With Signzy’s VKYC API integrated into your system, the process is as simple as a video call. No more mountains of paperwork, no more waiting for physical document verification. The customer simply connects with a representative through a secure video link, presents their ID, and voilà! Their identity is verified in real-time, thanks to Signzy’s AI-powered facial recognition and document authentication.

The benefits for banks are numerous. Reduced paperwork cuts processing costs and turnaround times, leading to happier customers and improved operational efficiency. The real-time verification eliminates fraud risks associated with traditional, document-based methods. Plus, the VKYC API’s flexibility allows integration with existing infrastructure, making implementation seamless and hassle-free.

In a nutshell, Signzy’s VKYC API is the perfect complement to the RBI’s new dormant account regulations. It simplifies reactivation for customers, minimizes risk and cost for banks, and ultimately promotes a more secure and efficient financial ecosystem. So, the next time you’re thinking about dormant accounts, remember that Signzy’s VKYC API can be your key to unlocking a win-win situation for everyone involved.

What is Subscription Fraud in Telecom?

Posted on January 3, 2024 | by Signzian

In the modern age, where smartphones are extensions of ourselves and data plans fuel our digital lives, the world of telecommunications is a bustling hub of activity. But amidst the convenience and connectivity lurks a shadow – the insidious threat of subscription fraud. This blog delves into the murky depths of this pervasive crime, illuminating its mechanics, consequences, and most importantly, the strategies for effective combat.

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Understanding Subscription Fraud

At its core, subscription fraud is a deceptive scheme where individuals obtain telecom services and devices without any intention of paying. They operate like phantoms, exploiting vulnerabilities in onboarding processes and vanishing into thin air, leaving behind a trail of unpaid bills and financial losses for telecom companies.

The Many Faces of a Master of Deception

Subscription fraud manifests in various guises, each a testament to the ingenuity (or perhaps desperation) of the perpetrators. Here are some of the most common forms:

Synthetic Identities: Fraudsters craft fake personas using stolen or fabricated data, complete with convincing documentation, to fool verification checks and secure subscriptions.
Account Takeover (ATO): Hackers breach existing accounts, hijacking phone numbers and exploiting vulnerabilities to rack up charges before the rightful owner notices.
Sim Swapping: By tricking mobile operators into transferring phone numbers, fraudsters divert billing notifications and gain unauthorized access to subscriptions.
Carding: Stolen credit card information is used to subscribe to services, leaving the cardholder to shoulder the financial burden.

How Subscription Fraud Breeds More Trouble?

The consequences of subscription fraud extend far beyond unpaid bills. It can:

Erode trust: When customers fall victim to fraud, it can damage their trust in telecom providers and the digital ecosystem as a whole.
Fuel other scams: Stolen identities and compromised accounts can be used for further fraudulent activities, expanding the reach of the criminal network.
Hinder innovation: The financial losses incurred due to fraud can discourage telecom companies from investing in new technologies and services.

Unveiling the Framework

Subscription fraud typically operates within a well-defined framework:

Data Acquisition: Fraudsters acquire stolen or fabricated data, including personal information, identity documents, and financial details.
Onboarding Manipulation: They exploit loopholes in verification processes to create fake accounts or take over existing ones.
Device Procurement: In some cases, they aim to obtain high-end phones or other devices bundled with subscriptions, often reselling them on the black market.
Billing Avoidance: They employ various tactics to avoid paying bills, such as disappearing or using stolen payment methods.

Strategies to Combat Subscription Fraud

The battle against subscription fraud requires a multi-pronged approach:

Robust Verification: Implementing strong KYC (Know Your Customer) procedures with advanced document verification and liveness detection can deter fraudsters.
Behavioral Analytics: Monitoring user behavior during onboarding and usage can reveal suspicious patterns, such as rapid sign-ups or unusual activity.
Fraud Scoring: Assigning risk scores based on various data points can help prioritize high-risk accounts for further scrutiny.
Collaboration: Sharing information and best practices across the industry, including law enforcement agencies, can help track down and dismantle criminal networks.
Customer Education: Raising awareness among customers about the risks of subscription fraud and encouraging them to report suspicious activity is crucial.

Signzy: Fight Against Subscription Fraud

Signzy’s platform leverages advanced technologies like video KYC, document verification, and behavioral analytics to identify and thwart fraudulent attempts in real-time.

By embracing robust verification processes, collaborative efforts, and innovative technologies like Signzy’s solutions, the telecom industry can create a more secure and trusted landscape for both customers and providers. Together, we can turn the tide against the phantoms of subscription fraud, ensuring that the digital future of telecommunications is one of seamless connectivity, financial stability, and peace of mind.

About Signzy

Visit www.signzy.com for more information about us.
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Traditional Stamping vs E-Stamping

Posted on January 2, 2024 | by Signzian

The stamp, once a ubiquitous symbol of officialdom, is facing a modern challenge: the rise of eStamping. This digital revolution in document authentication offers convenience and security in stark contrast to the traditional methods of physically procuring and affixing stamps. But is eStamping truly the vanguard, or does the old guard of paper and ink still hold its ground? Let’s delve into a comparative analysis, weighing the pros and cons of each approach.

Table of Contents

Traditional Stamping Methods

For centuries, physical stamps have been the trusted guardians of document integrity. Their tangible presence, with embossed seals and watermarks, offered a sense of security and tamper-proof validation. The process is familiar: visit a stamp vendor, purchase the required denomination based on document value, and meticulously affix the stamp. While this method is deeply ingrained in legal and financial systems, it comes with its own set of pros and cons.

Pros:

Tangible evidence: Physical stamps offer a tangible element, providing a sense of security and ease of verification for some users.

Accessibility: Traditional stamps are readily available in most locations. This makes them accessible even in areas with limited internet connectivity.

Familiarity: The method is well-understood by older generations accustomed to paper-based transactions.

Cons:

Time-consuming: Acquiring stamp paper, calculating stamp duty, and affixing stamps can be time-consuming, especially for complex documents.

Prone to errors: Manual calculations and affixing stamps leave room for human error, potentially invalidating documents.

Security concerns: Counterfeiting and forgery of physical stamps pose security risks, raising concerns about document authenticity.

Environmental impact: Paper production and transportation associated with physical stamps contribute to environmental degradation.

E-Stamping

eStamping, on the other hand, leverages the power of the internet to revolutionize document authentication. Instead of physical stamps, documents are electronically stamped through secure online platforms. The process involves selecting the required denomination, paying electronically, and downloading a digital stamp certificate. This certificate is then embedded within the document, ensuring its authenticity and validity.

Pros:

Convenience: eStamping can be done anytime, anywhere, from the comfort of one’s home or office.

Speed and efficiency: The process is significantly faster, generating eStamp certificates in minutes compared to the hours or days it can take with physical stamps.

Security: eStamp certificates are encrypted and tamper-proof, minimizing the risk of fraud and forgery.

Transparency and auditability: The entire eStamping process is digitally recorded and easily traceable, enhancing transparency and accountability.

Environmental benefits: eStamping eliminates the need for paper production and transportation, contributing to a more sustainable future.

Cons:

Digital dependence: Users require internet access and basic computer literacy to utilize eStamping platforms.

Initial learning curve: Familiarity with the eStamping process may require initial training or support, particularly for non-tech-savvy users.

Potential technical glitches: While rare, technical issues with eStamping platforms could temporarily disrupt document validation.

The adoption of eStamping is rapidly gaining momentum. In India, for instance, eStamping has witnessed a remarkable rise since its implementation in 2011. Statistics reveal that in 2022-23, over 85% of stamp duty collections were through eStamping, showcasing its growing popularity and efficiency.

Furthermore, the Indian government estimates that eStamping has saved over Rs. 10,000 crores in printing costs and revenue leakage since its inception. This translates to significant financial savings for the government and a more efficient allocation of resources.

The Path Forward

While eStamping offers undeniable advantages, it’s important to recognize that traditional stamping methods still hold value. For certain documents like wills and powers of attorney, physical stamps might be preferred for evidentiary purposes. Additionally, rural areas with limited internet connectivity might still rely on physical stamps for convenience.

Therefore, the future of document authentication likely lies in a hybrid approach. eStamping will undoubtedly become the dominant form for its efficiency and security benefits, but physical stamps might still play a role in specific cases.

Conclusion

The battle between eStamping and traditional methods is not a winner-take-all scenario. Both approaches offer unique advantages and cater to different needs. The key takeaway is that the digital revolution is transforming document authentication, and eStamping is leading the charge with its promise of convenience, security, and efficiency. Traditional stamping methods, though time-tested, need to adapt to the changing landscape to remain relevant and accessible. By striking a balance between the two, we can ensure that stamping remains a reliable and accessible component of modern life.

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Telecommunication Fraud: The Top 10

Posted on January 2, 2024 | by Signzian

Telecommunication fraud in India is a growing concern, with sophisticated scams targeting both providers and consumers. These deceptive practices range from illegal SIM swaps to intricate phishing schemes, costing the economy and individuals significantly. As digital adoption accelerates, so does the urgency for robust fraud detection and prevention measures.

India’s booming telecom sector, with its vast and tech-savvy user base, unfortunately attracts not just legitimate businesses but also cunning fraudsters. These digital demons prey on vulnerabilities in the system, costing telecom companies billions and leaving users bewildered and out of pocket.

Today, we shine a light on the top 10 telecommunication frauds plaguing India, equipping you with the knowledge to outsmart the tricksters and safeguard your mobile experience.

Table of Contents

International Revenue Sharing Fraud (IRSF): The most persistent type of Telecommunication fraud!

In IRSF, fraudsters lease premium-rate phone numbers designed to charge high rates for calls. They then illegally access a company’s phone system to call these numbers, racking up large charges that the company unknowingly pays. A portion of these charges is kicked back to the fraudsters. It’s a significant issue for telecom companies because it can lead to enormous unexpected bills and there’s little regulation to help victims recover the costs.

Interconnect Bypass Fraud (SIM Box Fraud):

This occurs when fraudsters use a device called a SIM box to redirect international calls through a different route that costs less. The call is still billed at the higher international rate, but the fraudster only pays a lower cost, keeping the difference. This not only cheats telecom operators out of revenue but often results in poorer call quality for unsuspecting customers.

Telecom Arbitrage Fraud:

Arbitrage fraud in telecommunication exploits the price discrepancies in international call rates. Fraudulent operators act as middlemen, rerouting calls through countries with cheaper rates while charging the original higher rates. They profit from the difference, and this type of fraud can be difficult to trace due to the complex nature of international telecom networks.

PBX Hacking:

Private Branch Exchange (PBX) systems, which many businesses use for their internal phone networks, can be vulnerable to hacking. Fraudsters exploit weak security to gain access and make long-distance or premium-rate calls at the business’s expense. The hacking often goes unnoticed until the business receives an unusually high phone bill.

Traffic Pumping (Access Stimulation):

Local phone companies in rural areas sometimes inflate the volume of incoming calls to their networks. This is to take advantage of the compensation fees they’re entitled to from larger telecom companies. It’s a legal loophole that allows them to claim more money under the guise of increased traffic.

Deposit Fraud:

Deposit fraud is essentially credit card fraud targeting telecom operators’ online stores. Fraudsters use stolen credit card details to purchase prepaid SIM cards or devices. When the actual cardholder disputes the charge, the telecom company must issue a refund, which adds to their losses.

Subscription Fraud – One of the common Telecommunication Frauds

Here, criminals use stolen identities to sign up for phone contracts to get high-end smartphones, which they then unlock and sell. They manage to bypass the Know Your Customer (KYC) checks with fake or stolen IDs, and by the time the fraud is discovered, the fraudster has disappeared with the device.

Account Takeover (ATO):

ATO fraud involves criminals gaining access to existing customer accounts by stealing or guessing login credentials. They can then make unauthorized changes or purchases. This type of fraud is costly to resolve and can severely damage a company’s reputation.

Smishing/SMS Phishing:

Scammers use SMS phishing to trick individuals into revealing personal information by sending deceptive text messages. They often use sophisticated techniques to avoid detection and may even operate illegal marketplaces to sell the data they collect.

SIM Jacking and SIM Swapping:

This fraud involves transferring a victim’s phone number to a new SIM card that the criminal controls. They can intercept text messages and calls, including those containing one-time passwords or two-factor authentication codes, to gain access to the victim’s other accounts and services.

Combating Telecommunication Fraud with Signzy

In the telecom industry, fraudsters often use complex schemes to conceal their identities, utilizing stolen personal information and employing a myriad of strategies to obscure their true intentions. Whether interacting with online shoppers or local carriers, the challenge remains the same.

Signzy offers a solution that allows telecom businesses to thoroughly understand their customers with minimal hassle. Our solutions are designed to provide deep insights into user identities, streamlining the verification process while maintaining user convenience.

About Signzy

Visit www.signzy.com for more information about us.
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Difference between DSC Token Signing and Aadhaar eSign

Posted on December 31, 2023 | by Signzian

Two prominent methods for digital authentication in India are Digital Signature Certificate (DSC) Token Signing and Aadhaar eSign. According to data from the Controller of Certifying Authorities (CCA) in India, the issuance of Digital Signature Certificates (DSCs) has been steadily increasing over the years. In the fiscal year 2020-21, over 24 million DSCs were issued, reflecting the growing demand. Aadhaar eSign on the other hand, has experienced remarkable growth since its inception. More than 125 million Aadhaar eSign transactions were reported in the year 2020-21, according to the Unique Identification Authority of India (UIDAI). This statistic highlights the widespread use of Aadhaar-based authentication for various purposes.

While both serve the common goal of validating electronic documents and transactions, they differ significantly in their technical underpinnings, functionalities, use cases, and regulatory frameworks. In this article, we will delve into the nuances of DSC Token Signing and Aadhaar eSign, highlighting their unique features and how they cater to diverse digital authentication needs.

Table of Contents

Technical and Functional Differences

DSC Token Signing

DSC Token Signing relies on a Digital Signature Certificate issued by a Certifying Authority (CA) in compliance with the Indian Information Technology Act, 2000. This method uses a cryptographic key pair – a private key held by the signatory and a public key stored in the DSC. When the signatory wishes to sign a document digitally, they use their private key to create a unique digital signature. The recipient can verify the signature’s authenticity using the corresponding public key.

Aadhaar eSign

Aadhaar eSign, on the other hand, leverages the Aadhaar ecosystem, India’s unique identity system, for digital authentication. This method allows individuals to electronically sign documents using their Aadhaar number and biometric authentication (fingerprint or iris scan). The process involves sending a One-Time Password (OTP) to the registered mobile number linked to the Aadhaar, which is then used to sign the document.

Top Unique Features

DSC Token Signing:

High Level of Security: DSC Token Signing offers a robust security framework, making it ideal for critical and sensitive transactions. The private key used for signing is securely stored in a hardware token or smart card, adding an extra layer of protection.

Legal Validity: Documents signed using DSC Token Signing are legally recognized in India, ensuring their enforceability in courts of law. This feature is crucial in the context of legal contracts and financial transactions.

Aadhaar eSign:

Ease of Use: Aadhaar eSign is incredibly user-friendly, requiring only a mobile number and biometric authentication. This simplicity promotes its adoption among a diverse population, including those with limited technical expertise.

Widespread Accessibility: With over a billion Aadhaar numbers issued, Aadhaar eSign has the potential to reach a massive user base, making it suitable for applications that require broad public participation.

Use Cases

DSC Token Signing:

Banking and Financial Transactions: Many banks and financial institutions employ DSC Token Signing for secure online transactions, loan approvals, and investment-related processes.

SBI, one of India’s largest banks, has implemented DSC Token Signing for various purposes, including secure online transactions and document verification. By incorporating DSC Token Signing into their digital banking platform, SBI has been able to provide customers with a high level of security and confidence in their online banking transactions. This implementation has contributed to a significant reduction in fraud and unauthorized access to customer accounts.

Aadhaar eSign:

eKYC and Onboarding: Telecom companies, banks, and fintech firms utilize Aadhaar eSign for customer onboarding and eKYC processes, streamlining customer registration and identity verification.

HDFC Bank, one of India’s largest private sector banks, has integrated Aadhaar eSign into its customer onboarding and account activation processes. This implementation allows HDFC Bank to onboard customers swiftly by verifying their identities using Aadhaar-based eKYC. Customers can digitally sign account opening forms, making the process faster and more convenient.

Conclusion

In the fast-evolving landscape of digital authentication in India, the implementation of DSC Token Signing and Aadhaar eSign by banks and financial institutions has made significant strides in enhancing security, efficiency, and accessibility in financial transactions. These methods cater to diverse needs, from secure document signing to streamlined customer onboarding.

As technology continues to advance, organizations must stay abreast of the latest authentication solutions to meet the ever-growing demands of their customers. One such solution worth exploring is Signzy’s Aadhaar E-Sign API.

Signzy’s Aadhaar E-Sign offers a robust and user-friendly platform for implementing Aadhaar-based electronic signatures. With Signzy’s technology, banks and financial institutions can simplify customer onboarding, streamline document verification, and ensure compliance with regulatory requirements. This API empowers organizations to exploit the full potential of Aadhaar eSign for a seamless and secure digital experience.

About Signzy

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Contact us directly!

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