In the modern digital world, the development of co-working platforms has transformed businesses which has also increased security risks such as identity theft or unaccredited entities gaining access to sensitive data. This needs to be clarified for co-working service providers because it discourages clients from using the platforms. Applying KYC verification solutions can help operators fight identity fraud and ensure compliance with KYC & AML regulations. This advanced approach not only provides a competitive advantage but also strengthens relationships with customers.
The following article looks closely at the significance of KYC verification systems and how co-working service providers can use cutting-edge technology to achieve business milestones.
KYC Verification Solutions: A Quick Overview
KYC authentication is about validating a client’s identity and background information by verifying personal credentials. All businesses must validate the identities of customers before extending company services. KYC verification systems present an essential set of standards for modern-day enterprises to fight fraud and avoid hefty fines from global regulatory bodies. This goes along with AML regulatory measures to discourage money laundering & terrorism financing cases.
Fraud Cases in the Shared Working Spaces: Gaining Insight
The introduction of shared working spaces as independent business parties, start-ups, and SMEs utilise the opportunity to reduce overall expenditures. A major concern that arises here is security. Several co-working platforms have an open sitting plan that has the flexibility of coming in and out of the space, compromising workers’ privacy.
According to customers’ views, co-working spaces can become highly secure with electronic access control and biometric IDV systems. Even though the environment in co-working spaces is relaxed, there is a limit to how many employees can work simultaneously.
Start-ups & SMEs that benefit from co-working spaces report concerns regarding data privacy breaches and property theft. One of the goals behind the introduction of shared working spaces is to encourage collaboration and provide networking opportunities to users. Such amenities can easily backfire if competitors start working at the same place.
Discouraging Data Breaches & Mitigating Cybersecurity Risk
Cybersecurity is a major concern for businesses that use co-working spaces. Corporations that have to deal with large volumes of data regularly and collaborate with other businesses face the risk of cybersecurity.
In a traditional working environment, companies have the advantage that employees are familiar with each other. As there is flexibility in coworking spaces to move in and out, there is a high risk of identity theft and other crimes. Hence, the application of KYC verification measures is inevitable.
The Case of Biometric Data Theft
In 2019, investigators found that cybercriminals hacked a public database that had fingerprints and biometric data of more than one million people. A ZDNet report shared that a privacy breach of this kind is alarming. Biometric data is impossible to alter, which is unlike a credit card number. However, if cybercriminals gain access to it, businesses should be prepared for the worst.
Such types of privacy breaches have negative consequences for the victims. For instance, the rise in deep fake technology has created a massive pool of fake videos, which leads to identity theft. With advancements in co-working spaces, operators and engineers must enhance fraud prevention measures and use the latest KYC verification services to comply with international standards.
Co-Working Space Statistics
Shared working spaces are a type of business entity that nurtures collaboration among employees. It is a new way of working together where workers from various corporations can sit together and accomplish goals. However, the advanced approach raises identity theft & data privacy breaches concerns. Previously, co-working spaces were coffee shops & restaurants.
The following points highlight some significant statistics about co-working spaces:
- By 2024, the number of shared working spaces will exceed 40,000 places
- Coworking spaces will comprise 30% of the market by 2030
Using Customer Due Diligence (CDD) to Mitigate Risk
Customer Due Diligence in Banking (CDD) is part of KYC verification systems. It is a risk assessment approach that can facilitate businesses to deal with loopholes in the security systems to fight fraud. Similarly, implementing CDD can enable co-working spaces to discourage identity theft by creating a risk profile and generating a score.
CDD regime calculates risk scores of all users using the platform and cross-checks data against global watchlists. This ensures the identification of high-risk entities and facilitates security personnel to deal with the parties.
The implementation of KYC verification solutions can cater to the needs of co-working spaces. Identity authentication of all onboarding customers attracts genuine clients from around the world. The AI-driven services generate high-quality results immediately. Moreover, shared space platform operators can collaborate with a competent vendor to implement GDPR & PCI DSS-compliant solutions. This innovative approach enhances unbeatable data privacy and strengthens relationships with clients. In other words, co-working spaces can boost revenue and secure a strategic advantage in the tough market atmosphere.