Your KYC information, or know your customer data, can be extremely valuable to fraudsters if it falls into the wrong hands. That’s why it’s so important to take steps to protect this information from being compromised. With these seven ways to keep your KYC safe from fraudsters, you can rest easy knowing that your business data is being protected and that you can keep up with the rapidly-changing regulatory environment of today’s financial world.
Types of scams
There are many different types of scams that can affect your business. Many of them are phishing attacks, where a malicious party tries to trick you into giving up your sensitive information by pretending to be someone else, either through an email or over social media. It is important that you educate yourself on ways to protect yourself against these attacks and take precautions when interacting with others online. Here are a few common scenarios
Prevention measures
First, it’s crucial to be vigilant about protecting your personally identifiable information. When signing up for new banking and financial services, first use search engines such as Google or Bing to look for any news regarding phishing scams; if you see reports of a scam that matches what you’re experiencing, stop and consider where your data may have been compromised. If you suspect that a scammer has accessed your bank account (or another kind of account), contact your bank immediately. They’ll be able to tell you whether there has been fraudulent activity on your account, and they’ll help you secure any information that’s still at risk.
1) Use strong passwords
Make sure that you never use easy-to-guess passwords, such as your pet’s name or birthdate. Make it tough for hackers by making sure that all of your passwords include numbers and letters—not just letters. The longer, stronger and more complicated your password is, the better protected you are. Use strong passwords everywhere — not just on cryptocurrency exchanges and wallets. Never use a password twice across different sites or services; otherwise, if one site is compromised, your entire identity could be stolen. If you’re looking for guidance on creating strong passwords , check out Password Meter .
Never share private information such as your Social Security number, birth date, address or banking information. Many scammers use fake web pages that look like company websites and even ask for your bank account details. Always be sure you’re on a legitimate site when logging in or providing personal details. You can check by looking for a lock icon in your browser’s URL bar, which indicates encryption between you and a site is taking place. If it doesn’t appear, there could be a scam occurring or worse – data can be shared with others without any knowledge on your part.
3) Update your profile regularly
Phishing scams occur when a company requests sensitive information under false pretenses. It can seem legitimate at first glance, but a closer look reveals that it’s not actually an official request and that you’re likely handing over your information to a scammer. A classic example of a phishing scam includes an email that claims there’s something wrong with your account and asks you to log in—but, if you do, you’ll actually be giving away your login credentials. The best way to avoid being scammed is to review any correspondence from your bank or financial institution before responding. Don’t just click on links; hover over them instead and make sure they link back to your bank’s domain name. If you still have questions, ask someone for help!
4) Always use two-factor authentication
While it may seem inconvenient, you should use two-factor authentication whenever possible. It’s simply a more secure method of logging in and protects your personal information by requiring you enter an additional code. In most cases, 2FA is an option that can be added on without having to change any of your other login credentials (such as your username or password). This means that if a hacker steals your password or account information, they still need another piece of data (the 2FA code) before they can access your account. That makes it much harder for hackers to get access and steal money or sensitive data.
5) Watch out for phishing scams
Phishing is perhaps one of the easiest ways for criminals to hack into a company’s systems. The process involves fraudsters sending out emails or messages with links or attachments that direct users to a false login page, which often collects personal information like user names and passwords. Never click on links sent in unsolicited messages, and make sure all employees are well-versed in how phishing works and what information can be collected if they fall for it. If possible, use two-factor authentication (2FA) for login pages. While 2FA isn’t foolproof against hacking, it will make it harder for intruders to access company data because they’ll need an additional piece of information — usually something only a user has access to — in order to log in.
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