With more and more people making financial transactions online, fraudulent activities, like terrorist financing, corruption, and money laundering, have increased significantly over the years. Because of this, governments have mandated financial institutions to comply with regulatory requirements when dealing with new customers and counterparties.
For enhanced online security and foolproof processes, many organisations, including banks, digital payment service providers, and cryptocurrency exchanges, have turned to use KYC (Know Your Customer) verification, a technology that authenticates the identity of customers so that identity theft and other illegal funds are prevented. However, these financial institutions are not the only ones that have implemented this new method into their systems. PetsForHomes, an animal classified advertising website based in Sydney, Australia, has recently launched its KYC verification tool for pet breeders.
What is KYC and how does it work?
KYC is a digital procedure that accurately verifies the identity of customers and ensures that they are who they say they are. It enables companies to determine their customers’ risk profiles and track each one’s activity so that illegal online transactions are prevented.
Digital KYC verification is executed through different technologies, including biometrics, artificial intelligence, and hologram. It can comprise a government-issued identification document, proof of address, and face check.
If you have recently transacted with a financial institution, chances are you have gone through a KYC verification process. This is because this procedure has been a requirement in organisations for decades, albeit done manually and examined by staff. Today’s KYC technology is done digitally through biometrics which is faster and more efficient. As a customer, you can be verified in just minutes, if not seconds, giving you full access to all the services offered by a business.
In contrast, you must collect and verify an individual’s information before providing services to them, if you are the company or financial institution. Once your customer’s identity has been authenticated, you will be able to track their financial transactions and check for any unusual or suspicious activity.
In Australia, the government agency responsible for detecting and stopping fraud in the financial system is the Australian Transaction Reports and Analysis Centre (AUSTRAC). All businesses must apply and document the customer identification procedures for all customers. These include collecting and verifying information from the latter before providing services to them.
PetsForHomes enables safer transactions with KYC verification
Many online pet classifieds let individuals open an account without requiring identity verification, so the number of potential buyers duped into purchasing animals from scammers continues to increase day after day. What fake breeders often do is set up a phoney account using a legitimate breeder’s information, ask buyers for a deposit, and then disappear. Legitimate breeders are then left to blame for the fraudulent transactions, while buyers are left robbed of their entire deposit amounts.
To ensure that pet buyers are protected and that the information of legitimate and registered breeders and adoption agencies or pounds is not stolen, PetsForHomes recently implemented the KYC verification technology in its system. The pet classified advertising website’s goal is
to use its biometric KYC verification tool to make animal adoption safe for its members and users.
For only $29, registered pet breeders will be able to obtain a unique Breeder Verification Badge that will be displayed on their adverts after signing up on the website’s marketplace. This badge will serve as proof that the breeder’s identification has been verified.
PetsforHomes’ PR Manager, Kate Teng, has said that they put out breeder reviews early on when they launched PetsforHomes to give accountability to breeders and sellers. Adding in KYC verification adds an extra layer of protection for buyers dealing with breeders and sellers.
If you are looking for kittens or puppies for sale in New South Wales (NSW) or anywhere else in Australia, PetsForHomes connects potential pet buyers with responsible breeders online. This platform has implemented the new KYC verification tool to ensure that you find your desired furry friend and transact with the right individuals.