What is KYC Identity Verification, How is it Done, and What is its Purpose?

Know Your Customer (KYC)

KYC stands for “Know Your Customer,” and it refers to the process of verifying a customer’s identity to ensure that it matches the necessary information. In online environments where identity theft risks are high, identity verification becomes crucial.

Identity verification ensures that there is a real person behind a transaction and that the person is who they claim to be. This helps prevent unauthorized transactions conducted under someone else’s name for fraudulent purposes.

In face-to-face identity verification, the process starts by physically visiting a service provider such as a bank branch, dealership, or government office. A copy of the identity document is provided, application forms are filled out, and the identity verification process is carried out. This method is both time-consuming and costly.

Digital Identity Verification in the KYC Process

In digital identity verification, the process can be carried out entirely online through digital channels, such as a mobile device, without needing to visit any institution. A camera-equipped device with internet access is sufficient for this process.

Photos of the front and back of the identity card are taken using the camera of a mobile device, such as a smartphone or tablet. If the mobile device supports NFC technology, the information stored in the chip on the identity card is read. Identity photos, data from the chip, and video calls—one of the secure methods of identity verification—are used to verify the identity. Identity verification can also be done via self-service through a mobile app without a video call.

During the identity verification process, artificial intelligence-supported liveness detection and biometric analyses are performed to confirm that the person is a real individual. The captured identity photos, along with analysis and verification evidence, are stored in the relevant institution’s system, and the process is completed.

Identity verification is a fundamental requirement in many processes and procedures, such as registration, account opening, and transaction processing.

How Does the Online Identity Verification Process Work?

1. The user who wants to register visits the mobile app of the company, organization, or institution.
2. The user accepts the use of the camera and microphone for identity verification.
3. The user takes photos of the front and back of their identity document according to the type of document.
4. If connected to an NFC-enabled device, the identity card’s chip is read.
5. A check is performed to ensure that the chip is not duplicated (authenticity check).
6. The user takes a photo of their face using the mobile device’s camera.
7. Through the mobile app, the user either:
8. Connects to a video call center and verifies their identity through a video call with a team of customer representatives, or
9. Proceeds with the process via self-service if there is no video call.
10. A biometric face similarity check is conducted.
11. Liveness detection is performed.
12. All data related to the verified identity is stored in digital format.

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