Realsearch ID Verification tools cut KYC costs

SAN JUAN,PR March 8, 2014 -- Knowing your customer helps you market your product, now it protects you from fraud, and is no longer an option. Know your customer (KYC) is the process that financial institutions and other regulated companies must implement to identify their clients and obtain specific background information at sign up, and for as long as there is a business relationship with that customer. The KYC policies are designed and applied to adapt to a Customer Identification Program(CIP) which is mandated under the Bank Secrecy Act, Foreign Assets Control (OFAC), and USA PATRIOT ACT of 2002. With the rise of all types of online fraud, knowing your customer policies are a requirement for types of financial institutions. KYC approach is the cornerstone of modern regulations designed to combat the money-laundering phenomenon and globally to prevent identity theft fraud.

Fraud is on the rise and businesses online and otherwise are losing. It is not just banks and financial institutions that are suffering. Identity theft was the top complaint to the Federal Trade Commission in 2010, with more than 250,000 complaints. Nearly two in 10 complaints overall were ID theft-related. "More consumers are being victimized by fraudulent use of their credit and debit cards to make online purchases, and such crimes will increase through 2010 before tapering off," according to research firm Javelin Strategy & Research. In 2009, 2.3 million consumers were the victims of online purchase fraud and that number will increase to 2.7 million in 2010, then trend downward to 2.4 million in 2013, predicts Javelin analyst Rachel Kim.

The predicted downward trend is forecast because companies are putting protection and security plans like KYC in place. Some voluntarily and others are required to or they will face severe penalties. The Red Flags Rule is another anti-fraud regulation, requiring "creditors" with covered accounts to implement programs to identify, detect, and respond to the warning signs, or "red flags," that could indicate identity theft. Federal fines for non-compliance are up to $3,500 per occurrence.

Companies outside the financial industry are not exempt as they may have thought. The Fair and Accurate Credit Transactions Act of 2003 (FACT Act) and Fair Credit Reporting act (FCRA) and Red Flag Rules are relevant to every increasing number of businesses. According to a Business Alert issued by the Federal Trade Commission in June 2008, the Red Flags Rules apply to a very broad list of businesses, not just financial and creditors. The regulations apply to all businesses that have "covered accounts". A "covered account" includes any account for which there is a foreseeable risk of identity theft. For example, credit cards, monthly billed accounts like utility bills or cell phone bills, social security numbers, driver's license numbers, medical insurance accounts, and many others. This significantly expands the definition to include all companies, regardless of size, that maintain, or otherwise possess, consumer information for a business purpose. Because of the broad definitions in these regulations, few businesses will be able to escape these requirements.

Fraud itself is causing companies to lose millions, and on top of that, the stricter customer due diligence laws have forced business to increase compliance efforts leading to rising business expenses at time when the industry can least afford it. Staff compensation costs for compliance can be daunting. Thanks to technology the headache caused by these regulations can be eased. and its companion's due diligence Businesses Solutions cut KYC costs help fight fraud, and protect business reputations. 

Compliance personal and investigators can use and solutions to be confident they are achieving USA PATRIOT Act compliance, Office of Foreign Assets Control (OFAC), Bank Secrecy Act (BSA) and compliance with all related regulations. and identity verification and KYC solutions allow you to implement anything from simple OFAC watch list inspection to advanced identity checks and superior due diligence searches for screening individuals or businesses.

Setting the standard as the Source for Data are and web portals of Liberty Data, Inc. This nation-leading ID Verification and Compliance Data Technology firm offers more than 13 Terabytes of Consumer and Business proprietary data searchable online, in bulk or via XML Feeds. For a test drive and demonstration call them at 800.299.8280 or email is the Source for industry-leading tools to help any business cut compliance costs while meeting its legal requirements, leading the industry in the ongoing fight against fraud. 


Juliann Smith (


Robin Lahiri, COO