This article is part of Kyckr’s new Future of Financial Crime Series which will feature interviews with leading industry professionals and thought leaders to learn more about the trends that will shape the future of financial crime.
The following is an interview we recently had with Oleg Kurchenko, Founder and CEO of Binaryx.
What is the state of financial crime today?
COVID-19 and wide-spreading digitisation made their impact on business and at the same time, opened new ways for financial criminals as well. The shift to working remotely and national lockdowns have led to even faster adoption of e-commerce and digital payments, which caused cash displacement in many jurisdictions, disrupting criminal payment corridors. The top three things COVID-19 brought to the fintech space were growth of fraud cases, increased risk appetite, and enhanced pressure on operational processes.
How has financial crime evolved over the past 5 years?
The problem is that the Internet, at the time of its invention, wasn't supposed to be secure and solve such complex security issues that make financial fraud online possible. Everywhere used TCP/IP and SSL/TLS protocols are weak and have a lot of security imperfections hackers are used to exploit. Massive data breaches and hacks have always been crucial issues since the Internet is available. Currently, crypto enthusiasts don't even imagine that it's possible to completely secure data online.
What's the future of financial crime?
We will definitely see more attacks and crimes in this sector in the upcoming years. At the same time, management of numerous companies around the world is involved, as never before, to prioritise implementing cybersecurity solutions because data is the new oil in our current digital world.
According to GDPR, HIPAA, and other privacy policies, data encryption is going to be an integral part of any corporate security system in the future. The biggest trends in corporate cybersecurity, which is going to be developing exponentially, is end-to-end information protection and end user protection.
Financial institutions will invest in advanced technologies for identity verification. For instance, the video KYC verification solution might surpass other verification methods in the future, as video creation, sending, and parsing is currently much more complicated than photos and screenshots. Also, video KYC brings more confidence in a person's real identity.