How Verify 365 Prevents ID Fraud and Money Laundering in Real-Time
16 October 2022 – London
By Rudi Kesic
By the end of 2022, Lawtech 365 estimate that that U.K. law firms spending to combat money laundering and identity fraud will reach £600 million. Identity theft and money laundering fraud occurs when a fraudster uses either stolen personal ID documents or synthetic ID images to undertake a financial transaction through a regulated law practice, for example trying to pass as a legitimate seller of a property or trying to acquire a property using dirty money.
Digital Client Onboarding v. Identity Fraud Prevention
Instances of money laundering and identity fraud are highly damaging for solicitors firms and are partially being fuelled by billions of ID data records that have been stolen over the past five years.
To prevent identity fraud and money laundering, solicitors firms are required to try to identify fraudulent activity or fraudulent identity documents in real-time at the beginning of the new matter opening process, known as client onboarding or client intake. At the same time, most law firms, especially in London, Sydney and Toronto, are under huge pressure to try to “digitise” and “automate” their client onboarding and use onboarding technology such as Verify 365 so their clients can work with them entirely online or via a smartphone device, using an app.
Recent research from Lawtech 365 shows the extent of these pressures, especially among younger demographics – with over 90 per cent of people under 50 stating that they would prefer to work with a lawyer online and verify their documents remotely using technology.
So, the real question is not if the technology is needed, but rather how can law firms achieve a successful digital-first fraud prevention strategy using technology?
Digital Client Journey Experience using Technology
You will agree that solicitors firms should focus on using technology and ensuring the best possible client journey experience.
Lawyers need to put in place a matter opening process that includes real-time risk assessment and identity verification combined with AML compliant procedures, while delivering a digitally seamless client experience. The importance of improving the client experience cannot be understated.
With the right solution, such as Verify 365, law firms can have the best of both worlds.
Driving Down Identity Theft and Money Laundering Fraud
Law firms need to drive down instances of ID and money laundering fraud. Digital identity verification combined with instant address checks and open banking source of funds checks can enable solicitors to mitigate fraud while providing a more positive client journey experience.
With Verify 365’s automated identity document NFC-chip verification and facial biometrics comparison checks, law firms can validate client’s identity in real-time, whether the transaction takes place online, in the office or via a mobile device.
Digital identity verification platforms such as Verify 365 not only help conveyancers and real estate lawyers prevent fraud – they can also help solicitors fulfil Know Your Customer (KYC) and anti-money laundering (AML) compliance requirements, such as those imposed by HM Land Registry and the Solicitors Regulation Authority in England and Wales.
Secure agreement automation using digital identity verifications, e-signatures and digital audit trails also allows solicitors to create legally binding contracts. With a full digital audit trail combined with biometric ID verification, lawyers can prove to the regulators that they followed a consistent and compliant process when verifying and onboarding a new client.
What are they main benefits of using Verify 365 for law firms?
The key benefits of Verify 365 digital onboarding platform to clients include:
1. AML Compliance and Identity Verification provided within one integrated solution;
2. Firm can onboard clients from anywhere, no need for clients to visit an office;
3. Full compliance with HM Land Registry’s Safe Harbour Digital ID Standard;
4. Full compliance with the Solicitors Regulation Authority Enhanced Due Diligence;
5. Verification fee recharged to the client – the system is effectively free for the firm;
6. Access to verified and analysed source of funds (bank data) for every new client;
7. Clients can easily make a payment on account during onboarding;
8. Clients can e-sign documents during onboarding, including QES;
9. Ability to onboard clients from over 195 countries and verify over 10,000 ID documents.
Verify 365 Subscription Plans include a three-tier model:
1. Express (£99/$99 per month) for law firms undertaking less than 10 client verifications per month;
2. Premium (£245/$245 per month) for law firms undertaking more than 10 verifications peer month; and
3. Enterprise (£1,950/$1,950 per month) for firms onboarding more than 100 clients per month;
These pricing options allow solicitors to select the most effective option, and provide the opportunity to grow. Features vary by tier, but HM Land Registry and SRA compliance is included at all levels.
Premium plan subscribers receive “Risk Labelling” with their subscription, as well as e-Payments and e-Signatures, which are available as an add-on for the Express Plus members.
If your law firm is looking for a digital client onboarding solution specifically developed for SRA regulated solicitors firms in England and Wales, please visit www.verify365.app.
16 October 2022 – London
Rudi Kesic – CEO at Lawtech 365 Group | Verify 365