Jargon Busters

Jargon Buster

The financial services and regulated space is awash with a wide range of anagrams, buzzwords and jargon. In this page, we will explain exactly what the most important and most frequently used terms across identity verification mean:

A

Account Takeover

Account takeover is a form of identity theft and fraud, where a malicious third party successfully gains access to a user’s account credentials.

Acquisition

The process used to bring consumers down the marketing funnel from brand awareness to purchase decision.

Adverse Media

Content focused on persons and entities involved or alleged to have been involved in criminal activity.

Age Verification

Verifying a customer’s age is over 18.

Anti-money Laundering (AML)

An anagram for Anti-Money Laundering. The action taken to mitigate the risk of money laundering.

AMLD

An anagram for Anti-Money Laundering Directives, the latest is 6AMLD.

API

An anagram for Application Programming Interface which allows integration with an existing website or app design.

Application Flow

The process by which customers make contact with you.

Artificial Intelligence

The theory and development of computer systems able to perform tasks normally requiring human intelligence.

Authentication

The process or action of verifying the identity of a user or process.

Automated/Instant Onboarding

The process of automated identity verification by computers to onboard customers instantly.

B

Bayesian Belief Networks

A probabilistic graphical model that represents a set of variables and their conditional dependencies via a directed acyclic graph.

Beneficial Owner

The person who owns or controls an account through which a transaction is being conducted.

Beneficiary

A natural person or other legal entity who receives money or other benefits from a benefactor.

Big Data

Large volumes of both structured and unstructured data that are too vast for traditional data processing software to manage.

Biographic Data

The most basic form of personal information, which includes a person’s name, address, gender, marital status, and date of birth.

Biometrics

Body measurements and calculations which can be used to digitally identify a person.

Bitcoin

The first blockchain-based cryptocurrency, which remains the most popular and most valuable.

Blockchain

A system of recording information in a way that makes it difficult or impossible to change, hack or cheat the system. It is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.

C

CCPA

An anagram for the California Consumer Privacy Act, a state statute intended to enhance privacy rights and consumer protection for residents of California, United States.

CDD & EDD Measures

Anagrams for Customer Due Diligence & Enhanced Due Diligence – taking steps to identify your customers and checking they are who they say they are.

CFT

An anagram for Counter-Terrorist Financing.

Chargebacks

A charge that is returned to a payment card after a customer disputes an item on their account statement or transactions report.

Chip & eID Authentication

An anagram for Electronic Identification. When software attempts to read the eID, users are sometimes asked for confirmation for an action and potentially their PIN.

CIP

An anagram for Consumer Identity Program.

Compliance

Cooperation with regulatory laws.

Connection Rates

The number of connections obtained during the user journey.

CRA

An anagram for Credit Reference Agency.

Cryptocurrency

A digital or virtual currency which is used as a medium of exchange.

D

Dark Web

The part of the World Wide Web that is only accessible by means of special software, allowing users and website operators to remain anonymous or untraceable.

Data Science

A multidisciplinary field that uses scientific methods, processes, algorithms and systems to extract knowledge and insights from structured and unstructured data.

Digital Money

Any means of payment that exists purely in electronic form. Digital money is not tangible like a paper bill or a coin.

Documents

Government-issued identity documents.

Drop Offs

When a customer leaves the application or sign-up process once the journey has been started.

E

eKYC

An anagram for Electronic Know Your Customer.

F

False Positives/Negatives

Falsely approving or disapproving customers while onboarding.

FATF

An anagram for the Financial Action Task Force, an intergovernmental organisation which combats money laundering.

Fintech

Technological tools, platforms or companies that offer digital financial solutions.

Fraud Prevention

Preventing the risk of fraud and stopping criminals.

G

GDPR

An anagram for General Data Protection Regulation, a regulation in EU law on data protection and privacy in the European Union and the European Economic Area.

I

Identity

The fact of being who or what a person or thing is.

Impersonation Fraud

When an individual steals another person’s identity, pretending to be them.

J

JMLSG

The Joint Money Laundering Steering Group is made up of the leading UK Trade Associations in the Financial Services Industry.

K

KYC

An anagram for Know Your Customer, a mandatory check when identifying and verifying the identity of a customer.

L

LCCP

An anagram for the Licence Conditions and Codes of Practice which set out the requirements gaming companies must meet in order to hold an operating licence.

Liveness Check

A check to verify that the features being presented to the biometric application are those of a living subject, and not a copy or imitation of those features.

M

Machine Learning

The scientific study of algorithms and statistical models that computer systems use to effectively perform a specific task without using explicit instructions, relying on patterns and inference instead.

Manual Checks

The process of a human checking documents for verification as opposed to automated checks done by computers.

Merchant Verification

The process of verifying the identities of merchants to identify & eliminate potential sources of fraud.

MRZ Crosscheck

An anagram for Machine-Readable Zone Crosscheck. MRZ is typically found on official travel or identity documents.

N

Natural Language Processing

The application of computational techniques to the analysis and synthesis of natural language and speech.

O

OCR

An anagram for Optical Character Recognition which extracts text from scanned images.

Onboarding

The process of customers signing-up to use your services.

Open Banking

A banking practice that provides third-party financial service providers access to consumer data from financial institutions through the use of APIs.

P

Pass Rates

The number of customers who pass your verification processes against the total number who try to sign-up.

PEPs & Sanctions

PEPs and Sanctions checks allow you to see if a company has been sanctioned or if a politically exposed person is connected to the company.

PII

An anagram for Personal Identifiable Information, which is any representation of information that permits the identity of an individual.

PSD2

An anagram for Payment Services Directive Two, the second installment of the European Commission’s Payment Services Directive.

R

Risk Based Approach

International standards require that a risk-based approach is applied to customer due diligence; companies should assess the money laundering/terrorist financing risk each client poses and adjust their due diligence scrutiny accordingly.

S

SCA

An anagram for Strong Customer Authentication, a requirement of the EU Revised Directive on Payment Services (PSD2).

Social Connect

A consent-based approach to enable end-users to share specified data points from an online account.

Social Login

Utilises social media or another online account to login without creating a new set of credentials.

Sodium

Hello Soda’s flagship platform which combines our suite of KYC & AML products delivered via a single integration.

T

Thresholds 

Once a customer hits a certain threshold determined by that business, they will be subject to additional identity verification. For example, if a customer deposits or withdraws a certain level of spend with a gambling operator, they will require extra checks.

U

UNAC

An anagram for the United Nations Association in Canada.

Uplift

The act of uplifting or increasing something.

User Journey

The journey on which the user takes to make use of your services.

V

Verification

The process of establishing the truth, accuracy, or validity of something.

W

Waterfall

Relating to or denoting a method of project management that is characterised by sequential stages and a fixed plan of work.

#

2+2

A customer must provide two forms of documentation that state either their Name & Date of Birth or their Name and address in order to be verified.

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