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:
Account takeover is a form of identity theft and fraud, where a malicious third party successfully gains access to a user’s account credentials.
The process used to bring consumers down the marketing funnel from brand awareness to purchase decision.
Content focused on persons and entities involved or alleged to have been involved in criminal activity.
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.
An anagram for Anti-Money Laundering Directives, the latest is 6AMLD.
An anagram for Application Programming Interface which allows integration with an existing website or app design.
The process by which customers make contact with you.
The theory and development of computer systems able to perform tasks normally requiring human intelligence.
The process or action of verifying the identity of a user or process.
The process of automated identity verification by computers to onboard customers instantly.
Bayesian Belief Networks
A probabilistic graphical model that represents a set of variables and their conditional dependencies via a directed acyclic graph.
The person who owns or controls an account through which a transaction is being conducted.
A natural person or other legal entity who receives money or other benefits from a benefactor.
Large volumes of both structured and unstructured data that are too vast for traditional data processing software to manage.
The most basic form of personal information, which includes a person’s name, address, gender, marital status, and date of birth.
Body measurements and calculations which can be used to digitally identify a person.
The first blockchain-based cryptocurrency, which remains the most popular and most valuable.
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.
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.
An anagram for Counter-Terrorist Financing.
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.
An anagram for Consumer Identity Program.
Cooperation with regulatory laws.
The number of connections obtained during the user journey.
An anagram for Credit Reference Agency.
A digital or virtual currency which is used as a medium of exchange.
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.
A multidisciplinary field that uses scientific methods, processes, algorithms and systems to extract knowledge and insights from structured and unstructured data.
Any means of payment that exists purely in electronic form. Digital money is not tangible like a paper bill or a coin.
Government-issued identity documents.
When a customer leaves the application or sign-up process once the journey has been started.
An anagram for Electronic Know Your Customer.
Falsely approving or disapproving customers while onboarding.
An anagram for the Financial Action Task Force, an intergovernmental organisation which combats money laundering.
Technological tools, platforms or companies that offer digital financial solutions.
Preventing the risk of fraud and stopping criminals.
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.
The fact of being who or what a person or thing is.
When an individual steals another person’s identity, pretending to be them.
The Joint Money Laundering Steering Group is made up of the leading UK Trade Associations in the Financial Services Industry.
An anagram for Know Your Customer, a mandatory check when identifying and verifying the identity of a customer.
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.
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.
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.
The process of a human checking documents for verification as opposed to automated checks done by computers.
The process of verifying the identities of merchants to identify & eliminate potential sources of fraud.
An anagram for Machine-Readable Zone Crosscheck. MRZ is typically found on official travel or identity documents.
Natural Language Processing
The application of computational techniques to the analysis and synthesis of natural language and speech.
An anagram for Optical Character Recognition which extracts text from scanned images.
The process of customers signing-up to use your services.
A banking practice that provides third-party financial service providers access to consumer data from financial institutions through the use of APIs.
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.
An anagram for Personal Identifiable Information, which is any representation of information that permits the identity of an individual.
An anagram for Payment Services Directive Two, the second installment of the European Commission’s Payment Services Directive.
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.
An anagram for Strong Customer Authentication, a requirement of the EU Revised Directive on Payment Services (PSD2).
A consent-based approach to enable end-users to share specified data points from an online account.
Utilises social media or another online account to login without creating a new set of credentials.
Hello Soda’s flagship platform which combines our suite of KYC & AML products delivered via a single integration.
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.
An anagram for the United Nations Association in Canada.
The act of uplifting or increasing something.
The journey on which the user takes to make use of your services.
The process of establishing the truth, accuracy, or validity of something.
Relating to or denoting a method of project management that is characterised by sequential stages and a fixed plan of work.
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.