2023-10-19 20:32:03
A Sumsuba full-cycle identity verification platform that protects the entire user journey, kicked off the FintechComply Roadshow through São Paulo last week – moving on to Colombia and Mexico. The objective is to present panels in which important players of the Fintech and Compliance industry discuss possible means, within the rules of the LGPD (General Data Protection Law), to reinforce the security of user registrations and prevent the escalation of fraud.
Led by Guilherme Terrengui, head of business development at Sumsub for Latin America and Iberia, the panel included Marcelo Munhoz (Paybrokers), Luiza Vilas Boas (SmartFastPay) and Alexandre Pinto (Pismo). At the center of the debate, the escalation of fraud attempts, which have become more sophisticated in line with technological advances. According to the “fraudometer”, a tool created by Serasa Experian to count fraud attempts in real time, only from January to September this year, Brazil recorded more than seven million fraud attempts.
Alexandre Pinto assesses that Brazil is experiencing a new reality after the implementation of Pix (Brazilian instant payment). “Pix did not replace TED (electronic transfer available). He created a new market, being responsible for the financial inclusion of millions of Brazilians”, says the executive. Nowadays, instant payment is used by more than 700 financial institutions and by 80% of Brazilian adults, promoting unprecedented financial inclusion in Brazil. “There has been a huge change in behavior. If, before, between four and five million TEDs were made daily, with pix we have already reached 163 million payments in a single day”.
For Luiza Vilas Boas, the new financial reality in Brazil and the world poses some challenges, as the speed of operations ends up making it easier to hide money. “Digital accounts can be used in the process of hiding fraudulent transactions, especially because the money is often already within the financial system, unlike atypical deposits or cash withdrawals. This takes us to a new level of security that needs to be climbed”, says the lawyer.
“KYC (Know-Your-Customer) know-your-client) no longer ends with customer onboarding”, says Guilherme Terrengui. “It is necessary not only to guarantee that the user is who he says he is – which happens when verifying identity documents in various lists of banks and government institutions, among others. Increasingly, it is necessary to have continuous visibility of the customer, monitoring their entire online journey, and rely on machine learning to detect any variation in behavior that indicates the possibility of a crime.”
Terrengui states that, in addition to KYC, it is essential to have a good KYB (know-your-business). know-your-business), with monitoring of transactions and mainly with fraud prevention mechanisms. “With the full-cycle platform, it doesn’t matter how many users will come at the same time. Everyone will be verified in the shortest possible time”, says the business head.
One study undertaken anonymously by Forrester with four Sumsub enterprise customers pointed to a 240% ROI (return on investment) in less than six months and a profit of US$1.1 million due to additional customers onboarded. All this in-depth knowledge in São Paulo now goes to other countries From Latin America.
Sources: Guilherme Terrengui (Sumsub), Marcelo Munhoz (Paybrokers), Luiza Vilas Boas (SmartFastPay) and Alexandre Pinto (Pismo).
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