Online security works both ways, with consumers eager for sites to provide the best security, and businesses and services requiring users to prove who they are to reduce the risk of fraud, money laundering, and other illegal activities.
While many of these systems provide a much-needed service that protects consumer information and ensures sites are not being used for illicit activities, they can occasionally pose a problem with some users struggling to access sites or accounts.
This has led to many exploring no-KYC alternatives, especially in sectors that deal directly with finances.
KYC explained
KYC or Know Your Customer is a process used by financial institutions, health care providers, real estate companies, gambling operators, and many more to verify the identity of customers.
The purpose of this is to mitigate the risk of criminal activities such as terrorist financing and money laundering. For many industries, these processes are mandatory and involve establishing the customer's identity, carrying out risk assessments, and cross-referencing databases.
The US is governed by the CIP (Customer Identification Program) under the USA Patriot Act. The main purpose of the CIP is to verify the identities of those carrying out financial transactions as part of AML (anti-money laundering) protocols.
How consumers can suffer from digital exclusion
Digital exclusion can affect those trying to access existing accounts or those trying to set new ones up. This has led to some seeking alternatives with consumers often searching for the best anonymous casinos without KYC.
Online casino expert Andrew O'Malley explains that it is not just digital exclusion that is causing consumers to explore alternatives. Quick and easy sign-up processes that don't require users to upload documents for approval are obvious benefits, but being able to gamble anonymously also brings unmatched security. Consumers who minimize the amount of data they share are less likely to have information stolen.
While these options provide a great alternative to online gamblers, other services might not be as flexible. Banking services in particular must follow procedures set out in the jurisdictions they work in, sometimes leaving people struggling to open accounts.
Identification Documents
Hundreds of millions of people around the world face digital exclusion, with one of the major causes being the requirement of identification documents. To ensure consumers upload qualifying identification documents, digital platforms implement rigid requirements.
One of the major issues with international websites having rigid ID requirements is that there is no standardized system for documents, and most sites are tailored towards North American and European users.
Those without documents that fit the requirements can find themselves excluded from online services, banking systems, and more.
Digital literacy
Online services are a major part of modern life, but it is unfair to expect all consumers to have the same levels of digital literacy. Studies show that almost 220 million consumers are at threat of digital exclusion due to a lack of online skills.
Access to resources and education is not guaranteed to all consumers around the world, and the failure of businesses to cater to this need leaves many stranded.
Biometric authentication is another recent development that is helping to provide more secure networks. However, not everyone has a device to facilitate these services, and many more have physical or medical conditions that can make them difficult.
Risk assessments
Risk assessments are a natural part of financial services, and many people who would qualify for accounts may find themselves rejected through no fault of their own.
One of the biggest causes of this kind of problem can be the location of the consumer. High-risk countries could be those with a history of fraud or financial crime, resulting in blanket exclusions that affect individuals.