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The problem with KYC is the same as the problem with many laws: it’s an inconvenience for the good guys, and only stops the dumbest of the bad guys. There are

The problem with KYC is the same as the problem with many laws: it’s an inconvenience for the good guys, and only stops the dumbest of the bad guys. There are lots of ways around KYC laws for the criminally inclined. The most straight forward would be simple identity fraud with stolen documents. Ironically, the more accustomed people become to uploading photos of their passport online, the easier it becomes for criminals to phish for the exact information they need for identity fraud. With more banks closing branches and allowing opening of accounts online, and an increasing number of online “KYC compliance solutions” with dubious security, this problem will only get worse IMO.

stcredzero 8y ago
The problem with KYC is the same as the problem with many laws: it’s an inconvenience for the good guys, and only stops the dumbest of the bad guys. It's not just an inconvenience for the good guys. For community banks, the penalties for messing up are a much bigger deal than for an HSBC or a Bank of America. The problem isn't the stupidest of the bad guys. The problem are the still-stupid bad guys who have a modicum of ability. For smaller banks, who have to pick from borrowers who can't get a loan from the big banks, there are also marginal good guys who can get themselves into trouble, financial and/or legal. With more banks closing branches and allowing opening of accounts online, and an increasing number of online “KYC compliance solutions” with dubious security, this problem will only get worse IMO. Agreed. It's very difficult to solve and will be very important. Therefore, this is a possible opportunity?
- thecosas 8y ago
  Here's a company that's trying to approach it with blockchain: https://tradle.io/ https://tradle.io/
eftychis 8y ago
Yes. Please do not ask or share photocopies of your documents over insecure channels. And even then you trust the person on the other line not to screw up with your data... Especially in the U.S. where a person just needs to know your SSN apparently...
devy 8y ago
Along the lines of getting identity stolen, hotel front desks are one spot. (for instance, in China, aliens are required to provide their passports and hotels are required to make a photocopy of it by law when checking in).
- RileyJames 8y ago
  Also in India & many other countries. In India they usually took multiple photo copies of my passport. I would be incredibly surprised if my passport wasn’t for sale online, it’s been photocopied at least 100 times.

stcredzero 8y ago

The problem with KYC is the same as the problem with many laws: it’s an inconvenience for the good guys, and only stops the dumbest of the bad guys. It's not just an inconvenience for the good guys. For community banks, the penalties for messing up are a much bigger deal than for an HSBC or a Bank of America. The problem isn't the stupidest of the bad guys. The problem are the still-stupid bad guys who have a modicum of ability. For smaller banks, who have to pick from borrowers who can't get a loan from the big banks, there are also marginal good guys who can get themselves into trouble, financial and/or legal. With more banks closing branches and allowing opening of accounts online, and an increasing number of online “KYC compliance solutions” with dubious security, this problem will only get worse IMO. Agreed. It's very difficult to solve and will be very important. Therefore, this is a possible opportunity?

thecosas 8y ago
Here's a company that's trying to approach it with blockchain: https://tradle.io/ https://tradle.io/

eftychis 8y ago

Yes. Please do not ask or share photocopies of your documents over insecure channels. And even then you trust the person on the other line not to screw up with your data... Especially in the U.S. where a person just needs to know your SSN apparently...

devy 8y ago

Along the lines of getting identity stolen, hotel front desks are one spot. (for instance, in China, aliens are required to provide their passports and hotels are required to make a photocopy of it by law when checking in).

RileyJames 8y ago
Also in India & many other countries. In India they usually took multiple photo copies of my passport. I would be incredibly surprised if my passport wasn’t for sale online, it’s been photocopied at least 100 times.