Preventing Online Frauds Through AML Solution in 2022 | A Basic Guide

As technology is advancing, so does sophisticated money laundering AML Solution. There is no platform at the moment that has not been targeting and exploited by scammers. What criminals do, they gain money from illegal means and then make sure that the money can’t be ever trace back to them. This raises a question on the company’s reputation and credibility. Thus, businesses are in dire need of robust AML solutions that mitigate all types of money laundering cases through better AML compliance.

Types of the Common AML Solution Fraud

Some of the most popular types of AML fraud are as under:

  1. Stolen or Fake IDs

The original identity of any individual is stolen which is later used to open a fake bank account. Identities are stolen in many ways including old hacking, phishing, and through fake job openings even. 

  1. Synthetic IDs

Synthetic identity is create by combining the fake information of an individual with the original one. For example, many fraudsters steal the information of innocent kids who have a clean credit history. Then they use it for their illicit means. Once the real information is stolen, it is really easy to create a fake identity using software that fools the latest credit scoring. 

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Importance of AML Verification 

There are many reasons why any organization implements an AML solution, among which the most important is that they are efficient when it comes to handling large transactions. Furthermore, using machine learning the company can automate transactions that remove the need for any manual input. It helps to scan data from multiple sources and therefore eliminates the requirement of manual reviews. 

Another important advantage that the AML solutions offer is that they help the company to comply with the regulations which as a result protect the company from heavy penalties. 

Challenges of AML Screening 

One of the biggest controversies associated with Anti Money Laundering solutions is whether they are really effective in mitigating money laundering frauds or not. As there is little evidence that suggests that they help to catch criminals, fraudsters, terrorists, and other scammers that exploit the financial system. 

Another challenge that the AML solutions encounter is that the companies still require a team of people to handle. It monitor transactions even when they are automate. 

The biggest challenge that AML security comes with is not the deployment of the right team to avoid money laundering. The friction that it causes for the clients. It is especially damaging those companies that entirely rely on desktop or mobile for a painless and fast onboarding procedure. When the clients are asking many questions to verify their identities.

Features to Consider in AML Systems 

The features that any company should consider while selecting an AML monitoring system depend on the work nature of that company. But, there are some important features that every organization must keep in mind while picking AML services. They include:

  • It should have data enrichment capacity which means that it has the capability of building users’ profiles that details the data from all the external sources on a single data point. For instance, to check any email address that is authentic and deliverable, and if yes, then what kind of domain can pose a threat to the company. 
  • Customizable rules either reject or approve the given task in real-time to facilitate the processing time and enhance the accuracy of business without affecting the journey of a user. This is best analyze through the overall risk score. 
  • It is good if the AML solution provider would offer you APIs that can track social media and give you more information about the particular user, acting as an online passport. 
  • Perform enhanced due diligence on PEP to combat sophisticated money laundering. 
  • It should give the choice to pay per individual which would give the small businesses more flexibility to grow. 

How Shufti Pro is Helping Combat Money Laundering?

Anti Money Laundering solutions not only replace the typical investigation procedure. But also ensure that money launderers, criminals, and fraudsters are discouraged to do nefarious activities anymore. 

With Shufti Pro’s AML solutions, the companies can screen their customers within seconds. It also prevents their companies from any kind of fraudulent activities. Its fully automated AML monitoring eliminates the need for manual services. It provides enhanced data security to the companies which build their reputation in the market.


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