The intersection of the digital and financial worlds is complex and requires the best cybersecurity measures. Maintaining those standards is vital, even after people stop using their devices. Know Your Customer (KYC) processes prevent fraud while remaining in compliance with industry regulations. Fintech company leaders should have digital security as a top priority now that cybercriminals create deepfake videos to access devices containing sensitive data.

Cybercriminals could expose unprotected sensitive data, ruining the company’s reputation and risking federal fines. Lapses in data security can happen when devices get decommissioned. Fintech companies are particularly at risk from this because related software can exist across smartphones, point-of-sale (POS) systems and computers.

Understanding the growing risk vector within the device life cycle management process could better protect everyone within the industry. Fintechs can avoid significant risks related to mismanaged devices by exploring the preventive measures below.

Why KYC Devices Are Growing in Popularity

The fintech market will likely reach $1.5 trillion in revenue by 2030, making it a lucrative world for customers and professionals. Managing that amount of money requires extra security, especially when verifying new or returning clients.

Digital devices can use verification steps like biometrics and fingerprints to ensure only verified individuals access accounts. The robust security measures can strengthen people’s trust in their chosen fintech institution. They may not worry about their account getting hacked if they know the latest digital security measures are in place.

Emerging Threats to KYC Digital Identity Verification

Cybercriminals also know the fintech world is growing quickly. They work on new ways to get past biometric security measures, especially on decommissioned devices. Experts in IT security recommend erasing or destroying data on any unwanted device, but some teams may skip the step or forget to double-check that all sensitive data is gone.