Honey Badger

KYB (Know Your Business)

Administrator

Know Your Business (KYB) is a process used by companies to verify the identity and legitimacy of other businesses they engage with. Similar to Know Your Customer (KYC), KYB is crucial for due diligence and compliance, but it focuses specifically on corporate clients and business partnerships.

How Does KYB Work?

KYB involves several key steps:

  • Business Identity Verification: Confirming the legal existence of the business by checking official records.
  • Understanding Business Structure: Analyzing the company’s structure, including key management personnel and beneficial ownership.
  • Financial Health Checks: Assessing the financial stability of the business through reports and credit scores.
  • Regulatory Compliance Checks: Ensuring the business complies with relevant laws and regulations.
  • Ongoing Monitoring: Continuously monitoring the business for changes in structure, ownership, or financial status.

Benefits of KYB

  • Risk Mitigation: Reduces the risk of engaging with fraudulent or financially unstable businesses.
  • Regulatory Compliance: Helps in adhering to anti-money laundering (AML) and other regulatory requirements.
  • Enhanced Reputation: Builds trust with stakeholders by ensuring associations with legitimate and ethical businesses.

Who Benefits from KYB?

  • Financial Institutions: For vetting potential corporate clients and partners.
  • Businesses in High-Risk Sectors: Like fintech, real estate, and international trade, where the risk of fraud is higher.
  • Supply Chain Managers: To verify the authenticity of suppliers and distributors.
  • Investment and M&A Professionals: For thorough due diligence before investments or mergers and acquisitions.

Examples of KYB in Action

  • A bank conducting a KYB check before extending a loan to a company or providing invoice finance.
  • A fintech firm verifying a new business partner’s compliance with AML regulations.
  • An e-commerce platform conducting KYB checks on its sellers to ensure they are legitimate businesses.

KYB and Fraud Prevention

  • Detecting Shell Companies: KYB helps in identifying businesses with no physical presence or legitimate business activities, often used for money laundering.
  • Uncovering Hidden Relationships: It can reveal undisclosed relationships that might pose a conflict of interest or risk.
  • Tracking Financial Anomalies: Regular financial checks can spot unusual transaction patterns indicative of fraud.

KYB is a vital process for companies to ensure they are engaging with legitimate, financially stable, and compliant business entities. By conducting thorough KYB checks, businesses can protect themselves from financial and reputational risks and maintain compliance with regulatory standards. As the business world becomes increasingly interconnected, KYB emerges as an essential tool for secure and responsible corporate relationships.

How can Honey Badger help?

Honey Badger runs hundreds of KYB checks through a single lookup. Risk checks and insights include:

  • Company existence and financial standing
  • Director verification, AML and sanctions checks
  • Phone number and email risk checks
  • Company reputation and reviews
  • Website domain and online presence checks

Honey Badger calculates a risk score that indicates how likely a business is to pose a credit risk, be fraudulent or be associated with financial crime. To find out more visit Honey Badger’s Risk Insights page.

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Account Servicing

Stop fraud and improve customer experience during account servicing by eliminating SMS One Time Passwords (OTP). Instead, leverage phone based SIM authentication which involves comparing data generated by the Mobile Network Operator (MNO) with mobile device session data. This provides a foolproof way of proving that an individual is in possession of their two-factor device.

Benefits

This new approach to authentication isn’t susceptible to SIM swap attacks and doesn’t require the user to enter a password. Ultimately, account takeover attacks are blocked, while customer experience is improved and the time taken to service a request us reduced.

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 LENDERS   ONBOARDING   AUTHENTICATION 

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Contact Data Cleaning

Contact Data Cleansing verifies that the contact and personal information you hold isn’t out of date or inaccurate. Data is compared against the information held on file by Mobile Network Operators (MNOs). Whether processing a single record or sanitising thousands of records in batch, you’ll quickly identify bad data.

Benefits

The case for maintaining up-to-date records goes way beyond good practice for compliance and regulatory reasons. It’s critical to ensuring customers are contactable. Furthermore, it reduces security threats by ensuring communications aren’t sent to the incorrect individuals.

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 LENDERS   FINTECH  KYC 

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SIM Swap Detection

SIM Swap Detection is a critical step in stopping account takeover. Why? Because account takeover attacks commonly exploit the ease of which a phone number can be stolen by simply assigning it to a new SIM. This allows bad actors to intercept communications, such as SMS one-time-passwords (OTP), which are used by 93% of enterprises worldwide to verify customers.

Benefits

SIM Swap Detection instantly and silently checks the history of a SIM card to see when it was last swapped. Recent swaps indicate high risk of fraud, allowing you to take appropriate action, such as failing verification or requesting additional security procedures are followed.

Made for

 FRAUD PREVENTION

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Social Trace

Social Trace significantly reduces the risk of losing contact with your customers by diversifying communication channels. Simply drop the Social Trace widget into your onboarding workflow and allow customers to connect one or more social channels with just a click.

Benefits

Lenders who capture social channels are significantly less likely to lose contact with their customers. Why? Because different demographics prefer to engage over different channels. This is particularly important when it comes to collections. Initiating contact over different channels increases your chances of getting a response, which in turn increases the likelihood of resolving late or non payment. 

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 LENDERS   ONBOARDING   COLLECTIONS

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Mobile Fraud Check

Mobile Fraud Check allow you detect fraud indicators using data provided by Mobile Network Operators (MNOs). Key checks include device overseas, call forwarding, SIM swap, a high risk number database lookup and much more.

Furthermore, Mobile Fraud KYC allows you to verify a person’s firstname, lastname, date of birth and postcode against the data held on file by MNOs. Since MNOs conduct their own KYC checks on new customers, it gives you the ability to match personal information you collect against a trusted and verified source.

Benefits

Mobile Fraud Checks happen instantly and with zero customer friction. The data held by MNOs is often more recent and reliable than other data sources and a level of granularity is provided,  allowing you to see how many and which KYC fields matched.

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 LENDERS   ONBOARDING   FINTECH  RISK ANALYSIS

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Mobile Data for Credit Risk

Mobile Data for Credit Risk delivers the data required to predict credit risk based on a persons mobile phone information. Key data attributes include the network provider, line type, and KYC match information. Working in partnership with lenders we’ve been able to clearly identify correlations between this data and the likelihood of a loan going into arrears.

Benefits

Open Banking Vs Mobile Data. Which is the most effective in predicting bad borrowers? A recent project with a UK lender compared a risk model built with Open Banking against a model built with Honey Badger’s Mobile Data. The results showed that both models outputted almost identical risk scores. The difference? Mobile Data could be deployed immediately with no customer friction required to calculate a risk score.

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 LENDERS   ONBOARDING  RISK

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Geo Authentication

Geo Authentication™ provides frictionless identity verification that reduces abandonment rates. Users simply select images that they recognise from nearby to their address. In built anti-fraud controls ensure that valid users can complete the challenge whilst bad actors are blocked.

Benefits

Leading lenders such as Amplifi Capital use Geo Authentication during applications as an alternative to more intrusive identity verification checks, such as document uploads, that cause high friction and lead to increased dropouts. Completion rates with Geo Authentication are 28% higher and have subsequently helped drive an increase in revenue for the business.

Made for

 LENDERS   ONBOARDING   ACCOUNT RECOVERY 

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 EMBEDDABLE WIDGET   WEB INTERFACE   API 

Pricing

 PAY PER AUTHENTICATION CHECK 

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