KYC, or Know Your Customer, is an important process for businesses that need to verify the identity of their customers. KYC data typically includes personal information such as names, addresses, and identification numbers. This information is sensitive and must be protected from unauthorised access. In this article, we will explore where your KYC provider is storing your data and why you should care about data security in 2023.
Which Storage Options are Available?
When it comes to storing KYC data, there are several options available. Some companies choose to store data on their own servers, while others use cloud-based services. Cloud-based services are becoming increasingly popular due to their convenience and cost-effectiveness. However, the security of cloud-based services is a growing concern.
Cloud-based services store data on remote servers that are maintained by the service provider. This means that the data is not stored on the company's own servers, but rather on servers owned and operated by the cloud service provider. Cloud-based services typically offer a high level of security, but they are still vulnerable to cyber-attacks and data breaches.
On the other hand, local storage means that the data is stored on servers located in the same country as the company. This provides an extra layer of protection against cyber-attacks and data breaches. Local storage can be more expensive than cloud-based services, but it provides greater control and security over the data.
Another important difference between cloud-based services and local storage is the level of control over the data. With cloud-based services, the service provider maintains control over the servers and the data stored on them. This means that the company has limited control over the security measures in place to protect the data.
With local storage, the company does have control over the security measures in place to protect the data. The company can implement its own security measures, such as encryption and multi-factor authentication, to protect the data. This provides an extra layer of security and control over the data. But often organisations can miss these steps, so if you are considering a particular provider - this may be a good question.
Types of Data Protection Available
In addition to the storage type, the security measures in place to protect the data are also an important consideration. Encryption is a method of encoding data so that it can only be read by someone who has the key to unlock it. This makes it difficult for hackers to gain access to sensitive data even if they manage to breach the security measures in place.
Multi-factor authentication requires users to provide more than one form of identification to access the data. This makes it more difficult for unauthorized users to gain access to sensitive data. By choosing a KYC provider that uses encryption and multi-factor authentication, companies can ensure the security of their sensitive data.
Future Proofing with Decentralised Storage
In addition to cloud-based and local storage, there are also decentralized solutions available for storing KYC data. Decentralized storage is a new and innovative approach to data storage that is becoming increasingly popular due to its security and privacy benefits.
Decentralized storage solutions, such as Togggle, use a network of nodes to store data. Instead of storing data on a single server or with a single provider, data is distributed across the network, making it more difficult for hackers to gain access to sensitive data. Decentralized storage also offers greater privacy since data is not stored in a central location.
Togggle's decentralized solution is based on key-pair technology, which provides an added layer of security. This technology uses a decentralized framework to record and verify transactions, making it difficult for hackers to tamper with the data. This makes decentralized storage a highly secure and resilient solution for storing sensitive data.
One of the benefits of decentralized storage is that it offers greater control and ownership over the data. With cloud-based and local storage, the service provider maintains control over the data. With decentralized storage, the user has complete ownership and control over their data. This gives businesses greater control over the security measures in place to protect their sensitive data.
Decentralized storage solutions are also highly scalable and cost-effective. Since data is distributed across the network, it can be easily accessed from anywhere in the world. This makes it ideal for businesses with a global presence. Decentralized storage is also cost-effective since it eliminates the need for expensive hardware and infrastructure.
Where your KYC provider is storing your data is an important consideration. Choosing a provider that uses robust security measures, such as encryption and multi-factor authentication, can help protect your sensitive data. Cloud-based services are a popular option due to their convenience and cost-effectiveness, but they are vulnerable to cyber-attacks and data breaches. Local storage provides greater control and security over the data, but it can be more expensive. Decentralized storage solutions, such as Togggle, offer a highly secure and privacy-focused approach to storing KYC data.
Decentralized storage provides greater control and ownership over the data, making it an ideal solution for businesses that need to protect their sensitive data. With its scalability and cost-effectiveness, decentralized storage is a promising solution for businesses looking to improve their data security. By taking these factors into consideration, companies can choose a KYC provider that meets their security needs in 2023 and beyond.
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