Student KYC Identity Verification is a mandatory process by which the identities of students in different educational programs are verified. Especially, the students applying for foreign education come from different jurisdictions. In this case, the risk of illicit activities through identity theft increases. This blog discusses the concepts of Student KYC, Distance Learning, and major requirements for Student ID Verification.

Overview of KYC Identity Verification

KYC (Know Your Customer) is the process of customer onboarding in businesses and other organizations. KYC is the basis of identity verification that ensures the implementation of Anti-Money Laundering regulations organization-wide.

KYC Identification is a stepwise procedure having 4 main steps:

• Customer Acceptance Policy (CAP): Ensuring that the customer has agreed to share his personal information and data for customer identification. It is also called Customer’s consent or user’s consent.
• Customer Identification Program (CIP): It contains identity verification procedures through different technologies such as biometric verification, document verification, etc.
• Customer Due Diligence (CDD): Risk assessment is done through different levels of customer due diligence (CDD). If the risk is greater, Enhanced Due Diligence (EDD) is performed with added KYC Checks.
• Ongoing Monitoring: Continuous monitoring of onboarded customers’ identities for updated information and transaction monitoring for detecting risky activities is mandatory.

Why KYC Identity Verification is Important for Students?

There have been multiple cases in recent years where the lack of Student KYC practices has led to serious reputational damages and financial losses to both institutions and students. It is because of the insufficient data on student’s IDs that were used for criminal activities such as identity theft, money mule scams, etc.
For example, in 2022, Nehemiah Joel Weaver, 36, from San Diego, California was charged with Identity Theft of UCSD Students in Bank and Pandemic Unemployment Insurance Fraud Schemes.
KYC Identity Verification reduces the risks of identity fraud and other criminal activities and protects genuine students’ identities. Through KYC verification, every student is obligated to submit authentic identity documents and go through a Student verification process. This will ensure that there is no fraudulent person registering in that educational institution or program.

Significance of Student Identity Verification

Here are the major benefits of implementing KYC procedures for Student ID Verification in universities and other educational institutions:

• Enhanced student security
• Upholding the integrity of the institution
• Improved services to students
• Protection from money laundering, terrorism funding, and other dangerous crimes
• Ensuring students’ legitimacy and proper conduct of students through regular monitoring of their activities via KYC Ongoing Monitoring.

Student Identity Verification in Distance Learning

Distance Learning is a trending opportunity for students who cannot physically attend the educational institution yet they are eager to learn and grow. In Distance Learning student take lectures remotely through online portals or live video conferencing with their tutors. They also attempt their examination and present their thesis online to the panel. In this way, students can earn a bona fide degree through distance learning.
Since students are not physically present, it is vitally important for them to register with their authentic and valid details to ensure that no fraudsters or ineligible students are penetrating the educational system and that the degree is awarded to only recognized students.

Major Requirements for Student Identity Verification in Distance Learning

Many educational setups have embraced the importance of Student Identification. They have also focused on making the student IDV process simple, easy to understand, and highly secure. For example, CUNY (City University of New York) benchmarks Student IDV for international students and makes it a secure and fast process. It stresses the use of AI technology for the entirety of the onboarding process through the following elements:

• Importance of Social Presence through Self-presentation and transactional interaction online
• Use of e-Portfolios
• Use of Student Photos and videos in terms of self-introduction
• Online Participation in Learning Communities
• Groups and Teamwork
• Ensuring that Plagiarism-free work is submitted online
• Video Conferencing (Synchronous and Asynchronous)

Lebanon Valley College’s Example

Lebanon Valley College has a defined policy for Student Identity Verification in Distance Learning including the following main regulations:

• The purpose of this policy is to ensure compliance of Lebanon Valley College with HEOA (Higher Education Opportunity Act) US.
• All courses and programs must verify the student registering for that course or program.
• Multiple methods shall be used to verify the actual identity of the student including:
• • Individual’s Login ID and Password
• • Examinations
• • Effective technologies and practices in verifying student identity
• The policy also inculcates compliance standards for students where students need to comply with the password policy and verification of identity standards.
• Mainly, the responsibility for college-wide implementation of this policy rests with the Vice President of Academic Affairs.
• Student Privacy shall be maintained at all times as Lebanon Valley College complies with (FERPA) Family Educational Rights and Privacy Act.

Role of KYC Solutions in Student Identity Verification

KYC Onboarding Solution Providers specifically focus on the needs of the education sector while developing their Identity Solutions. Their part is crucial as they know the exact needs of a KYC Onboarding in case of student verification. For instance:
In universities an ideal Student KYC program can have:
Remote Identity verification facility through smartphones.
A vast and updated criminal database to cross-match student identities.
The lowest number of false negatives and false positives ensures a high level of accuracy in verification.

KYC Solutions and the Education Sector require a helping hand or a consultancy like KYC AML Guide to bridge the gap between their services and requirements. They provide KYC Technology Buying consultancy supported by the KYC Vendor Analysis to rationalize the choice in selecting the best Student KYC Identity Solution.