Dynamic Works - From Assumptions to Cryptographic Truth: A Next-Gen KYC Architecture

As synthetic identity fraud accelerates across financial platforms, legacy Know-Your-Customer (KYC) controls built on visual inspection and one-time passcodes (OTPs) are rapidly losing ground. In response, new architecture is emerging one rooted not in assumptions, but in cryptographic proof.

The Problem: Trusting What Can Be Forged

Traditional KYC methods assume that images, voices, and OTPs belong to the rightful applicant. But with the rise of deep-fake video, AI-generated voices, and synthetic ID cards, that assumption no longer hold.

The future of secure identity verification requires binding authentication to data that only a real person with a genuine government-issued credential can provide.

Core Pillars of the New KYC Stack

1. NFC Chip Reading of e-Documents
   By tapping an NFC-enabled passport or national e-ID to a smartphone, the system extracts:

• Digitally signed personal data (DG1),
• A high-resolution face image (DG2),
• Optional biometric data (fingerprints, iris – DG3/DG4).
  Authenticity is verified instantly using the issuer’s public key per ICAO 9303 standards.

1. Active Liveness with 3D Face Match
   The applicant performs a guided video selfie with random head movements and lighting cues. This confirms:

• Presence of a live human (not a mask or deepfake),
• Match between the live face and the NFC chip image.

1. Vocal OTP Within the Video Stream
   Instead of sending an OTP via SMS, the server issues a spoken phrase. The applicant repeats it aloud, creating a secure link between:

• The voiceprint and the applicant,
• The session and the code,
• The timestamp and the live event.

1. Cryptographic Session Seal
   All components chip data, liveness indicators, and vocal code are cryptographically signed and appended to a verifiable credential. Institutions and regulators can later verify integrity with a single signature check.

Security Outcomes

UX Considerations

• Total interaction time ≈ 30–45 s on NFC-enabled phones.
• Accessibility: fallback to secure desktop readers in branch/agent settings.
• Data privacy: biometric templates stored locally; only hashes & signatures leave the device unless customer consents.

Strategic Benefit

This new architecture shifts institutions from a defensive stance trying to detect forgeries to a proactive model of verifying truth. The result is streamlined onboarding for legitimate customers and a drastically reduced fraud surface.

These innovations are part of the DISRUPT program, co-funded by the Research and Innovation Foundation of Cyprus, supporting breakthrough technologies that strengthen the country’s position as a tech and fintech leader. Dynamic Works is proud to contribute to this mission by developing solutions that are built in Cyprus and designed to scale globally.