KYP (Know Your Patient) stems from the KYC (Know Your Customer) concept. It’s the process of verifying and establishing a patient’s identity to ensure that the patient is who they claim to be. KYP is specifically used in the healthcare industry to prevent medical identity theft and related fraud. At its core, KYP aims to protect the patient’s rights by ensuring that healthcare professionals share sensitive medical information only with the rightful patients.
The concept of KYP, however, isn’t limited to the healthcare industry. In this blog post, we will discuss the expanding scope of KYP beyond healthcare.
The origins of KYP in healthcare
Healthcare fraud is a growing concern, costing the global industry billions annually. According to Forbes, medical records were breached at a rate nine times higher than financial records in 2016. Over the years, this breach of medical records has only skyrocketed. Between 2009 and 2023, 5,887 healthcare breaches exposed over 519,935,970 records.
Medical records hold a wealth of personal information that can be used to steal an individual’s identity and commit financial and medical fraud. KYP regulations mitigate the risks of data breaches and identity theft in medical organizations.
For example, the HIPAA regulations in the U.S. protect the integrity and confidentiality of patient data. Healthcare organizations can face penalties worth billions of dollars in case of violation.
Role of KYP in preventing healthcare fraud


During patient onboarding, a healthcare provider collects patients’ information, such as their name, social security number, and health insurance information. The collected information and documents are verified against government databases to establish the patient’s identity.
Now, each time a patient interacts with the healthcare organization, a quick verification occurs to ensure it’s them. If the verification fails, the patient cannot access the medical services or the requested health record.
This way, healthcare organizations prevent fraudsters from committing medical fraud.
The expanding scope of KYP: beyond healthcare
Know Your Patient (KYP) principles are no longer limited to healthcare. With rising fraud and compliance challenges, industries across the board now leverage KYP for identity verification to build trust, enhance security, and reduce risks.
The KYP fundamentals can be used to detect financial fraud in many industries.
Importance of identity verification across industries
In a digital-first world, verifying identities is critical. Whether ensuring compliance or protecting against fraud, businesses rely on KYP practices to validate users and secure sensitive interactions.
Here’s how it plays out in key industries:
Insurance
Fraudulent claims are a constant challenge in the insurance industry. KYP helps by:
- Ensuring policyholders’ identities are authenticated before claim processing.
- Preventing duplicate claims and detecting exaggerated losses.
Government and public services
Governments lose billions yearly to fraud in welfare programs, tax filings, and identity document issuance. KYP helps by:
- Verifying individuals before providing benefits or official identification.
- Ensuring fraudulent claims are flagged early in the process.
For example, tax authorities can verify applicant details to prevent refunds based on medical expense scams.
Fintech: ensuring trust and security in digital transactions
Fintech platforms are growing rapidly, and with this growth comes an increased need for strong identity verification measures to ensure trust and security in digital transactions.
Preventing account takeover and synthetic identity fraud
Fintech companies are prime targets for account takeover attacks, where fraud rings gain control of a customer accounts. KYP tools allow fintech platforms to perform real-time identity verification, ensuring only authorized users can access accounts.
Additionally, KYP helps detect synthetic identity fraud, where fraudsters create fake identities using actual and fictitious information to open accounts and commit fraud.
Protecting user data and privacy
With KYP, companies can securely verify their customers’ identities while protecting sensitive information through encryption and secure storage methods. These protections are not just about compliance but also help maintain customer trust.
Preventing underage gambling and age verification violations
KYP tools can verify players’ age and identity to ensure compliance with gaming regulations and protect minors from inappropriate content and gaming experiences.
The benefits of implementing a robust KYP solution
A robust KYP solution offers a range of benefits that go beyond just security. For industries facing high-risk transactions and fraud challenges, it ensures operational efficiency, regulatory compliance, and customer trust.
Let’s explore the core advantages.
1. Enhanced security and fraud prevention
KYP systems prevent identity theft, account takeover, and fraud through multiple layers of verification. Multi-factor authentication (MFA), biometric checks, and real-time fraud monitoring all block unauthorized access to accounts, especially in high-stakes sectors like banking and fintech.
Behavioral analytics detects suspicious patterns, such as sudden location changes or unusual transaction types, providing real-time alerts for faster action.
2. Improved regulatory compliance
Adhering to regulatory standards is non-negotiable across sectors. KYP helps meet KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations by verifying identities and tracking suspicious activities in real-time.
KYP ensures that all customer onboarding complies with regional and global anti-fraud laws for financial services and cryptocurrency exchanges. By automating compliance, it minimizes the risk of fines, legal action, and reputational damage.
3. Streamlined customer onboarding
If identity verification is cumbersome, the onboarding process can be a bottleneck. With KYP, customers can quickly authenticate their identity through digital ID verification (like scanning passports, facial recognition, or government-issued IDs).
Instead of waiting days for manual verification, customers are onboarded within minutes, improving conversion rates and reducing drop-offs in the fintech and e-commerce sectors. It also automates verifying documents and cross-checking them with databases, streamlining both the user and admin experience.
4. Enhanced customer trust and satisfaction
KYP builds confidence by demonstrating a commitment to data security and fraud prevention. Customers are more likely to trust platforms that use KYP to safeguard their personal information.
Secure and seamless identity verification boosts customer loyalty. In gaming and e-commerce, customers feel safer knowing their accounts and transactions are protected by stringent verification methods.
5. Reduced operational costs and risks
Managing fraud and compliance manually is expensive and resource-intensive. KYP reduces the need for extensive human intervention in identity verification and fraud detection, allowing businesses to allocate resources more efficiently.
Automated KYP systems reduce costs associated with handling fraud cases, customer disputes, and fines related to non-compliance. With AI enhancing fraud detection capabilities, businesses are better equipped to proactively identify risks, cutting down on post-incident expenses.
Key considerations when choosing a KYP solution
The efficiency of the KYP program depends on the efficacy of your KYP solution. We have a list of quick considerations to help you choose the right fraud detection solution.
Compliance with relevant regulations and standards
The KYP solution must comply with the necessary regulations applicable to your industry. This may include protocols for AML, data protection, and information security management.
The KYP solution must use strong encryption standards and have end-to-end security.
Accuracy and reliability of verification methods
The KYP solution should support different verifications to detect different types of identity fraud. Ensure the solution uses advanced identity verification techniques like biometrics, AI-driven fraud detection, and liveness checks to confirm authenticity.
Evaluate the false positive and false negative rates of the system. A high false positive rate could cause unnecessary delays and friction for legitimate customers, while false negatives allow fraud to slip through the cracks.
Check the system’s ability to verify both physical and digital identities accurately across a range of document types and regions.
Data privacy and security measures
Protecting sensitive customer data is a non-negotiable priority in any KYP solution. The solution should employ end-to-end encryption to secure data both in transit and at rest. It should be GDPR-compliant and follows best practices for data storage, such as data anonymization and minimal retention periods.
Look for solutions that offer role-based access control (RBAC) to ensure that only authorized personnel have access to sensitive customer information.
Scalability and flexibility to accommodate growth
Choose a provider with cloud-based infrastructure that supports horizontal scaling to manage surges in demand or growth into new markets.
The solution should be adaptable to various industries and use cases, allowing you to expand into new regions or verticals without needing a complete overhaul of your identity verification processes.
Integration with existing systems and processes
The solution should easily integrate with your existing CRM, transaction systems, and risk management platforms to streamline operations. APIs are key for making integrations easy. Ensure the provider offers robust APIs to connect KYP systems with your internal platforms for smooth data exchange and automation.
Consider the solution’s ability to integrate with third-party services like banking APIs, government databases, or social media platforms for identity verification.
Choose the right KYP solution for your business
KYP might be designed specifically for healthcare industries, but it applies to every other industry grappling with fraudulent activities. Whether yours is a financial institution, insurance company, e-commerce business, or hospitality unit—it’s time to implement KYP.
Integrating robust and modern AI-powered KYP solutions can safeguard your business against potential reputational and regulatory damage. With Hyperverge, you get an easy-to-integrate and fully compliant scalable KYP solution suited for your industry.
FAQs
1. Why is it important to know the patient?
Knowing the patient is crucial for verifying their identity, ensuring accurate medical treatment, preventing fraud, and protecting sensitive data. It helps establish trust and supports personalized care, leading to better patient outcomes and compliance with healthcare regulations.
2. How do you identify your patient?
We can confirm patients’ identities by verifying their personal information against a government database. This includes verifying details such as name, date of birth, social security number, and insurance policies. Advanced methods of biometric and AI identity verification can be used to verify the patient’s identity.
3. What is knowing the patient?
Knowing the patient involves verifying their identity and gathering essential background information, such as medical history, to ensure accurate treatment, prevent fraud, and protect sensitive data. It’s a critical part of maintaining trust and providing personalized, safe care.