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title: Know Your Investor Verification - Curbing Investment Fraud in Businesses

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# Know Your Investor Verification - Curbing Investment Fraud in Businesses
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Businesses are attempting to put in place financial preventive measures to safeguard transaction records and data processing. To confirm the attractiveness of an investment, reliable investor verification services are required. Investors and financial organizations have unique relationships depending on the experience they have. The user is aware that the investment solution offers assistance to potential internal investors. There are allegations that Australian investors own 20% of the shares in the company, according to the Financial Times. The involvement of investors in frauds, such as money laundering and terrorism financing, explains the reasons for their involvement in financial frauds. Financial firms must use dynamic mechanisms in their knowledge investment services to comply with regulations. 
### What is KYI?
Known as KYI, this program verifies a customer's investment sources, business PAN card, revenue information, and tax information. The transition to digital platforms and the rising financial growth necessitate online investor verification to prevent financial fraud. 
Know Your Customer to Know Your Investor
Financial institutions start checking every new customer. Financial crimes continue to grow and affect the business sector. There are various financial industries where KYC compliance policies are ignored. Digital investor verification services provide KYC (Know Your Customer) as it is a basic requirement for customer verification. Today, banking channels are more vibrant than ever, as a variety of customers turn to merchant accounts for investment purposes. After that, the illegal transfer of money from domestic accounts to foreign ones was discovered. A technological solution for know your investor can provide effective procedures to verify whether a customer’s registration is a business history, an investment portfolio or a simple customer account. To avoid scams, customers should work with online [[investor verification service](https://shuftipro.com/know-your-investors/)] providers. 
### Why is Online Investor Verification Service Compulsory for Businesses?
The digital revolution is gaining momentum, and financial institutions are seeing more opportunities for digital investments. Financial accessibility affects all areas of business, but fraud can wreak havoc in the financial sector. This discourages a large number of investors from investing in the market. A large number of investors use fake data to invest in the market, which harms financial growth. This system requires electronic authentication for investor onboarding to verify log-in details. The COVID-19 pandemic has damaged global financial markets and supply chains badly. This situation has opened up several potential business opportunities. Therefore, the investor's investment must undergo verification checks before becoming part of the financial market. 
Hike in Money Laundering Due to Financial Fraud
The major problem for global financial organizations is money laundering. The circulation of black money is a common phenomenon today, but it has a negative impact on the financial system. Genuine investors are reluctant to invest due to frequent fraud attempts. Recently, a network of fraudulent investments was detained in Bulgaria. The fraud cost somewhere between 10 million and 15 million euros. Without know your investor verification businesses may lead to serious financial fraud, bribery, and money laundering cases abroad. The business sector usually obtains credit card services, but fake investors use fake identities to obtain credit cards by falsifying assets. This paves the way for professional money launderers. The illegal transfer of billions of dollars to fictitious accounts is an obvious instance of ongoing financial fraud. 
Global authorities demand that all financial institutions choose compliance protocols for digital investor verification services in order to avoid unfavorable financial outcomes. 
### AI-based Know Your Investor Solutions 
It is no secret that customer satisfaction and financial Return On Investment (ROI) go hand in hand in the financial arena. Artificial Intelligence (AI) algorithms are making know your customer processes easier in a more enhanced manner. The AI algorithms are capable of processing the code to thoroughly check the investor's background against thousands of sanctions and international watch lists in order to confirm their authenticity. Thousands of AI models check the transactional information and identity documents of customer investors. As soon as the processing is complete, the results are extracted, saved in the database, and given to the organization for investor authentication. Digital AI-powered solutions are deserving of consideration to manage investment issues for monetary equilibrium while deterring fraudsters. 
### How Know Your Investor Verification Smooth Financing?
Digital dynamics are changing rapidly, and the investment market is facing many challenges due to rapid internet integration. Global regulators are cracking down on financial industries that harbor financial fraudsters. The investment sector is also expanding, but the lack of investor control procedures has a negative impact on the global market. The global financial system requires radical reforms to match the investment identification system. Deploying optimal digital solutions can help reduce investment fraud.
