The investor verification solution is a great way of protecting the investment industry. With multiple methods up its sleeve, the Know Your Investor verification process observes at most business and organization levels for the validation and verification of their clients during the onboarding phase of the process. The online market is investing high amounts of capital in the platforms for gains in market size and economy of the businesses worldwide. According to Statista, the crypto and the NFTs market size is estimated at around 8 billion US dollars which is more than any leading franchise in today’s world.
Investor Verification Service According to The Law
The international laws of security and protection among different countries impose the use of complete KYC identity verification solutions on every new customer. The main reason for the verification check is to stop the money laundering cycle which is increasing each day, especially on digital platforms. The KYI check is performed in compliance with the AML (Anti-Money Laundering) laws which clearly state the act of identity verification for every new client or investor to safeguard the public investment platforms. Let’s see how the KYI verification system processes the data of the investor.
KYI For Secure Investor Onboarding
The investor verification system works as an identification checker for the investors opting for funding in any business or trading platform. The investor onboarding and investor due diligence processes are carried out to make sure the right clients get access to the investment handles online. The processes of secure investor onboarding are explained in this blog.
Background Check Of The Investor
The investor is exposed to multiple checks and assessments during the onboarding process at every business funding process. The background check is one of the main assessments of the investor which proves the previous track record of the person. With the background checks the investor verification system uses the methods of verifying user past records of gathering and participation. The legal authorities are also used for verification of the past records of the client. Businesses use this check for customer evaluation.
Verification of Investor Identity Via Different means of Authorization
An investor is verified by enterprises by evaluating their documents and other legal credentials that prove the identity of the person. With a system based on the new methods of computations, the investor verification system uses OCR and other new technologies derived from AI to detect and read the documents of the investor. The OCR system extracts all the required data from the digital copies of the investor documents for the purpose of identity verification. The business that involves participation in the investment cycle is also required to deliver the legal business verification documents such as the business registrations and banking statements for the security of the online investment systems.
Biometric Evaluation of the Investor For Secure Registration on Investment Platforms
User after the evaluation of the documents the investor is registered through secure biometric verification systems to the prevention of thefts and fraud within the platform. The biometric system of verification is secure as the attackers cannot replicate the investor’s biometric attributes. For this reason, most businesses use facial recognition and other biometric characteristics of the investor to register and verify their identity in later stages of the investment process.
Investor Due Diligence
The due diligence process is a main part of the KYI cycle which investigates the fact and figures of the investor and the associated businesses of the investors. This process includes a review of all financial records of the banking and other associated filings of the investor and other associated firms. Due diligence is followed on the stocks of the investments and funding allowances at several stages of the investor verification cycle.
Financial Assessment of Investor Fundings
The Due diligence process impacts a variety of features of the investors that include stocks of the investment, the capitalization, revenue generation estimation of the investment, and the risks included in the management of future investments by the investor.
Wrapping It Up
With so much dependency on the investments, attackers are targeting the investment platforms to misuse the revenues by their own means. They have invented multiple methods of identity stealing to mimic the identity of the investor for the purpose of scamming the whole system. To tackle this situation of attacks the KYI solution is implemented for the complete evaluation of the user from initialization to completion of the funding process.