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HomeTECHTechnology TipsInvestor Verification Services – Answers to Investment Industry's Problems

Investor Verification Services – Answers to Investment Industry’s Problems


While international markets are experiencing a boom in respect to their wealth, assets, and investments. Simultaneously, the investment sector is seen under the stress of prevailing criminal threats. This subjects them to strict know your investor

 regulatory checks. Adding further to this is the inefficient screening during the digital onboarding of clients. Ultimately, industries pave the way for criminals as they lack effective investor authentication. 


The investment industry provides financial support to both startups and established businesses. However, they involve the risk of onboarding risk-possessed entities that cause abruptions for both the industry and affiliated firms. To combat these happenings, the investment industry requires robust investor verification services. Read on to know how digital services make onboarding and fraud prevention easier. 

Investment Industry – A Brief Overview

In previous years, investment firms are facing a rise in challenges both related to investors and companies. In turn, they are bringing financial crimes, fraudulent partnerships, and market volatility. As per findings, there has been a noticeable rise in investment fraud which marks to be over 59%. Similarly, the investment industry is also facing a tremendous increase in transaction-related scams. 


Considering these consequences, law enforcement authorities are seen taking strict actions to enforce know your investor regimes and better regulate this industry. Furthermore, they are guiding the investment sector to build ties with Financial Technology (FinTech) businesses and build automated investor authentication mechanisms. These solutions help the industry to streamline operations, secure interest, and stay put with the evolving regulatory standards.


The automated investor verification services are capable enough to identify entities in real-time while carrying out authentic background checks. Criminals jumping from one region to another in order to escape the regulatory checks cause chaos. It also becomes hard for investment firms to identify them. However, with robust know your investor services in place, the investment industry can identify them in no time. 

Online Investor Verification – Highlighting Fraud in the Investment Sector

The global investment industry faced a significant rise in fraud cases. Keeping these in view, regulatory watchdogs are placing strict countermeasures in place to combat them. The most common illicit activities involve financial crimes, fake profiles, fraudulent investments, loss of millions to partnerships, and much more. The advent of digital services and advanced tools are aiding criminals in performing malicious actions. Despite strict checks in place, investment scams are still making headlines. 


Therefore, the investment sector requires efficient investor verification services to better deal with criminal threats. While on the one side the industry should provide better and more convenient services to customers as well as firms, on the other they should also safeguard their operations against criminal breaches. The AI-powered investor onboarding services largely provide assistance in making this happen. One of the major types of investment fraud is the one taking place on social media. Further details regarding this fraud and how know your investor solutions counter them include.

Social Media Investment Scams

One of the major sources of investment fraud is social media platforms. Where they bring people from around the globe for interaction, they are also paving the way for criminals. Fraudsters use platforms with fewer checks to verify investor such as Twitter, Facebook, and LinkedIn to provide fake investment opportunities. They also pose as a potential investor while they are mere imposters. Furthermore, the lack of efficient know your investor services massively contributes to these scams. Fraudsters easily create fake upfronts and associate with legit firms and leave with big sums of financial loss. 


Moving on, the anonymity provided by these platforms is also another reason why criminals are able to go this far. However, if social media platforms incorporate robust know your investor mechanisms, they can overcome this menace. 

Investor Verification Online – Optimum Solutions to Counter Scams 

Advancements in artificial intelligence are streamlining the accurate verification of investors’ identities. Investor verification services identify forgeries in documents, validate identities, and enable access to global databases. This way the investment industry can fight criminal threats while restricting them at the bay. Investor verification services also effectively protect not only the investment firm’s interest but also the customers. With solutions like automated screening and self-tracking, AI-powered investor verification services help the investment sector take the lead against criminals. 

Concluding Remarks

In the end, know your investor services are serving as the most reliable solutions for the investment industry in combating various fraud types. From fraudulent transactions to social media scams, digital solutions identify all in real-time. Moreover, the investment sector is reaping numerous benefits from online verification solutions. They optimize investor onboarding, streamline their validation process, carry out continuous monitoring, and secure overall operations. 

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