Protecting Investments Online With Know Your Investor Verification Service

With the increase in demand for digital funding services such as cryptocurrencies and NFTs, people are investing large quantities on online investment platforms. The know your investor verification service is a solution to all the problems of online funding and investment platforms. Most of us have seen people investing in crypto, buying and trading with new coins and tokens. 

The digital investment platforms are getting their market high each passing day with multiple new opportunities for their users to invest and take advantage of in this digital world. Different researches show that the global market for investing in digital platforms increased greatly in recent years with a record-breaking capital of 8.7 billion US dollars recorded in the first half of 2021 as stated by Statista.

Know Your Investor Service

In the past years of cyberattacks in the investment market, the attackers have successfully laundered more than five hundred million dollars with investment frauds as per Shufti Pro news. The KYI (Know Your Investor) verification service is a check performed to protect the market from these types of frauds and leaks. It is an important aspect of the KYC (Know Your Customer) compliance that every major investment platform has complied with to secure the funding market globally. The KYI service performs different checks on various investors and proves their identity before any investor onboarding process. The ICOs are using the KYI service efficiently to secure the investment platform. The investor verification service works as follows:

Investor Identity Verification

The very first stage of the KYI cycle is to verify the identity of the investor who is participating in the investment cycle. The KYI identity verification uses several processes of KYC compliance to verify the identity of the user. All the steps are as proposed by the AML/CFT act to protect the market from money laundering. 

Investor Document Verification

At the very step of investor identity verification, the documents of the investor are verified. Most digital platforms use new technologies like AI and OCR to analyze and process the documents of the client. The document verification phase ensures the age of the investor, the legal acceptance, and the identity of the investor with respect to the authorities. The documentation phase requires multiple documents of the person with identity cards, their banking statements, and other legal paperwork provided by the national offices to ensure the identity of the user.  

The document verification phase is also carried out for investing businesses that are part of the investment cycle. With multiple checks and validations to the business documents to verify the business identity and their associated network, investors are verified to continue their investment and funding cycle.

Investor Biometric Evaluation

The investor is evaluated biometrically as well to fulfill an extra layer of security, but in most digital platforms of cryptocurrencies, the biometric verification process is compulsory for the verification of the investor. With the use of biometrics such as facial recognition and fingerprint impressions, the investor identity verification process became more secure and efficient, as most digital investment firms rely on biometric verification systems to verify their clients.

KYI Due Diligence

The investor’s due diligence is carried out as the complete authorization process of the investor. The due diligence service is based on the AML (Anti-Money Laundering) act of preventing bad actors from misusing the platforms. With KYI due diligence the investor is evaluated at different times to ensure the right person is accessing the investor profile.

Associated Shareholders Of The Investor

The KYI service checks for the customer’s background for all their association with any other investors or businesses. This assessment of shareholders provides the major information about the investors to filter out the real and fake investment entities.

Online Investor Verification

The KYC check is implemented as per the law of the AML and CFT act to protect the platforms according to Shufti Pro Funding. The investor verification using KYI carries the same processes and regulations. With the introduction of online investor verification on digital platforms, clients are verified right from their smartphones and personal computers, thanks to new technologies of automation. 


A hot revenue-generating market is always a great concern for the shareholders and investors as they are exposed to various risks and threats associated with the digital platforms. The fraudsters are always on the verge of getting something out of every platform with multiple techniques upon their sleeve to launder money and steal user identities. The KYI check is implemented to verify the investor before any investment onboarding process. The online service is also used for user verification which is fast and responsive as it uses new tools for the identity and document verification of the investor.

Read More : 5 Reasons to Consider Becoming a Mortgage Investor

Related Articles

Back to top button