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Navigating the Complexity of ownership from the lens of Sanction by Extension
Mitigating Business verification complexity with The KYB in MENA Region
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Corporate KYC: Helping Businesses Ensure Compliance & Mitigate Risk
Corporate Screening – Mitigating Fraud Risks Across Industries
A Comprehensive Guide to Business Verification in the Crypto Industry
Identify UBOs Across Diverse Industries with KYB Solutions
Why must Banks Implement Know Your Business (KYB) in Business Onboarding?
Role of Business Verification in International Payment Gateways
KYB for Global Operations: How to Create Cross-Border Business Verification?
Onboard businesses with our swift KYB verification.
Expand globally without facing non-compliance challenges
Identify high-risk corporate clients while uncovering UBOs
Mitigate the risk of onboarding a shell company.
Partner with trusted companies and beneficial owners
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Mitigating Business Verification Complexity with The KYB in MENA Region
Business Activity Codes: An Instant Way to Classify Companies?
Business Registration Lookup: Verify Legitimacy of Organizations
How Does Document Retrieval Service Help in Business Verification?
How to Verify a Company in Italy? An Ultimate Guide
How to Verify a Company in the Netherlands? An Ultimate Guide
How to Do Business Background Check in 2024?
Know Your Vendor: Helping Businesses Reevaluate Partnerships
Why Sanctions Screening Matters for Businesses in 2024?
What is Financial Crime Compliance? A Complete 2024 Guide
What is A Front Company? A Comprehensive Guide
BOI Reporting: Mitigating Non-Compliance Challenges in Corporate World
The Essential Sanctions Compliance Guide for Businesses
Behind Closed Doors: Can Corporate Fraud Undermine Your Business?
Top 5 Signs Indicating Trade-Based Money Laundering
What is Corporate Compliance? A Comprehensive 2024 Guide
Industry Expert Answer How to Check If A Company Is Legit?
3 AML Experts Answer How to Verify Ultimate Beneficial Owner (UBO) Amidst Its Challenges
Current State Of Business Verification In South Korea
5 Major RegTech Trends & How Companies Can Leverage Them for Benefits
Dirty Money in Paradise? Dubai Leaks Triggers Ownership Concerns in Real Estate Sector
Current State of Business Verification in India
How to Verify a Company in France? An Ultimate Guide?
How to Verify a Company in Japan? An Ultimate Guide
How to Verify a Business in Germany: An Ultimate Guide
New AML Screening Feature in The KYB Streamlines Corporate Compliance
Current State of Business Verification in Australia
Current State of Business Verification in Canada
How to Verify a Company in Bahrain? An Ultimate Guide
Who’s Pulling the Strings? Unveiling Persons with Significant Control
Adverse Media Screening: A Way Forward to Uncover Hidden Business Risks
Is Your Business Safe? Unmask the Hidden Risk Through KYB Checks
What is E-KYB? A Comprehensive 2024 Guide
The KYB Appoints Mark Bain as the New Chief Executive Officer
Business KYC Guide: Managing Risk & Verifying Companies
How to Ensure KYB Verification in South Africa? A Comprehensive Guide
Business Address Verification: Securing Companies Onboarding Process
How to Collect & Verify Beneficial Owner’s Information for Compliance
What is Corporate Due Diligence? What Every Business Needs to Know
How to Save Your Company from Business Identity Theft in 2024?
In-Depth Guide on Merchant Onboarding: How it Works and Best Practices
Business Verification Trends & Challenges in 2024
Shell Companies: A Significant Threat for Businesses Worldwide
Mapping Risks And Challenges of KYB in the MENA Region
How to Ensure Fraud Prevention with Effective Business Verification?
What is Third Party Due Diligence? A Comprehensive Guide to Combat Risk
The INFORM Consumers Act: Ensuring Legitimacy of the Ecommerce Sector
The KYB Expands its Reach to 250+ Countries – Offering B2B Verification Globally
What is Enhanced Due Diligence? A Comprehensive Guide
Business Verification: Navigating the Path to Ensure Company Legitimacy
Canada’s Financial Authority Imposes $7.4m Fine on Royal Bank of Canada
A Guide to Business Verification for Owners in 2024
The KYB Introduces Enhanced Fraud Prevention Solution to Help Businesses Combat Shell Company Partnerships
US Announces Enforcement Actions to Regulate Cryptocurrency Businesses
A Comprehensive Guide to AML Risk Assessment and its Importance for Businesses in 2023
KYB Compliance – Detecting and Preventing Fraud in Cross-Border Payments
Turkey Purposes New Rigid Regulations to Register Crypto Businesses
Fraud Awareness Week – What it is and Why is it Important?
Top 4 Ways to Reduce Chargeback Claims
UK Discloses Final Proposal to Regulate Crypto Trading Businesses
How to Verify the Legitimacy of a Business Using KYB Compliance Solutions
Role of KYB Verification in Gaming and Gambling – A Comprehensive Guide
Turkey Plans to Introduce Strict Regulations to Secure Crypto Businesses
5 Reasons Your Business is Spending Too Much Money on KYB Checks
FATF Endorses Latest AML Regulations in the Final Plenary Meeting
A Comprehensive Guide to the Accredited Investor Verification Process
The KYB Successfully Attains CCPA Certification | Representing Exemplary Data Privacy Protocols
CySEC Warns Non-AML Compliant Cyprus Investment Firms
The KYB | Building Trust Among Businesses Through KYB Verification
FinCEN Intends to Utilize Digital Streaming Platforms to Spread Beneficial Ownership Reporting Measures
A Step-by-Step Guide to Effortless and Legitimate Corporate Onboarding
European Union Introduces MiCA Laws to Regulate Opaque Crypto Firms
UK Law Society Ensures Solicitors Complying With AML Measures
A Comprehensive Guide to KYB Regulations in the USA
Expected KYB Verification Trends in 2024: A Detailed Insight
Kenya Takes Over Leadership of the Eastern and Southern African Anti-Money Laundering Group
US Charges Chinese Companies to Leverage Crypto For Illicit Activities
Qatar Commercial Bank Harnessing Digital Platforms To Foster Innovations in Financial Sector
Sanctions and PEP Screening: Ensuring Compliance with KYB Regulations
Streamline Business Operations and KYB Onboarding Processes
EBA Reveals Final Date to Comply with Remote Customer Onboarding Regulations
Deutsche Bank Pledges Taking Convenient Steps to Rebuild Trust on Postbank’s Services
KYB and Fraud Prevention: Safeguarding Your Business
CFATF Successfully Concludes 4th Round Mutual Evaluation of Guyana
H1’23 Recap: Know Your Business and Anti-Money Laundering Fines Worldwide
A Comprehensive Guide to UK AML and KYB Regulations and Complexities
CFTC Crackdown on DeFi Platforms for Noncompliance with Trading Regulations
Adequate KYB Verification Service for Seamless Business Onboarding
Spotify Becomes the Hub of Money Laundering for Scammers in Sweden
The Ultimate Guide to Business Verification (KYB)
Citigroup Agrees to Pay $2.9m Fine on Shortcomings in Record-Keeping Regulations
Unleash the Potential of Your Business with KYB Checks
The Comprehensive Guide to Ultimate Beneficial Owner (UBO)
Building Trust in Business Relationships: Leveraging Know Your Business Services
Digital KYB Checks: Simplifying Verification for SMEs in 2023
Financial Firms Under Investigation for Money Laundering in Singapore
From Compliance to Confidence: The Role of KYB in Compliance
Driving Growth and Security in 2023 with KYB Verification Services
KYB and KYC: Exploring the Differences and Similarities
Leveraging KYB for Enhanced Due Diligence in Business Onboarding
KYB Best Practices: Steps to Ensure Effective Business Verification
10 Reasons Know Your Business Services are Essential for Modern Enterprises
AI-Powered Know Your Business: Unveiling the Hidden Potential of KYB Due Diligence
Stay Ahead of the Game: Harnessing Know Your Business Verification Services for Competitive Advantage
The Ultimate Guide to Know Your Business Services: A Comprehensive Overview
Unlocking the Power of Know Your Business – Enhancing Trust and Mitigating Risk
A trio is accused of stealing $1.5 million from a woman who was seeking Australian citizenship
The importance of KYB solutions in Streamlined business operations
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API Integration
The KYB Developers Hub
We are excited to empower developers with all the information needed to utilize the full potential of our API. This comprehensive documentation serves as a guide to seamlessly integrate our API into applications, unlocking a world of possibilities.
Featured Knowledgebases
What is KYB?
KYB stands for Know Your Business, which is a due diligence process that companies use to verify the identity and legitimacy of their business partners or customers.
16 October, 2023
People prefer to invest in a company that offers services or products to generate profits. However, shady stockbrokers invest clients’ money in imaginary firms with the intention of stealing it. Afterward, they find fresh investors to use their money for distributing “returns” to earlier investors through a practice called the Ponzi scheme.
A Ponzi scheme is a tactic used by scammers to commit investment fraud, recruiting individuals to invest in firms that do not exist. The criminal steals all the money after solidifying the investment. Then, the scammers hire new investors and use their investments to pay off earlier ones to make it sound like they are generating profits for initial investors.
The practice was named after Charles Ponzi, an Italian businessman who pulled off an infamous and very large scheme in 1920. The Italian businessman did it by establishing a shell investment firm supposedly centered on purchasing international postal vouchers in Europe and exchanging them for higher-priced US postage stamps. Although this practice (known as arbitrage) was not illegal, falsely claiming that his firm was doing it—and instead using funds of new investors to pay off the initial ones—was a crime. Bernie Madoff carried out the largest Ponzi scheme in history that deceived thousands of investors and caused them to lose billions of dollars.
To commit a financial Ponzi scam, criminals first convince individuals to invest in an enterprise that is fake. They usually promise the investors to generate high profits with little risk and this very reason is enough to attract the target (investors). Scammers also make stories and provide forged documentation to make it appear like a legitimate business for an individual to invest in.
After stealing the initial investments, the criminals create an illusion for the investors that they are getting profits. Scammers use the same tactic with other individuals to convince them to invest and then use those funds to pay off the initial investors, pocketing an extra portion for themselves. Criminals use sophisticated methods to make the business deal sound like a legitimate one, although it is not.
A Ponzi scam is a type of pyramid fraud, but there is a thin line of difference between both.
A Ponzi scheme usually relies on a single individual or group to enroll fresh investors to pay back the earlier ones. In this scheme, an investor makes a one-time investment and waits for the returns passively. However, the pyramid scheme offers incentives for investors to actively recruit new individuals into the scam. This involves letting investors collect “initiation charges” from the individuals they enroll, with a portion to be paid to the scheme organizers and previous investors.
With technological advancement, the Ponzi scheme has also changed. Scammers are becoming sophisticated in targeting investors to fulfill their illicit intentions. In case you become a victim of the Ponzi scheme, here is what to do to protect yourself:
Be cautious of “fraud recovery fraud” – this is when a scammer claims to be a legal professional or a police officer and offers to help Ponzi scheme victims regain their money. The scammer promises the victims to get their money back but by paying charges for the services they get from so-called legal professionals or police officers.
Read More: Anti Money Laundering
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