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Overview

The Industry Activity Check analyzes a business’s operational patterns, industry-specific activities, and compliance with sector regulations. This check helps identify businesses that may be operating outside their stated industry or engaging in unusual activity patterns.

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What It Checks

This check examines:
  • Industry Classification: Verifies the business operates within its stated industry
  • Activity Patterns: Analyzes typical business activities and transaction patterns
  • Sector Compliance: Checks for industry-specific regulatory compliance
  • Business Operations: Reviews operational indicators and business model consistency
  • Market Presence: Evaluates the business’s presence and reputation within its industry

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Key Indicators

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Industry Alignment

  • Match between stated industry and actual operations
  • Consistency with typical industry business models
  • Presence in relevant industry directories and associations

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Activity Verification

  • Transaction patterns consistent with industry norms
  • Operational indicators match business type
  • Seasonal or cyclical patterns align with industry expectations

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Compliance Signals

  • Required licenses and permits for the industry
  • Adherence to industry-specific regulations
  • Membership in relevant trade organizations

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Risk Factors

The check may flag concerns if:
  • Business operations don’t match stated industry
  • Activity patterns are inconsistent with industry norms
  • Missing required industry-specific licenses or permits
  • No verifiable presence in industry networks or directories
  • Operations span multiple unrelated industries without explanation

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Data Sources

This check may utilize:
  • Industry classification databases (NAICS, SIC codes)
  • Trade association memberships
  • Industry-specific regulatory databases
  • Business registration and licensing records
  • Market research and industry reports

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Use Cases

Common applications include:
  • Risk Assessment: Identify businesses operating outside their stated purpose
  • Compliance Verification: Ensure industry-specific regulatory compliance
  • Fraud Prevention: Detect businesses misrepresenting their industry
  • Due Diligence: Verify legitimate business operations in stated sector
  • Onboarding: Screen new businesses for industry alignment

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Example Results

{
  "check_id": "industry_activity_check",
  "status": "completed",
  "risk_level": "low",
  "result": {
    "industry_alignment": "verified",
    "primary_industry": "Software Development",
    "naics_code": "541511",
    "activity_consistency": "high",
    "industry_indicators": [
      {
        "indicator": "Software company registration",
        "status": "verified"
      },
      {
        "indicator": "Tech industry association membership",
        "status": "verified"
      },
      {
        "indicator": "Typical SaaS business model",
        "status": "confirmed"
      }
    ],
    "compliance_status": "compliant",
    "confidence_score": 95
  }
}

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Initial Response

{
  "id": "job-abc123",
  "status": "PENDING",
  "created_at": "2024-02-15T10:30:00Z",
  "updated_at": "2024-02-15T10:30:00Z",
  "agent_id": "public-bdd",
  "input_payload": {
    // Original request payload
  }
}

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Retrieving Check Results

Once the job is complete, retrieve the results using the job ID with the getJobByID endpoint. Make sure to include the include_check_results=true parameter to get the full check results. 
GET https://api.parcha.ai/api/v1/getJobByID?job_id=job-abc123&include_check_results=true

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Best Practices

When using this check:
  1. Combine with Other Checks: Use alongside business profile and web presence checks for comprehensive verification
  2. Industry Context: Consider industry-specific norms and variations
  3. Review Flags: Investigate any industry misalignment or activity concerns
  4. Regular Updates: Re-run periodically as business activities may evolve
  5. Documentation: Maintain records of industry verification for compliance purposes

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Configuration

This check can be configured with:
  • Industry Focus: Specify industries requiring additional scrutiny
  • Compliance Requirements: Define industry-specific compliance checks
  • Risk Thresholds: Customize risk scoring based on your requirements
  • Data Sources: Select preferred industry verification databases