The Fraud and Compliance Management system applies a collection of rules, limits, and thresholds to identify suspect activity, and determine appropriate courses of action.

Traditional credit and debit card fraud processes generally combine two techniques for detecting fraud and complying with various laws and regulations:

• A front-end screening process based on personal credit score
• Back-end transaction processing and scoring

For some emerging payment solutions and card programs, such approaches cannot always be used because the issuer is not extending credit; therefore, credit scores are not applicable. Similarly, back-end transaction fraud detection strategies often rely on historical data to highlight out-of-character transactions, and the number of transactions associated with some accounts does not accumulate adequate transaction history for these tools to be effective. Therefore, the Fraud and Compliance Management system offers a selection of optional tools and services to either augment or replace traditional transaction fraud mitigation systems.

The Fraud and Compliance Management system offers a variety of tools to manage fraud and compliance risks not generally covered by transaction fraud mitigation systems.

These tools and services include:

• Rules, Limits, and Thresholds (a.k.a. Velocity Rules)
• Negative File Checking
• Sanctions Screening Service (e.g. OFAC SDN, PLC, Part 561, etc.)
• Customer Identification Screening (a.k.a. KYC & CIP)
• Prepaid Clearinghouse Service (PCS) File Delivery
• Case Management Services
• Transaction Fraud Prevention

These tools can be deployed by clients at the most critical points in the account or card lifecycle including enrollment, account maintenance, card replacements, transactions, withdrawals, card funding, etc.