In a prepaid card program, one of your largest risks is fraud. Fraud can turn a great program into a big money loser almost overnight.

And many program managers don’t do enough to help mitigate fraud.

Every day, there are bands of thieves looking to steal from your program at every opportunity. And what makes that even worse is that, generally speaking, there’s not a lot that you, as an independent program, can do about it.

Cascade FinTech helps to attack fraud for our clients anywhere we can.

Types of Prepaid Fraud

Our Fraud Mitigation programs start with understanding the different types of fraud that the “bad guys” attempt every day.

  • ID Theft: Online bandits attempt to create cards with fictitious names and stolen IDs.
  • Money Laundering: Prepaid programs create opportunities for laundering large sums of cash over dozens or hundreds of cards.
  • Load Fraud: Potential thieves will load money on your prepaid card, then dispute the load with their bank.
  • Spend Fraud: Potential thieves file illegitimate chargebacks on their purchases..
  • Fraud Run: Repeated occurrences of spend fraud can multiply the damage caused by a single criminal, network of criminals, or a stolen card sold to dozens or hundreds of people.

All of this makes Fraud Mitigation a more-than-full-time job. And at Cascade FinTech, we’ve invested heavily in our Fraud Mitigation Technology to help prevent fraud of all types and at every level.

Fraud Mitigation
Fraud Mitigation is a primary responsibility of a program manager. Our multi-layer fraud mitigation technology helps to keep your prepaid program in the black.

Who Pays for Fraud?

Who pays for card program fraud? In a nutshell, you do.

While all program managers are responsible for helping to mitigate fraud, when fraud happens, you — the client — bear the cost.

That is why it is so important to work with a program manager that helps to aggressively and intelligently mitigate fraud at every opportunity. And that’s why you should work with Cascade FinTech.

Prepaid Fraud Mitigation at Cascade FinTech

Our suite of Fraud Mitigation tools, algorithms and procedures help to control and prevent fraud attempts at every step of the process. Few program managers focus on fraud the way we do.

ID Theft Mitigation

Our aggressive identity verification systems, including our progressive “waterfall” process of ID Verification, out-of-wallet, and ID scanning, help to catch fraud before it even starts.

Money Laundering Mitigation

We’ve invested hundreds of thousands of dollars to comply with the Anti-Money Laundering and Bank Security Act (AML/BSA) to help prevent money laundering activity on your program. All of our employees are AML/BSA trained. We handle all AML/BSA requirements for all of our Program Management clients so you don’t have to.

Load Fraud Mitigation

Consumers automatically win ACH disputes, so prevention must begin before the load ever happens. That’s why we do our Load Fraud Mitigation work as soon as a new bank account is linked. We automatically verify accounts using an intelligent data layer that simplifies ACH authentication with the 16 largest banks in the US (which covers 85% of all accounts in the US). Using our technology, we instantly verify account ownership and check balances in real-time to improve the ACH processing from end-to-end. Then we continue to monitor ACH patterns, emphasizing transactions for new accounts.

Spend Fraud Mitigation

Spend Fraud is one of the most prevalent risks facing a prepaid card program. That is why our three-layer approach is so effective. It begins with pre-authorization systems that combine real-time data analytics and pattern recognition to catch trending fraud types (even by merchant type). Our post-authorization fraud detection system detects and reveals fraudulent spending patterns. Then we put every transaction through our own proprietary algorithms for an extra layer of protection.

Fraud Run

Occasional fraud is a normal part of any business, especially one dealing with prepaid cards. And any smart company is going to recognize that. But it’s a fraud run that can cause the most damage. That is why Cascade FinTech has proprietary algorithms and procedures in place to detect and immediately stop a fraud run.

Finding the Balance

The only way to catch 100% of all fraud is to decline all but the most trusted transactions. But having too aggressive a fraud detection scheme will result in far too many false positive declines. That leads to three very major problems: increased customer service issues, decreased customer satisfaction, and decreased customer spending.

And none of that is good for your program.

That is why, instead of an overly aggressive fraud mitigation program, we have a more intelligent fraud mitigation program.

And we know that the result is going to be a more successful prepaid program for you. (We even have a prepaid program that guarantees your profit.)

Want more details? Or do you just want to talk about starting a new program, or moving your existing program to Cascade FinTech? Then Email or Call us now.

Want more details? Or do you just want to talk about starting a new program, or moving your existing program to Cascade FinTech? Then Contact us or Call us now.