Bad guys are always trying to do bad things, which is why it’s so important for debit and prepaid program managers to constantly be improving methods for reducing fraud and crime. Our debit and prepaid CIP program is just one part of our security program to help make sure your program runs profitably and uneventfully.
What is a Debit or Prepaid CIP program?
In an effort to combat money laundering and terrorism financing, the federal government enacted the USA PATRIOT Act, which requires financial institutions, including debit and prepaid program managers to verify and record information that identifies each person who opens a card account. This program is known as the Customer Identification Program (CIP).
The CIP includes various processes, including IDentification Verification (IDV) which -- as the name implies -- is the verification of an ID to determine someone’s identity. It also includes a process called Know Your Customer (KYC), which more thoroughly verifies the ID of your customer by referencing public information to determine if the information entered by an applicant can be validated in an automated manner.
Also, as part of the CIP, we conduct OFAC background checks, named for the federal government’s Office of Foreign Assets Control. Individuals on government terrorism watchlists must be cross-checked, identified and reported by debit and prepaid program managers.
There are certain activities that flag criminal behavior and through proper monitoring, those activities can be identified and the perpetrators stopped, minimizing theft, fraud, and damage to your program. And Cascade FinTech handles it all for you.
With a long list of activities that criminals use to cover their tracks, financial institutions must monitor the types and frequency of transactions on the accounts they manage, looking for certain behaviors that are known to be associated with criminal activity. For example, frequent large cash loads to a prepaid card that are then transferred to another bank account or pulled back out of the account at an ATM is a sign of money laundering. Moreover, frequent, large sums of money being sent to international locations could be a signal of terrorist funding.
Government regulators have established rules as to what types of activities need to be monitored and reported. Our experienced fraud team watches for any suspicious card activity because safeguarding your program is important to us.
Preventing ID Theft
ID theft is everywhere and is at the core of fraudulent activity on an account. Protecting your customers’ identity is of the utmost importance to Cascade FinTech and we do all we can through our fraud mitigation programs to ensure your customers’ personal information is securely protected. Our debit and prepaid CIP Program is an aggressive identity verification system, which includes our progressive “waterfall” process of enhanced KYC, out-of-wallet questions, and IDV. All of this help to ensure your customer is who he says he is to protect you and them (and your program) against ID theft and fraud.
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Cascade FinTech works hard to make sure your prepaid program is successful. Reducing fraud through our debit and prepaid CIP program is a big part of that. That’s why Cascade FinTech complies with all CIP regulations on all of its programs. You can rest assured that you and your customers are protected while your debit or prepaid program continues to grow. Talk with one of our program experts to learn more. Call 702-745-3065 or contact us today.