Know Your Customer
Bad actors are always trying to do bad things, which is why it’s crucial for debit and prepaid program managers to improve methods for reducing fraud and crime continually. Our debit and prepaid CIP program is just one part of our security program to help ensure your program runs profitably and uneventfully.
What is a Debit or Prepaid CIP program?
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).
CIP is comprised of various processes, which includes a process called "Know Your Customer" (KYC), which verifies your customer's ID thoroughly. KYC references public data to determine if the information provided by an applicant can be verified automatically. If the person can not be approved using this process, they are manually reviewed. This manual process is known as IDentification Verification (IDV), which is the verification of an ID to determine a person's identity.
Additionally, 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. If the individual is a positive OFAC match, we report them to the issuer responsible for reporting to the authorities. Cascade will also deny the individual's enrollment.
There are specific activities that flag criminal behavior, and through proper monitoring, those activities can be identified. The perpetrators of these activities get stopped quickly, minimizing theft, fraud, and damage to your program. Cascade's Customer Advocacy Team 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 by 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 signal 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 essential 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. 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 that includes our progressive “waterfall” process of enhanced KYC, 2-Factor Authentication (2FA), and IDV. All of this helps to ensure your customer is whom they say they are, to protect you, them and your program, against ID theft and fraud.
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Cascade 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 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.