Prepaid Card Fraud Prevention - A Case Study
14 December 2009 Background
Payment Card Solutions provide a full suite of technology and process solutions for prepaid card schemes. They have been in operation for over three years and have their own brand - The Bread Card and clients including The Daily Star and ClearDebt group.
The challenge
The prepaid market currently has a huge following within the unbanked sector and this poses challenges for identity checking. As part of the Money Laundering Regulations new customers need to be fully verified and card schemes need to ensure they have verification procedures in place.
Payment Card Solutions needed an anti-fraud and compliance solution that they could quickly and easily integrate via XML into their existing technology solutions.
The solution
Payment Card Solutions needed a solution that provided them with high match rates and ensured they were complying with KYC/AML regulations. With over 2,000 new customers a month they needed a fast and fully integrated verification solution.
“We were using a different identity verification supplier before integrating 192business into our technology solutions and found that 192business’ match rates were far superior. The depth of the information makes checking even easier and 192business are a highly flexible company who are a pleasure to work with.”
There are a few fraudulent and money laundering techniques that Payment Card Solutions have witnessed and move swiftly to close loopholes as they are detected. For example they would find that individuals would load their prepaid cards with cash and then immediately take this out at a cashpoint which was obviously quite suspect. Or else cardholders would use the cards on trains where there are no real time balance verification checks in place by retailers.
The future
Payment Card Solutions realise the importance of sharing fraudulent data and have future plans to upload their data so that they can reciprocally share suspected and reported fraud attacks. They already find that fraudsters will set up prepaid accounts with different names but often new accounts may share the same emails and telephone numbers.
The lure of global markets is also on Payment Card Solution’s agenda. With credit reference data available for Germany, Sweden and the USA, they can be confident about extending their global reach and still carry out robust KYC checks.
Reader Comments (1)