Case Study:

3 Automated Solutions in 1 API to Solve Global KYB, KYC, Compliance and Fraud Defense.

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43 Automated Solutions in 1 API to Solve Global KYB, KYC, Compliance and Fraud Defense.
Article Published on May 23rd, 2019. View Article on The Paypers.

We all know doing business online is highly compromised by identity thefts, account fraud, data breaches and various payment fraud. In 2017, 6.64% of consumers became victims of identity fraud – an increase of over 1 million victims from the previous year. Not to mention, managing ongoing regulatory requirements has its own barrier of complexity per market or/and industry.

Online payment fraud will top USD 22 billion this year and as high as USD 48 billion by 2023. We should all be implementing smart anti-fraud technologies and an array of Know Your Customer (KYC) than what is just required for base-level fraud defense and compliance. Allowing us to obtain enhanced digital profiles and premium risk mitigation, ensures our merchants and their associated customers and transactions are optimally verified and secured. However, this process involves costs, development resources, inefficiencies to market, potential end-user friction, not to mention dealing with thousands upon thousands of data output.

Now thanks to 4Stop’s innovative all-in-one KYB, KYC, compliance and anti-fraud technology, we can solve global online risk mitigation with confidence and obtain 3 automated solutions from a single API. The technology was driven by more than 60-years of collective experience in the high-risk management industry and has been developed with a full understanding of compliance needs.


1. Automated Merchant Onboarding

4Stop’s Know Your Business (KYB) solution is fully automated and everything is retrieved through a simple activation process. Dealing with merchants of all types whether enterprise, high-risk or low-risk, in every market and region worldwide is effortless with cost and time to underwrite dramatically reduced.

We instantly obtain businesses website analysis, retrieval of registration documentation, credit reports and even KYC due-diligence on UBOs, Directors and Shareholders to be certain every merchant we onboard are right for our portfolio. In as quick as a few minutes we can obtain granular reports, analysis, risk scores and registry documentation all within a single case-file. Additionally, the system is configured to automatically manage ongoing re-checks and monitors merchants’ performance - ensuring they remain compliant.


2. Automated Global KYC

Enforcement of the EU’s Revised Payment Services Directive (PSD2) comes into effect this September. That’s just four months left to implement the principles behind Strong Customer Authentication (SCA). The increased authentication and security checks required by the mandate are calling for development resources, costs and managing KYC integrations.

With 4Stop we have access to hundreds of KYC data sources aggregated into a single API with on-demand activation. The best part, they do the ongoing KYC integrations, so we’re completely covered for compliance, regardless of its ongoing updates.

Secondly, our concerns surrounding demands on increasing authentication leading to friction at onboarding and loss of customer engagement is solved by 4Stop’s smart cascading KYC logic. The service enables an easy configuration of data sources per customer touch point, which are primary, secondary, and so on. The result is a frictionless KYC performance with the best data performance output, and the most cost-savings possible (proven 10.9% cost-savings for businesses within the first 2 months).


3. Automated Data-Centric Fraud Prevention

4Stop’s anti-fraud technology has a multi-faceted rules engine encompassing over 800+ pre-determined parameters and free-form scripting, where rule creation is endless and designed to meet the client’s needs. The product is able to set customised risk thresholds and rules based on merchant, region, date/time, market, payment method and so on, with automated system actions.

Through the platforms, a centralised global view of risk with real-time monitoring intelligence, customised dashboard experience, an array of agent tools, and reaction times are significantly improved and the overall business performance is accelerated. Businesses that have employed 4Stop’s anti-fraud technology experienced a 66.6% reduction in chargebacks in the first 2 months with an average of 81.5% approval authorization rate. Moreover, 4Stop has also been implemented by global payment and crypto leaders including Mifinity, Paymentz, Paysend, Gatehub, and Skalex.

With the recent €2.5 million EUR investment, our company aims to speed up future developments by expanding our KYB, KYC, compliance and anti-fraud technology.

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