Advanced fraud reduction
Build Security into Your Payments Journey
At Zūm Rails, cybersecurity and fraud mitigation is not just about protecting against threats. It’s about building a secure foundation for our users and their business operations in order to maintain customer trust, ensure regulatory compliance, and establish long-term growth and stability. In the ever-evolving digital landscape, Zūm Rails’ built-in advanced fraud reduction features prioritize these aspects and ensure every payment processed has the highest level of protection.
Multiple Layers of Advanced Cybersecurity Features
Zūm Rails’ multi-faceted approach ensures the highest level of security and accuracy in every financial transaction. Our advanced cybersecurity features create a frictionless customer experience while simultaneously identifying suspicious activity, safeguarding financial data and reducing the risk of fraud before it happens.
- Validate all Know Your Customer (KYC) details and banking information, confirming account holder identities and accuracy of banking details to prevent fraud and ensure regulatory compliance
- Real-time balance monitoring prevents overdrafts and ensures smooth transactions
- Name matching further secures transactions by comparing the name on the card with the account records to prevent synthetic identities and unauthorized transactions, reducing chargebacks and financial losses
- The penny test, conducted in real-time, verifies account authenticity by requiring users to confirm a small deposit, safeguarding against impersonation fraud
- 3D Secure 2.0 provides dynamic, risk-based authentication for online card transactions, enhancing user experience while mitigating fraud
- Sanction screening, which cross-references transaction data against sanction lists to block illicit activities, creates a robust defense against fraud, ensuring secure and compliant online transactions
Validate During Onboarding
To ensure the highest level of security and accuracy in financial transactions, Zūm Rails software offers a tool to validate all Know Your Customer (KYC) details, and banking information, through the onboarding process before debiting an account, as well offers a way to connect a bank account and check account balance to reduce NSFs. This comprehensive approach involves verifying the account holder’s identity through data aggregation, which helps prevent fraudulent activities and ensures compliance with regulatory standards. Additionally, confirming the accuracy of banking information, such as account numbers and bank routing details, minimizes the risk of transaction errors. Having real-time balances is essential to guarantee sufficient funds are available, thus avoiding overdrafts and ensuring smooth, uninterrupted transactions. By implementing these measures, businesses can safeguard against fraud, enhance transaction accuracy, and maintain customer trust.
Built-in Name Matching Protection
Name matching is a critical step in the payment verification process, involving the comparison of the name on the card with the name on file in the customer’s account records. This essential practice helps to detect and prevent the use of synthetic identities, which have traceability of funds, which are fabricated combinations of real and fake information used for fraudulent purposes. By confirming that the names match, businesses can significantly reduce the likelihood of unauthorized transactions and identity theft. Moreover, this validation step plays a crucial role in eliminating chargebacks, which occur when customers dispute a transaction. Chargebacks not only lead to financial losses but also impact merchant reputation and incur additional processing fees. By ensuring accurate name matching, businesses can maintain a secure transaction environment, build customer trust, and protect their revenue streams.
Penny Testing Upon Connection
At Zūm Rails, security and trust are integral to every payment journey. Our innovative Penny Testing method offers real-time validation for Visa Direct, combining accuracy and fraud prevention with a seamless user experience.
A $0.01 deposit to a Visa debit card is validated in real-time through open banking aggregation. If found, the card is verified, along with the account holder’s identity. If the transaction is not found, the card is not validated, reducing the potential for fraudulent activity.
This method provides real-time accuracy in confirming card ownership while enhancing the customer experience with a frictionless process. By verifying account details instantly, businesses can prevent synthetic identities, reduce the risk of impersonation fraud, and ensure compliance. At the same time, the insights gained enable smarter decision-making and help streamline workflows. Penny Testing is more than a validation tool—it’s a safeguard that protects your business while maintaining customer trust.
Stay Secure at any Level of Risk with 3D Secure 2.0 & Sanction Screening
3D Secure 2.0 is an advanced authentication protocol designed to provide an additional layer of security for online card transactions. Unlike its predecessor, 3D Secure 2.0 offers a smoother and more seamless user experience by leveraging risk-based authentication. This means that it assesses various risk factors, such as the customer’s device, transaction history, and behavioral patterns, to determine the level of authentication required. For low-risk transactions, the process is frictionless, requiring minimal input from the user. However, for higher-risk transactions, additional verification steps are added to the process to mitigate any potential threats. This dynamic approach significantly reduces the likelihood of fraudulent activities while maintaining a positive user experience.
Sanction screening is another critical component in the fight against fraud. This process involves cross-referencing transaction data and customer information against various sanction lists, such as those maintained by governments, international organizations, and financial regulatory bodies. By doing so, businesses can identify and block transactions involving individuals, entities, or countries that are subject to sanctions. This not only helps in preventing fraudulent transactions but also ensures compliance with international laws and regulations, thereby avoiding potential legal and financial repercussions.
Combining 3D Secure 2.0 with sanction screening Zūm Rails creates a robust defense mechanism against fraud. While 3D Secure 2.0 focuses on authenticating the identity of the cardholder during the transaction process, sanction screening ensures that the parties involved are not on any watchlists or engaged in illicit activities. This dual approach enhances the security and integrity of online transactions, protecting both businesses and customers from the risks associated with fraud and non-compliance.
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