Fraud and risk detection

welcome to cross river fraud detection services (fds) digital transactions are always getting more complex this exposes merchant partners—our customers—to greater risk ensuring the security and trust of our customers and their cardholders is always cross river’s top priority therefore, cross river designed its fraud detection services to protect online card payments our aim is to provide our partners with peace of mind while they conduct digital transactions key services these are the key services making up the cross river fraud prevention strategy token validation service (tvs) tokenization is a powerful security measure tokenization replaces sensitive card data with unique security tokens cross river tvs ensures that the token used in a transaction is authentic and hasn't been tampered with this reduces the risk of data breaches that’s because the actual card details remain stored in way that’s secure ofac (office of foreign assets control) compliance ofac makes sure that card payment transactions comply with the law cross river ofac screening apis check transactions against the ofac list that list contains sanctioned people and organizations, meaning, those not allowed to make transactions in the united states ofac screening is proactive it identifies and prevents financial interactions with restricted entities through ofac, cross river maintains the integrity of transactions taking place in its banking ecosystem fraud and risk detection /#address verification avs (avs) avs plays a key role in stopping fraudulent card payments from happening during a transaction, the consumer provides a billing address they do this through the merchant’s website avs checks that address’s accuracy against the address that’s in the hands of the card issuer by confirming this information across systems, cross river can detect mismatches instantly those differences could indicate a possible unauthorized transaction fraud and risk detection /#account name inquiry ani (ani) service ani confirms that the account holder's name is the same one listed at the issuing bank this provides an added layer of checking this check is important because it helps identify mismatches between the cardholder's name and the transaction details here too, those differences could indicate a fraud attempt fraud and risk detection /#card validation value cvv2 (cvv2) cvv2 offers extra defense against unapproved card usage the cvv2 is a three (or four ) digit code that code appears on the back of a payment card when buying something with their payment card, the consumer has to enter this code into the merchant’s website as the merchant acquiring bank, cross river forwards this code to the card network then, the network can get payment approval from the cardholder’s bank cvv2 ensures that the person making the transaction physically has the card as a result, no one needs to rely on card information that might have been stolen address verification (avs) during card payment transactions, address verification service (avs) checks the validity of the billing address that the cardholder provided avs plays a key role in cross river’s efforts to prevent fraud and ensure transaction security this simple yet powerful tool strengthens security, helping keep transactions safe as a fraud detection measure, avs helps make cross river’s entire ecosystem a safe environment for its merchant partners importance of avs when customers transact online, the card is not visible to the merchant by confirming card details with the issuing bank online, we can detect possible fraud activity we can also find out if it's likely the transaction is unauthorized avs helps protect consumers, our merchant partners, and cross river how avs works when a customer enters their billing address, cross river sends it to the card issuing bank the issuing bank, in turn, compare the address with the one they have on file if the address is a match, the transaction proceeds smoothly however, if there is a mismatch, this could be a sign of potential fraud note that non matching avs responses will not decline a transaction automatically that’s because there could be a few valid reasons for the mismatch for example, the consumer may have mixed up digits in the zip code ultimately, it is up to the merchant to decide whether to accept the transaction they make this decision based on avs results as well as other key data the results of checking avs are held in the add a card (post api) function call this call contains the following key attribute as part of its response addressverfied (true/false) if the merchant isn't configured for the avs service, contact your cross river relationship manager for details on how to connect to avs key benefits of avs prevent fraud catch suspicious activities early, preventing fraudulent transactions from occurring protect customers ensure that transactions are authorized, protecting consumers from unauthorized charges save costs detect fraud before it happens this saves money and prevents losses for everyone involved in the card payments process ensure trust consumers trust their merchant sites a lot more when they know their acquiring bank is working to keep transactions secure promote efficiency automate the verification process this makes transactions go more smoothly for legitimate consumers account name inquiry (ani) the ani service matches and verifies the name of an account holder it checks whether the name on file at the issuing bank is the same as the one the consumer provides during a transaction this happens in a way that is similar to address verification (avs) ani is vital for ensuring secure and accurate card payments importance of ani similar to avs, ani strengthens security, minimizes fraud risk, and maintains the accuracy of transactions this helps create a safe payment experience that consumers, merchant partners, and card issuers can trust ani also helps check for ineligible transactions for example, a cardholder requesting earned wage access via push to card may have given an incorrect name this could indicate that the cardholder provided card details do not really belong to the cardholder how ani works cross river always initiates an ani verification transaction during card authorization this step is essential before making any aft or oct request this compares if the names that the transaction initiator provided match the data held by the card issuing bank if a card issuer doesn't yet support the ani service, the merchant gets a response code this code indicates that the cardholder's name is unverified because their card issuing bank doesn't support ani the results of checking ani are held in the add a card (post api) function call this call contains the following key attribute as part of its response nameverificationused indicates whether cross river tried to contact the ani service this attribute value will also let you know if the merchant isn't configured for the ani service in that case, we recommend contacting your cross river relationship manager for details on how to connect to ani nameverificationresult indicates whether the initiator provided card details match fully, partially, or not at all, or if they are unknown key benefits of ani enhance security adds extra security by verifying the account holder's identity prevent fraud detects unauthorized transactions in real time, preventing the loss of money build customer trust verifies account details before problems occur ensure accuracy reduces errors in transactions by ensuring the person making the transaction is the real account holder comply with standards meets security and verification standards for payment transactions, such as kyc, aml, poa, and so forth card validation value (cvv2) the card validation value 2 (cvv2) service provides a critical security layer in card payments cross river provides cvv2 validation to ensure safer credit and debit card transactions cvv2 is a unique 3 digit (or in the case of amex 4 digit) code printed on the back of all cards during online transactions where the card isn’t physically present, cvv2 helps authenticate the cardholder it does this by making sure the cardholder has the card with them at the time they are initiating the transaction this deters fraud it also increases cardholder confidence when consumers make online purchases or card payments importance of cvv2 cvv2 confirms that the person using a card physically has the card the cvv2 appears only on the back of the actual card and in the issuing bank’s files it doesn’t exist anywhere else this way, requiring the cvv2 code adds an extra level of protection against unauthorized transactions initiated from stolen card credentials how cvv2 works? when a consumer makes an online or phone transaction, the merchant requires them to provide the cvv2 code the merchant provides this code as part of the transaction data sent to cross river the card issuing bank, in turn, checks that the cvv2 code the consumer enters matches the code on record then, the issuing bank returns a match or mismatch response finally, cross river provides this matching response to the merchant note that card issuers may still approve transactions with mismatched cvv2 codes it is the merchant’s responsibility to consider the matching data when deciding if to proceed with the transaction key benefits of cvv2 stronger security cvv2 protects transactions by requiring the unique code for verification deterring fraud cvv2 discourages unauthorized users from trying to make transactions that are not allowed card not present protection cvv2 isn’t stored electronically or magnetically this way, it protects online and phone transactions it does this by requiring a code that only the cardholder should know consumer confidence consumers feel more secure using their cards knowing cvv2 is available and being enforced by merchants and banks reduced fraud costs preventing fraud prevents loss of money for everyone involved in the payment chain this holds true for the consumer, merchant, and bank