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Case study

3 automated solutions in 1 API to solve global KYB, KYC, compliance and fraud defense

Thursday 23 May 2019 | 08:58 AM CET

4Stop`s highlights on merchant onboarding, automated KYC and fraud prevention capabilities, the appropriate tools to tap into compliance and security

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 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.

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.

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).

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 EUR 2.5 million investment from Ventech (a pan-European VC fund investing in early-stage tech-driven startups), our company aims to speed up future developments by expanding our KYB, KYC, compliance and anti-fraud technology. “We believe 4Stop has only begun to realize its great potential and is well on its way to turning the burden of compliance into a driver of business operations excellence in the payment & fintech industry; Ventech is thrilled to partner with 4Stop in their next chapter. We look forward to leveraging our broad and strong investment expertise and 20+ years of experience internationalizing of early-stage companies,” – Ventech Principal Stephan Wirries

About 4Stop

4Stop, a leading fraud prevention provider solves businesses risk-based approach through a modern, all-in-one KYC, compliance and anti-fraud solution. Based in Germany and founded in 2016, 4Stop’s global compliance and risk management platform brings together their proprietary real-time anti-fraud technology with over 1800 active global premium data sources, in a single integration. 4Stop’s technology creates an unrivalled combination that allows businesses to confidently anticipate risk and to be empowered to make well-informed decisions, backed by quantifiable data to manage regulatory obligations that will accelerate their business performance. 4Stop has been developed with a full understanding of compliance needs — locally and globally, today and in the future.

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