1. Verification of Customer Identity:

The customer's identity is verified using the provided identification documents, such as a government-issued ID card or passport. The information on the identification document is compared to the details provided by the customer during the registration or transaction process.

2. Card Ownership Verification:

The business verifies the ownership of the cards involved in the transaction. This can be done by validating the card details provided by the customer and cross-checking them with the card issuer's records.

3. Risk-Based Analysis:

The transaction is subjected to a risk-based analysis, where specific risk indicators are assessed. This analysis helps determine the level of scrutiny required for the transaction based on factors like the transaction amount, customer history, and geographical location.

4. Transaction Monitoring:

The business employs advanced transaction monitoring systems that analyze various parameters, such as transaction amounts, frequency, and patterns, to identify any suspicious or unusual activities.

5. Verification of Transaction Authorization:

The customer may be required to provide additional authentication factors, such as a One-Time Password (OTP), secure code, or biometric verification, to authorize the transaction. This ensures that only the authorized cardholder can initiate and approve the transfer.

6. Anti-Fraud Systems and Machine Learning:

Advanced fraud detection systems powered by machine learning algorithms are employed to detect suspicious patterns, anomalies, and known fraud indicators. These systems continuously learn from historical data and industry-wide fraud patterns to enhance their accuracy.

7. Compliance with Regulatory Requirements:

The procedure ensures compliance with relevant regulatory requirements, including anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. The business conducts appropriate checks and reporting to fulfill its obligations in combating financial crimes.

8. Ongoing Monitoring and Review:

The transaction is continuously monitored, both in real-time and retrospectively, to detect any fraudulent activities or irregularities. The business maintains a robust system of internal controls and conducts periodic reviews to identify and mitigate potential risks.

9. Collaboration with Payment Networks and Authorities:

The business collaborates with payment networks, card issuers, and regulatory authorities to share information, identify emerging fraud trends, and ensure a coordinated effort to combat fraud effectively.

10. Staff Training and Awareness:

Employees involved in processing and monitoring transactions receive regular training on fraud prevention measures, detection techniques, and industry best practices. This ensures that they are equipped to identify and respond to potential fraud attempts.