Fraud prevention is a set of measures put in place to protect a company’s assets and ensure its security and will generally involve performing Customer Due Diligence (CDD) in order to identify if an individual has been involved in any suspicious or potentially suspicious activity. Under the BSA, all financial institutions must complete CDD on all new clients; if they give false information or attempt to use someone else's identity, the CDD process will expose this. To stay compliant, financial institutions must continue to monitor all customers so that if their status changes their risk to the business can be reassessed.
The most reliable and efficient way for financial institutions to put robust fraud prevention procedures in place is to use an electronic verification platform like Smart Search. SmartSearch performs full AML checks with Sanctions and PEP screening, automatically triggering enhanced due diligence on any matches. It will also continue to monitor all customers on an ongoing basis. The system has robust anti-fraud measures in place, including a highly advanced risk assessment process.