Bellevue-based G2 Web Services has announced a new merchant investigation and monitoring solution that helps banks identify and manage high-risk merchants and third-party payment processors, a focus of the U.S. DOJ probe Operation Choke Point. Operation Choke Point aims to reduce illegal transactions by targeting banks as the gateway to the payment system, opening banks and their risk management processes up to intense scrutiny. The new G2 solution, KYC Governor, helps banks prevent processing payments for illegal and fraudulent businesses by identifying them before a transaction is even initiated. KYC Governor provides in-depth merchant and third-party payment processor due diligence, plus ongoing merchant risk, fraud and reputation monitoring.
“G2 Web Services built KYC Governor in response to the many cries for help we’ve received from our bank clients concerned about Operation Choke Point. KYC Governor enables banks to conduct better due diligence on their merchants, and to understand what their merchants and their TPPPs’ merchants are selling and their risk level,” said Ed Barton, President of G2 Web Services. “Clients particularly appreciate the ability to proactively identify merchants in 20+ high-risk categories outlined by the FDIC, including payday lending and telemarketing, and to monitor them accordingly.”
The G2 Web Services KYC Governor helps banks prevent boarding merchants outside of their risk tolerance and monitor merchants and TPPPs for risk, fraud and reputation, following KYC (Know Your Customer) and KYCC Operation Choke Point guidelines. At boarding, businesses are analyzed against the G2 Merchant Map, the most extensive database of merchant risk and fraud history, comprising ten years of data on thousands of parameters for millions of businesses. Then, banks receive a predictive risk score that factors in the merchant’s history of illegal activity, sale of high-risk goods in the past, connections with risky merchants, and other risk indicators. Once on board, KYC Governor alerts users when merchants begin offering illegal or non-compliant goods, engaging in fraud, and other high-risk activity such as deceptive marketing. Banks with TPPPs receive reports on their TPPPs’ merchants, providing greater transparency into third-party merchant relationships that open banks up to significant risk.
“The goal of KYC Governor is to reduce the fear and uncertainty banks are feeling from Operation Choke Point, and the fines and subpoenas that have come along with it,” Barton added. “The feedback from clients has been enthusiastic so far, and they are relieved to have KYC Governor in their risk management toolkit.”
About G2 Web Services
G2 Web Services is the leading global provider of merchant risk management solutions, including merchant due diligence, compliance, and fraud protection. G2 helps banks and payment service providers take on the appropriate level of merchant risk, while protecting against brand damage, illegal activity, and noncompliance assessments. G2 solutions include predicting merchant risk at boarding, monitoring merchants to ensure compliance with government and card network regulations, and protecting against fraud, among others.
For ten years, G2 Web Services has investigated, analyzed and linked data from millions of merchants, their risk history and relationships, building the G2 Merchant Map. The Map is the industry’s most extensive database of merchant risk and fraud, offering insight into merchant relationships, risk history and behavior that no one else can provide.
G2 is headquartered in Seattle, with offices in London and Shanghai, and hundreds of clients worldwide. Find G2 online at: www.g2webservices.com.
Publisher’s Note: Even though they are located in Bellevue, G2’s media release and website claims their headquarters are in Seattle. I’m sure there is a reason they are located in Bellevue and they should be proud of it!