Fraud, laundering, and other financial crimes are rampant in the 21st century. Security isn’t just a big concern to you, it’s a big concern for your payees.
The danger isn’t only to your payees’ funds – there’s also danger to their personal information. When large amounts of personal data are stored in one place, it could become a high-risk data breach for your entire organization.
To protect your payees’ money and identities, your mass payments platform needs at least these seven basic security measures in place.
7 Security Must-Haves for Your Mass Payments Platform
1. Bank Secrecy Act/Anti-Money Laundering Program
Adopted by the Bank Secrecy Act and the US Patriot Act, a BSA/AML program helps prevent, detect, and report potential money laundering activity.
2. Customer Identification Program
A CIP collects and verifies customer information as part of the Know Your Customer (KYC) enrollment process. This should compliment a stringent data protection process.
3. Data Protection
To protect account holder information, your mass payments platform should have security policies and procedures for comprehensive data protection.
For highest security, all personal identity information (PII) should be stored in the secured platform and only retrieved when needed within secure communication channels.
4. Office of Foreign Assets Control Screening Process
An OFAC screening process allows banks to designate and block suspicious parties and transactions.
5. Suspicious Activity Reporting Process
An SAR process indicates your mass payments provider will quickly report any unusual activity to the Financial Crimes Enforcement Network (FinCEN).
6. Customer Notification Procedures
Your platform should have customer notification procedures in case of program and regulatory changes. Proper notification procedures quickly notify you and your payees of any changes.
7. Real-Time Transaction Monitoring
Real-time transaction monitoring means your payments platform immediately identifies potentially fraudulent transactions. Once suspicious activity is identified, the account is disabled automatically to protect your and your distributors’ funds.
If Payees Don’t Trust You, You Could Lose Their Business
While cyber and financial crime are not your fault, you could be responsible for the consequences if your workers’ information is compromised. Those consequences include legal action, reputational damage, and – of course – loss of business.
Be smart and safe from the start, and make sure your mass payments platform offers at least these basic securities.