Sardine

Checking a user identity before a payment isn't about one data source. It's about as many as possible, without friction as fast as possible. Easy in principle. Hard in practice. That's where our effort and energy goes. Make everything more efficient, faster, AND more effective.

🎁 Feature drop: Account to validation and verification. Validation helps you match an account to a name for ACH payments or setups. Verification can be used to check if a user has funds (to prevent NSF risk) for ACH payments. We’ve made that instant. With unbeatable coverage. Verification uses bank routing and account numbers to check if the account and name matches and if it is in good standing.

Disconnected efforts to detect and prevent scams allow fraudsters to repeat tactics according to the Federal Reserve. The solution? Information sharing. The same fraud and scam patterns are happening at multiple banks, Fintech companies and merchants. Without information sharing, the best techniques to solve these problems go unnoticed, and unused. Better information sharing enables visibility into emerging scam threats, patterns and tactics. It would enable better analysis and more effective preventative measures. This is why we continue to double down on Sonar We’ve seen already in our work with sponsor banks, Fintech companies, payments companies and merchants that we can solve this visibility gap. We’re now in pilot phases with some of the largest financial institutions, and already seeing significant results.

🎁 Feature drop: Expert shortcuts. CMD+K or CTRL+K to find anything is now a default in the Sardine dashboard. Whether you need to pull up case, transaction or user profile information, you can now get there faster. The tools you use every day need to save you time and effort. The hard part shouldn’t be finding and analyzing the data. It should be figuring out *what happened* with this case / user / data, and what rules you should do to resolve. At Sardine, everything we do is about speed. Move faster than fraud or financial crime with us

We can't solve scams with reimbursement. In a recent senate hearing, Senator Richard Blumenthal has called for an expansion of the Electronic Funds Transfer Act to require payment networks to reimburse scam victims. The Senators and many consumer advocates argue that amending EFTA's regulation E to include reimbursement for "authorized" payments (when a user has been tricked or socially engineered into scamming). While it's clear scam volumes are skyrocketing and the consumer harm is real, creating a reimbursement framework potentially makes scams MORE of an issue not LESS. As we see with chargebacks, friendly fraud, and first-party fraud are now the #1 issue. It's far easier to simply claim a payment was unauthorized, even if the user did it 100% on purpose. The only possible way to solve this is before the payment occurs. And the only way to solve that is to understand who the recipient of a payment is. If your organization has never seen the recipient before you can't do that as a bank, wallet or Fintech company. You need a cross-industry utility like Sonar

Build sophisticated rules, back-test them, and push them to production in real time. Without engineering support. All from the dashboard with no or low-code. Novo's Matt Vega loves how quickly this can all happen in Sardine

How can we 10x the effectiveness of a BSA/AML program without 10x the headcount? Take transaction monitoring. We add: 👉 Continuous traffic monitoring: to identify real-time control gaps on 100% of the user population. 👉 Effectiveness Dashboards: Access to dashboards for real-time oversight without manual work 👉 Automated Machine learned oversight: of BSA/AML effectiveness within institutions and their sponsored programs Many teams already operate like this. This is how we’ve built Effectiveness Testing into our Transaction Monitoring. If we become data-driven, we can be far more effective AND eliminate manual work. Then, we can truly build a 10x effective BSA/AML compliance program without a 10x headcount. This is the way. Our GM of Compliance, Krisan, wrote a great blog on this topic (link in comments). https://lnkd.in/eNZPSYep

How can partner and sponsor banks 10x compliance without 10x’ing headcount? 👇 Banking as a Service is a huge opportunity for banks to grow deposits and revenue through partnerships. The "Direct" model involves them owning the go-to-market and comes with three complications. 1. Data plumbing. How do you see all the data you need to as a bank? 2. Customizability. How do you ensure the 3rd parties fit your risk appetite? 3. Visibility. How do you have real-time oversight and reporting? 🐟🐟🐟 1. Sardine solves data plumbing: 👉 Bringing all the third-party programs into a single dashboard in real-time data. 👉 Bringing data from payment processors and KYC systems into one centralized hub 👉 Zero integration required. Just require their third-party programs like fintechs to integrate Sardine 🐟🐟🐟 2. Sardine solves data customizability: 👉 Mandate that all fintech programs follow a bank’s Customer Identification Program (CIP) rules configured in Sardine. 👉 Mandate all programs must follow a set of Transaction Monitoring rules in the Sardine dashboard. 🐟🐟🐟 Sardine solves data visibility: 👉 The bank or fintech working with us could request that the EDD queues are made visible to the bank. 👉 We provide the ability to securely share Unusual Activity Reports (UARs) between the fintech and the bank within our platform, and banks can e-file with FINCEN directly. 🐟🐟🐟 If you’re a partner bank, we’d love to show you how to 10x your compliance controls without 10x’ing your staff.

Here are the three reasons faster payments mean faster fraud 🐟 1. Traditional approaches to fraud fighting act after a transaction was authorized. With faster payments, we need real-time transaction fraud screening that happens even before the transaction is authorized. We also need to be able to perform large computations in real time, and traditional systems aren't built for this. 🐟 2. Traditional fraud fighting has been focused mostly on looking at transaction data. With the rise in faster payment scams, we now need to contextualize “how” the payment was being made as well. 🐟 3. Traditional approaches to fraud fighting don’t screen the counterparty. When we make an in-person payment over Zelle or CashApp, we know the person's identity. But at a distance, we need to know if the payment method matches the identity of the person we THINK we're paying. 🎯 Solutions? 1. Look at signals BEFORE the transaction: We’ve invested in our data engineering infrastructure to handle machine learning at scale within hundreds of milliseconds. 2. Look at signals OUTSIDE transaction data: e.g. Our Device Intelligence and Behavior Biometrics technology can screen if someone is being “remotely coached” over a Remove Access Tool while making the payment. 3. Data sharing: We’ve created a data-sharing consortium called Sonar to bring banks and fintechs together to create a “blocklist” of counterparty payment methods that should not be trusted. If you want to learn more, look to the sky for the Fish signal (get in touch).

⏪ Pre-auth is a key moment in time Everything that happens before a transaction is a critical signal. If a user copies and pastes their credentials, that could be a key sign of a credential-stuffing attack. Focussing on everything happening here (like bot detection, user device, and behavior) can deliver substantial bang for your buck.