Risk Management & Fraud Prevention

Purpose

This document describes the risk checks and fraud prevention controls implemented by VEMRE to protect customers, contractors, banking partners, and payment processors.

Risk Governance

A designated Compliance/Risk Officer oversees risk assessments, fraud monitoring, chargeback management, and policy enforcement.

Transaction Risk Checks

• Velocity checks (multiple transactions in a short period)
• Large transaction review
• Duplicate payment detection
• Unusual spending pattern detection
• Excessive refunds or disputes monitoring
• Manual review of high-risk transactions

Device & Network Checks

• IP address monitoring
• Device fingerprinting where available
• VPN/proxy detection where available
• Geolocation consistency review

Contractor Risk Controls

• Identity verification before onboarding
• Bank account verification
• Performance monitoring
• Complaint and dispute tracking
• Suspension/removal for repeated policy violations

Fraud Prevention Controls

• Real-time transaction monitoring
• Chargeback trend analysis
• Customer authentication measures
• Manual investigation of flagged activity
• Temporary account restrictions during investigations

High-Risk Indicators

• Rapid movement of funds
• Structuring or repeated small transactions
• Multiple cards used by one customer
• High-risk jurisdictions
• Repeated failed verification attempts
• Excessive chargebacks or refund requests

Escalation Process

Flagged transactions are reviewed by the Risk/Compliance Officer. Additional documentation may be requested. Transactions may be approved, declined, refunded, delayed, or accounts restricted based on investigation findings.

Record Retention

Risk reviews, fraud investigations, transaction logs, and dispute documentation are retained for at least five (5) years or longer if required by law or contractual obligations.