of Fraudulent Transactions in Affiliated Merchants


The diversity and thriving evolution of e-commerce entails high risks: cyber-attacks, compromised information and malware creation, among others.

The increasingly lower profit margins derived from the competitive framework must be protected efficiently through fraud prevention, with versatile tools that deal with different business cornerstones, maintaining high approval levels in the authorization systems, with lower rejections for transactional risk and fraudulent operations.

Prevención de Fraude Adquirente


Sentinel monitors different channels: POS, Mobile POS, and e-Commerce, allowing the Acquirer to configure multiple analytical modules that detect unusual transactions and reduce fraud losses.

It grants the Acquirer the capabilities required to manage merchant risk, generating actions like point of sale blockage, payment blockage to the merchant or transaction blockage.

It helps the business by increasing the approval indices and chargeback reduction.

Fraud Prevention Solutions for Acquirer Payment Methods


  • Sentinel makes it possible to combine different tools to increase the effectiveness of fraud prevention, among them:
    • Models based on rules
    • Statistical behavior
    • Projected behavior
    • Base points
    • Predictive models (neural networks, deep learning, decision trees, support vector machines, among others)
    • Transactional risk
    • Geolocation profile
  • It projects the activity expected of merchants and identifies those with positive or negative variations in their invoicing and deposits
  • It monitors the base points of fraud of each merchant and allows the definition of alert thresholds. It generates manual or automatic blockages of businesses
  • It allows the analysis of points of compromise and points of consumption in accordance with the information replicated in Sentinel and the analysis of the user
  • It generates specialized reports and control charts
  • It generates payment blockages to affiliated merchants

Stages of Risk and Fraud Prevention Analysis Process




Case Management

Reports and Control Boards


Sentinel supports management of risks associated with the merchant onboarding process.

Restrictive Lists: It helps determine if those associated with the merchant (representatives, shareholders, employees, among others) are in black lists, PEP lists, negative news, the OFAC list, and 450 other global lists.

Merchant Risk: It helps determine the risk entailed by the merchant to establish a due diligence or an enhanced due diligence process, and to manage the control parameters from a fraud perspective.

Relationships Analysis: Through this analysis, it is possible to determine undisclosed relationships between the merchant in process of formalization and the entire base of Acquirers of the Institution, as well as with merchants, representatives, shareholders, and elements that characterize it (directors, telephones, others) that were considered to be undesirable in the past.


With the beginning of merchant operations and transactions towards the authorization system, Sentinel establishes a new prevention approach that focuses more on transactions, response times, and preventive actions, completely on line. The system has several features in this area:

  • Real Time Models: It is the first and most immediate line of defense to stop fraud. It offers the capacity to block transactions, as in the case of authorizations and reversals realized in a very short period of time.
  • Geolocation: The geographic location of transactions makes it possible to determine the profile of the merchant and the consumption profile of its customers for online shopping.
  • Merchant Risk: Based on the risk posed by the merchant, more stringent fraud prevention strategies can be defined.
  • Retention: Through the projected behavior, it is possible to determine the merchants that have shown reduction in their business activity, so that the business areas may perform a review.

Rule Models and Statistical Behavior: They help to analyze unusual merchant behaviors to generate alerts and trigger automatic processes to mitigate risk. The analysts have a consultation feature or viewer to see the unusual activity with multiple inputs useful for the decision-making process:

  • Screener by date range
  • Alert objective
  • Screener by alert status
  • Advanced screener
  • Transaction assessment scores
  • Behavior profile
  • Models that generate alerts in transactions

Predictive Models: They add an additional sophistication level to the analysis of unusual merchant behavior, which includes technologies like neural networks, deep learning, decision trees, and others.

Expert Risk Score: It allows including in the system a risk matrix to assign a score to each transaction, based on the information contained, such as the MCC, amount, time, country of origin, etc.


The prevention and detection models generate alerts of unusual transactions that can be managed by the user of the system:

  • The investigators analyze unusual activity and determine if the creation of an investigation/case is required
  • The analysts and supervisors can have strategic control of the entire operation of the fraud prevention department, observing the following major indicators:
    a. Pending alerts
    b. Average response time
    c. Alerts marked as fraud
    d. Alerts referred to an investigation
    e. Alert resolution timeframes
    f. Goal fulfillment

Case Management

Investigation of cases makes it possible to track the entire process of unusual activity management of the merchant:

  • Change in the investigation status
  • Actions performed by the analyst
  • Detail of the transactions to be investigated
  • Storage of attached files relevant to the case
  • Presentation of a graphic view of the case history, called a “timeline”

It offers a control chart of pending investigations:

  • Average investigation response time
  • Number of investigations dealt with in the working day

Reports and Control Boards

It is a powerful tool for data discovery and information analysis. Its main characteristic is that it is oriented to end users without significant technical knowledge, who can design their own reports and control charts, schedule their execution, and automaticaly send to different recipients, if desired.

  • It has several pre-determined reports
  • It allows the end user to create reports using the different Sentinel data sources and fields
  • The reports can be private or public so that the users can access them
  • Each field format can be customized based on the data type
  • Possibility to generate groups, screeners, field organization, and definition of date ranges, to show the information
  • Scheduled report execution and automatic sending of e-mails
  • Capacity to export the reports in multiple formats, including Excel, CSV, PDF


  • We will respond to your inquiries as quickly as possible. Write today.
  • This field is for validation purposes and should be left unchanged.
© 2020 SmartSoft. All rights reserved.