Risk and compliance professionals are looking for more proactive ways to monitor their business customer portfolios so they can detect risky behavior before it impacts their organizations. Increasingly banks, payment processors and other financial institutions are recognizing the value of monitoring their business customers’ reputations in the form of consumer complaints and adverse media, since declining reputation can be a signal of fraud, questionable business practices and other anti-consumer behavior. With the volume of complaints and news on the rise, as well as the increase in online sources of this information, reputation has become a valuable input to sound Know Your Customer (KYC) practices.
This white paper discusses the rise of the Consumer Financial Protection Bureau (CFPB) over the past five years in response to violations of consumer protection in the financial services industry, reviews consent orders and highlights reputation signals that can prevent fraud. It also provides best practices and tools to help create a robust reputation monitoring program that will enhance BSA/AML compliance.