Fraud Prevention Policy

Our comprehensive approach to detecting, deterring, and preventing fraudulent activities

Paymit Limited

Zero-Tolerance Fraud Policy

At Paymit, we are committed to detecting, deterring, and preventing fraudulent activities that could compromise the integrity of our payment services. Fraud remains a significant challenge within the financial services sector, and as a regulated entity, Paymit implements robust measures to mitigate risks and safeguard customers, employees, and partners.

Last Updated: December 2024 | Policy Version: 2024.1

1. Introduction

At Paymit, we are committed to detecting, deterring, and preventing fraudulent activities that could compromise the integrity of our payment services. Fraud remains a significant challenge within the financial services sector, and as a regulated entity, Paymit implements robust measures to mitigate risks and safeguard customers, employees, and partners.

Fraud can occur in multiple ways, including deceptive schemes targeting consumers or attempts to exploit Paymit's systems for illicit gains. This policy outlines the common fraud typologies that Paymit encounters and the security measures implemented to prevent fraudulent transactions.

2. Statement of Intent

Zero-Tolerance Policy

Paymit Ltd adopts a zero-tolerance policy towards fraud. All employees, customers, and partners must uphold honesty, transparency, and accountability.

This policy ensures that:

Proactive Detection

Fraudulent activities are identified and mitigated proactively.

Customer Protection

Customers are protected from financial crime.

Regulatory Compliance

Internal processes are aligned with UK regulatory obligations.

3. Responsibilities in Fraud Prevention

At Paymit Ltd, fraud prevention is a collective responsibility that involves senior management, the Money Laundering Reporting Officer (MLRO), and all employees. Each level of the organization plays a crucial role in ensuring fraud risks are mitigated effectively.

Legislative Framework

This policy adheres to the following laws and regulations governing financial crime and fraud prevention:

  • Fraud Act 2006
  • Bribery Act 2010
  • Money Laundering Regulations (MLR) 2017
  • Proceeds of Crime Act 2002
  • General Data Protection Regulation (GDPR) and Data Protection Act 2018
  • FCA and HMRC Regulatory Framework
4. Fraud Definition & Categories

Fraud Definition

Fraud is defined as an intentional act of deception to secure an unfair or unlawful financial gain.

Fraud Categories Include:

Theft

Unauthorized appropriation of funds or assets.

Identity Theft

Using stolen personal information for fraudulent transactions.

False Accounting

Manipulating financial records for deceitful purposes.

Bribery & Corruption

Unlawful financial incentives to influence decisions.

Conspiracy to Defraud

Coordinated fraudulent activities by multiple parties.

5. Types of Fraud & Prevention Measures

6. Fraud Reporting & Response

Customers and employees are encouraged to report any suspicious activity via Paymit's fraud reporting channels. Paymit will:

1. Investigate & Block

Suspicious transactions are reviewed by the compliance team and blocked if necessary.

2. Report to Authorities

Any fraud involving criminal activity is reported to Action Fraud. For vulnerable consumers or where there is a suspicion that a fraudster may be collecting funds in the UK, this will also be reported to the National Crime Agency (NCA).

3. Take Legal Action

Paymit reserves the right to take legal action against fraudsters, including terminating accounts found engaging in fraud.

Contact Us

For any fraud-related concerns or to report suspicious activity, please contact our security team immediately.

Email: security@paymit.co.uk | Address: 85 Great Portland Street, First Floor, London, England, W1W 7LT

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