Introduction to Fraud Check
The PAYMENT.ORDER (PO) application is an integral part of the Temenos Payment Solution in the Temenos Temenos Transact Core Banking suite. This can invoke fraud check on the orders during order processing. Fraud check is the process of checking the customer and order details in the restricted list (such as Office of Foreign Assets Control (OFAC)) to prevent fraud or perform Anti Money Laundering (AML) checks. It is initiated on all orders received in PO application from any electronic channels or manually captured in the PO application. This check can be enabled or disabled at business product level. For example, the user can configure fraud check on international payments but not on domestic payments products.
When enabled, the PO application prepares a fraud check request and sends it to the fraud engine. The request has standard set of fields from the order, as configured in Temenos Transact. However, additional attributes of the order can be sent after making necessary local development. The PO application further processes the order based on the responses received from the fraud check system. Following are the possible responses:
| Response | Description |
|---|---|
| Success | Order is processed forward. |
| Failed | Order is cancelled when the response indicates potential fraud. |
| Timeout | Timeout responses are taken positively or negatively based on the configuration in PO application. |
Invoking Fraud Check
After payment is received in PO and authorised:
- The fraud check request is sent to an engine (if configured). To know more on the invocation of fraud check activity in the processing flow, refer to PO application Basic Functions section.
- The request is held for the fraud check response by placing it in ‘Fraud Check’ status.
PO application receives the following responses from the fraud engine:
| Status | Description |
|---|---|
| Success | If the fraud engine does not identify any problem, it sends a Success response. The PO application updates the status to ‘Fraud Check Order Status Complete’ and Fraud Check Indicator to ‘Success’, and moves the order to the next state. |
| Fail | If the fraud engine identifies a potential fraud with the order sent, it sends a Fail response. The PO application updates the Order Status to ‘Fraud Check Failed’ and Fraud Check Indicator to ‘Failed’, and marks the Payment Order to ‘Cancel Order’. |
| Timeout | If an order is sent to fraud engine and a timeout response is received, PO application updates the Order Status to ‘Fraud Check Timeout’ and Fraud Check Indicator to ‘Timeout’. The PO application further processes or cancels the payment order based on the pre-defined configuration. |
Interfacing to Fraud Engine
The fraud engine can be a Temenos Transact module (Temenos screen) or third-party system. PO application can be integrated to external fraud engines based on the standard Temenos Transact Integration Framework (IF), using an ESB and a bank-specific ‘fraud routine’ attached to it. The routine defines the order data sent to fraud engine. This can be set specific to a Temenos Transact company, and hence, different routines can be attached to different companies for performing fraud check.
- A standard interfacing routine, when the fraud engine is Temenos screen.
- The API routine for all other engines to send the fraud check request to fraud engine, which is created at the project implementation level.
Parallel Processing
PO application can initiate a fraud check and simultaneously send the order for further processing to payment system, without waiting for the fraud check response. This feature helps to increase the speed of processing, especially during the process of instant payments.
TPH processes the payment and then moves it to awaiting queue until accounting and external payment generation. Based on the response from the fraud engine, the PO application intimates TPH on the status, and TPH releases or cancels the payment, accordingly.
Updating Fraud Check Indicator Manually
The PO application allows the user to manually update the status of the Fraud Check Indicator, when there is a temporary or permanent issue that leads to fraud engine failing to send a response. The possible statuses are available: Success, Failed or Timeout. The PO application processes the payment based on the response from the user. To know more, refer to Processing Description section.
Installing PO Application with Temenos Screen
PO application has pre-integrated interfaces with the Temenos Screen system, thus, does not require an integration activity during implementation.
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