Fraud and AML glossary
Use these pages when you need a precise definition, then follow the product CTA for the Naiza API that implements the workflow.
What is AML screening?
AML screening checks customers, businesses, and counterparties against sanctions, PEP, and watchlists so teams can review possible matches.
Sanctions Screening: What It Means
Sanctions screening checks people and organizations against official restricted-party lists before onboarding or moving funds.
PEP Screening and PEP Checks Explained
PEP screening identifies politically exposed persons and related parties so teams can apply enhanced due diligence instead of an automatic block.
Device Fingerprinting: What It Means
Device fingerprinting builds a stable identifier from browser or app signals so fraud teams can recognize returning devices, multi-accounting, and account takeover.
Velocity Check in Fraud Detection
A velocity check counts how often an identifier acts inside a time window so teams can catch card testing, credential stuffing, and burst fraud.
What is account takeover (ATO)?
Account takeover is when an attacker uses stolen credentials or session tokens to use a legitimate account. Detect it with device, velocity, and login-event signals.
What is KYC (Know Your Customer)?
KYC collects and verifies customer identity. Naiza connects that identity to watchlist screening at onboarding and throughout the customer relationship.
What is customer due diligence (CDD)?
Customer due diligence is the risk-based process of identifying a customer, screening them, and deciding how much ongoing monitoring they need.
Enhanced Due Diligence (EDD) Meaning
Enhanced due diligence adds evidence and investigation for higher-risk customers such as PEPs. Naiza supplies match context and event history for review.
Adverse Media Screening Meaning
Adverse media adds negative-news context to customer due diligence. Naiza provides structured adverse-media entries alongside sanctions and PEP screening.
What is chargeback fraud?
Chargeback fraud is a disputed payment that may be friendly fraud or stolen-card use. Prevent it with event context, device signals, and review trails.
What is card testing?
Card testing is burst authorization of stolen card numbers, usually for small amounts. Catch it with velocity rules on BIN, device, and IP.
What is transaction monitoring?
Transaction monitoring evaluates payments and transfers for suspicious behavior. Naiza supports full transaction monitoring with AML rules, counterparty screening, alerts, investigation cases, and SAR reporting workflows.
Watchlist Screening: What It Means
Watchlist screening compares a customer or entity to sanctions, PEP, and other restricted-party lists, then routes possible matches into review.
OFAC Screening: What It Means
OFAC screening checks names against U.S. Office of Foreign Assets Control lists. It is one sanctions list family inside a broader AML screening workflow.
What is KYB (Know Your Business)?
Know Your Business collects and verifies company identity. Naiza connects that identity to AML watchlist screening for entities and beneficial owners.
What is fuzzy matching in AML screening?
Fuzzy matching finds watchlist names that are close but not identical—transliteration, missing middle names, or typos—so you catch possible matches without requiring an exact string.
Ongoing Screening and AML Monitoring
Ongoing monitoring re-screens customers when watchlists change, instead of checking a name only at onboarding. It is how programs catch someone listed after they became a customer.
What is multi-accounting fraud?
Multi-accounting is when one person or device opens many product accounts to abuse bonuses, evade limits, or hide mule activity. Device intelligence is the usual detection signal.
What is credential stuffing?
Credential stuffing uses stolen username and password pairs in automated login attempts. Naiza evaluates login velocity, device context, and IP reputation to identify the attack.
Promo Abuse: What It Is
Promo abuse is farming sign-up bonuses, referral credits, or coupons with many accounts or stolen cards. Catch it with signup velocity, device linking, and payment-instrument reuse.
What is first-party fraud?
First-party fraud is when the legitimate account holder disputes a real purchase or misuses a product (friendly fraud, bonus abuse). It is not account takeover.
What is a money mule?
Money mules move funds on behalf of others through customer accounts. Naiza combines payout velocity, device links, and counterparty screening to support detection and investigation.
What is IP reputation?
IP reputation identifies datacenter, VPN, proxy, and known-abusive addresses. Naiza combines IP context with device intelligence, customer history, and velocity rules.
What is VPN detection in fraud prevention?
VPN detection flags when an event likely comes through a virtual private network or proxy. Use it as a REVIEW signal with device context, not as a blanket block.
What is risk scoring in fraud detection?
Risk scoring ranks how suspicious an event looks so operations can order the REVIEW queue. The decision contract should still be ALLOW, REVIEW, or BLOCK with an explainable reason.
What is a false positive in fraud and AML?
A false positive is a REVIEW or BLOCK that a later investigation clears. Measure it before you tighten velocity, fuzzy matching, or denylists.
What is email reputation in fraud prevention?
Email reputation identifies disposable addresses, new domains, and past abuse. Naiza combines email, device, and activity signals to detect risky signups.
What is signup fraud?
Signup fraud is fake or farmed registrations used for bonuses, mule accounts, or card testing. Catch it with device linking, email reputation, and registration velocity.
What is payout fraud?
Payout fraud is abuse of withdrawals and disbursements—ATO cash-out, mule pass-through, or bonus extraction. Score the payout event with device, velocity, and counterparty screening.
What is device linking?
Device linking connects one fingerprint to many customer accounts so you can see multi-accounting, mule farms, and shared ATO tooling.
What is name transliteration in AML screening?
Name transliteration maps Arabic and other scripts to Latin (and back) so watchlist matching can still fire when spelling systems differ.
What is batch AML screening?
Batch screening checks many names in one job—migrations, overnight list deltas, or backfills. Pair it with real-time checks at onboarding and payout.
What is list management in fraud prevention?
List management is how you persist allowlists and denylists of customers, devices, emails, and IPs so later events fail closed or skip noisy rules.