Fraud Risks

• Chargeback Fraud
  • Clients disputing legitimate charges after receiving services
• Identity Theft
  • Unauthorized use of payment information for fraudulent transactions
• Employee Theft
  • Staff misappropriating funds or stealing from client properties
• Service Misrepresentation
  • Overstating capabilities or results, leading to client dissatisfaction
• Unlicensed Operations
  • Businesses operating without proper licenses or insurance

Regulatory Challenges

• PCI DSS Compliance
  • Ensuring secure handling of payment card data
• Labor Laws
  • Compliance with wage regulations, worker classification, and benefits
• OSHA Regulations
  • Adherence to safety protocols to protect employees and clients
• Environmental Regulations
  • Proper disposal of chemicals and adherence to eco-friendly practices
• Tax Compliance
  • Accurate reporting and remittance of sales taxes and payroll taxes

Chargeback Triggers

• Service Quality Disputes
  • Claims that services were inadequate or not performed as agreed
• Unauthorized Transactions
  • Charges not recognized by the cardholder
• Billing Errors
  • Incorrect charges, duplicate transactions, or unexpected fees
• Contractual Disagreements
  • Conflicts over terms, cancellations, or additional charges
• Non-Delivery of Services
  • Allegations that scheduled services were not provided

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• High-Value Transactions from New Clients
  • Significant payments without prior relationship or due diligence
• Multiple Payments from the Same Card
  • One card used for different client accounts or services
• Unusual Payment Patterns
  • Overpayments followed by requests for refunds to different accounts
• Inconsistent Client Information
  • Discrepancies between billing details and service addresses
• Reluctance to Sign Contracts
  • Avoidance of formal agreements or documentation

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Business Verification

• Confirm valid business licenses, permits, and insurance policies
• Verify physical address, contact information, and service areas
• Check for industry certifications or memberships in professional associations
• Review company history, ownership, and any legal filings

Financial Assessment

• Review financial statements for stability and profitability
• Analyze average transaction sizes and monthly processing volumes
• Assess the impact of seasonal fluctuations on revenue

Risk Evaluation

• Examine historical chargeback ratios and dispute reasons
• Evaluate fraud prevention strategies and employee screening processes
• Review client agreements, cancellation policies, and dispute resolution procedures

Policy Review

• Ensure clear, accessible terms and conditions for services
• Verify transparent refund, cancellation, and modification policies
• Evaluate compliance with data protection and privacy laws

Technology Assessment

• Confirm use of secure, updated payment processing systems
• Ensure implementation of encryption and tokenization for data security
• Verify adherence to PCI DSS and other relevant security standards

Reputation Analysis

• Check online reviews and ratings on platforms like Yelp and Google
• Investigate any history of complaints with the Better Business Bureau
• Assess responsiveness to client feedback and issue resolution

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• Frequent Chargebacks Post-Service
  • A pattern of clients disputing charges after services may indicate quality issues or fraudulent activity
• Sudden Surge in High-Value Contracts
  • An unexpected increase in large contracts from new clients could signal potential fraud
• Employee Misconduct Reports
  • Incidents of theft or damage at client sites can lead to reputational and financial risks
• Inconsistent Billing Practices
  • Discrepancies between quoted prices and final charges without justification
• Operating Without Insurance
  • Lack of liability insurance increases risk exposure for both the merchant and clients

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Business Operations

• What specific cleaning and maintenance services do you offer?
• Do you serve residential, commercial, or industrial clients?
• How many years have you been in operation?

Payment Processing Methods

• What forms of payment do you accept from clients?
• Do you offer recurring billing options for ongoing services?
• How do you manage invoicing and payment collection?

Fraud Prevention Measures

• What processes are in place to verify client identities and service requests?
• How do you protect client payment information and personal data?
• Do you conduct background checks on employees?

Regulatory Compliance

• Are you compliant with PCI DSS and data security standards?
• How do you ensure adherence to labor and environmental regulations?
• Do you maintain necessary licenses, permits, and insurance coverage?

Billing and Refund Policies

• What are your policies regarding cancellations, refunds, and service changes?
• How are these policies communicated to clients?
• Do you have a formal process for handling disputes and chargebacks?

Customer Service

• What channels are available for client support and communication?
• How do you handle complaints or service issues?
• Do you offer any satisfaction guarantees or warranties?

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Transaction Monitoring

• Implement real-time alerts for suspicious activities
• Regularly review transactions for anomalies or fraud patterns
• Monitor for unusual spikes in chargebacks or refund requests

Compliance Checks

• Ensure ongoing adherence to PCI DSS and regulatory requirements
• Stay informed about changes in laws affecting labor, safety, and environmental practices
• Conduct periodic audits of payment systems and data handling procedures

Security Updates

• Keep all software and payment systems updated with the latest security patches
• Utilize advanced security measures like encryption and multi-factor authentication
• Provide regular training to employees on data security and fraud prevention

Merchant Communication

• Maintain open lines of communication about any changes in services or policies
• Offer resources and guidance on best practices for compliance and risk management
• Encourage prompt reporting of any suspicious activities or security concerns

Risk Assessment Adjustments

• Reassess risk profiles based on changes in transaction patterns or business operations
• Update underwriting policies to reflect new risks or industry developments
• Monitor economic and market trends that could impact the sector

Customer Feedback Analysis

• Monitor online reviews and social media for client feedback
• Address negative comments swiftly to improve customer satisfaction
• Use feedback to identify areas for service improvement or risk mitigation

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