Maintaining a secure, trustworthy, and fraud-free environment is a cornerstone of Dappr’s mission. We are dedicated to protecting our platform and our legitimate users from fraudulent activities through a comprehensive and proactive approach.
This article outlines our zero-tolerance policy on fraud, the types of activities we prohibit, and the robust measures we take to detect, investigate, and combat fraudulent behavior.
Our proactive KYC/KYB measures
Unlike many other formation services, Dappr integrates financial services like payment processing and business financial accounts directly into our platform. This requires a higher standard of identity verification to protect our ecosystem and comply with regulations.
Our robust Know Your Customer (KYC) and Know Your Business (KYB) processes are the first line of defense. Before we submit any formation paperwork to state authorities, the company's founder (organizer) is required to complete a thorough identity verification process. In certain cases, we may also require:
Additional address verification documents.
A video conference meeting with the founder to confirm their identity and business intent.
These measures are crucial for preventing illicit businesses from gaining access to the powerful financial tools on our platform.
Prohibited activities
Dappr strictly prohibits any form of fraudulent behavior. Engaging in such activities will result in immediate action, including account suspension, termination, and reporting to law enforcement. Prohibited activities include, but are not limited to:
Fraudulent Disputes: Knowingly making card payments for goods or services and then falsely disputing the transactions as unauthorized to receive an illegitimate chargeback.
ACH Direct Debit Fraud: Abusing the ACH system by authorizing payments and later disputing them under false pretenses.
Check Deposit Fraud: Depositing fraudulent checks or checks that are unlikely to be honored by the issuing bank.
Invoicing and Payment Misuse: Using Dappr's invoicing and payment tools to send unauthorized charges to unsuspecting victims.
Illicit Business Formation: Establishing a business on Dappr with the primary intention of using it as a front to perpetrate fraud.
Our process for fraud prevention
Dappr has a multi-layered process to detect, investigate, and resolve fraudulent activities.
1. Advanced Monitoring
Our platform uses cutting-edge monitoring tools to continuously analyze transaction patterns and user behavior for anomalies that may indicate fraud. This includes flagging unusual activities like sudden spikes in transaction volume, abnormally high dispute rates, or irregular account behavior.
2. Comprehensive Investigation
When suspicious activity is detected, our expert team initiates a comprehensive investigation. We scrutinize transaction histories, communication logs, and other data to determine the legitimacy of the activity. If our preliminary findings raise significant concerns, we take immediate action by freezing the implicated accounts to prevent further potential harm.
3. Transparent Communication
Users connected to suspicious activities are promptly notified and given an opportunity to respond. This ensures that genuine users are not unduly penalized while allowing us to maintain a firm stance against confirmed fraudulent actors.
4. Collaboration with Law Enforcement
Where fraud is confirmed, Dappr does not hesitate to involve law enforcement. We collaborate closely with relevant authorities, including the FBI’s Cyber Crimes Division, to report financial fraud and cybercrimes, providing them with the necessary information to pursue legal action.
5. Legal Action and Prevention
Dappr is proactive in pursuing legal action against those who commit fraud on our platform. Concurrently, we continuously work to refine our security measures and fraud detection capabilities to prevent future incidents.
How you can help
Your vigilance is a key part of keeping the Dappr ecosystem safe. We strongly encourage you to report any suspicious activity to our team immediately. We take every report seriously and will launch a thorough investigation.
To report a case of suspicious activity or fraud, please send a detailed email to [email protected] or start a chat with us at dappr.com.