Fraud Prevention

Last updated: February 2, 2026

Fraud Prevention & Data Protection

HIFI implements multiple layers of protection:

Compliance Controls

  • KYC/KYB Verification: All users must complete identity verification before accessing fiat rails

  • PEP Screening: Politically Exposed Persons screening by banking partners

  • Document Verification: Identity documents are reviewed and verified (passport, driver's license, ID card)

  • Proof of Address: Address verification through utility bills, bank statements, or lease agreements

Prohibited & High-Risk Industries

HIFI blocks or restricts certain industries to prevent fraud:

  • Prohibited: Pyramid schemes, gambling, "get rich quick" schemes, direct marketing telemarketing, door-to-door sales

  • High-Risk (requires Enhanced Due Diligence): Money services businesses, crowdfunding, prepaid cards, auction services

Transaction Controls

  • Transfer Approvals: Require admin approval before executing transfers

  • Beneficiary Name Matching: Payments may be rejected if beneficiary name doesn't match account holder

  • User Freezing: Accounts can be frozen (USER_FROZEN status) to prevent unauthorized access

  • Profile Freezing: Entire profiles can be frozen (PROFILE_FROZEN) when needed

Account Protection

  • Environment Separation: Distinct sandbox and production API keys

  • Webhook Signature Verification: JWT verification ensures webhook authenticity

  • Idempotency: Request IDs prevent duplicate transactions