This policy establishes the framework for preventing, detecting, and responding to fraud, financial crime, and potential money laundering risks that may arise through the ShopAurora platform.

1. Purpose

The objective of this policy is to:

• Protect customers, vendors, and the platform from fraudulent activity
• Maintain the integrity and trustworthiness of the ShopAurora ecosystem
• Align platform operations with applicable Ghanaian regulations and internationally recognized anti-financial-crime principles

ShopAurora operates as a technology platform and digital commerce infrastructure provider and does not function as a financial institution or payment processor. Payment transactions are processed by licensed third-party payment providers.

2. Scope

This policy applies to:

• All vendors operating storefronts on the ShopAurora platform
• Customers conducting transactions through the platform
• ShopAurora employees and contractors
• Payment service providers integrated with the platform
• Third-party technology or logistics partners interacting with platform operations

The policy governs:

• Vendor onboarding and identity verification
• Transaction monitoring
• Fraud detection processes
• Platform misuse and abuse prevention
• Incident investigation and enforcement procedures

3. Regulatory Context

ShopAurora operates as a digital commerce infrastructure platform facilitating transactions between independent vendors and customers.

The platform:

• Does not hold or custody customer funds
• Does not provide financial services
• Does not operate escrow systems or wallets

Payments are processed through licensed payment service providers such as Paystack. ShopAurora therefore implements risk-based fraud prevention and vendor identity verification measures while relying on regulated payment providers to perform financial transaction authorization and settlement.

4. Definitions

• Money Laundering: The process of concealing the origins of illegally obtained funds in order to make them appear legitimate.
• Fraud: Any intentional act of deception conducted to obtain financial gain or cause financial loss to users or the platform.
• Vendor: An independent third-party merchant operating a storefront through the ShopAurora platform.
• Chargeback: A payment reversal initiated by a customer through their financial institution following a disputed transaction.
• Suspicious Activity: Any behavior, transaction pattern, or platform usage indicating possible fraudulent, abusive, or illegal activity.

5. Risk Assessment

ShopAurora recognizes the following primary fraud and financial crime risks:

• Vendor Fraud: Fraudulent merchants listing fake products or misrepresenting goods.
• Payment Fraud: Use of stolen payment instruments or compromised accounts.
• Chargeback Abuse: Customers abusing payment reversal mechanisms.
• Account Takeover: Unauthorized access to vendor or customer accounts.
• Product Misrepresentation: Listing counterfeit or prohibited items.
• Platform Manipulation: Attempts to exploit refund mechanisms, payment flows, or commission structures.

6. Fraud Prevention Framework

ShopAurora adopts a multi-layered risk management approach that includes:

• Vendor verification procedures
• Transaction monitoring
• Operational review mechanisms
• Collaboration with licensed payment providers
• Clear enforcement policies and dispute procedures

7. Vendor Identity Verification (KYC)

To reduce the risk of fraudulent merchants, ShopAurora requires vendors to complete identity verification procedures prior to storefront activation.

Vendor verification may include:

• Full legal name or registered business name
• Valid email address and phone number
• Government-issued identification (e.g., Ghana Card or Passport)
• Bank account or mobile money details for payouts
• Business address or operational location

ShopAurora reserves the right to request additional verification documentation where risk indicators are identified. Vendor accounts may be rejected, suspended, or restricted where verification cannot be completed satisfactorily.

8. Transaction Monitoring

ShopAurora monitors platform activity to detect potential fraud or abusive patterns. Monitoring may include:

• Unusual transaction volumes or rapid sales spikes
• Repeated failed payment attempts
• High rates of refunds or chargebacks
• Repeated disputes associated with specific vendors
• Suspicious listing behavior or prohibited product categories

9. Suspicious Activity Review

Where suspicious activity is detected, ShopAurora may initiate a compliance review.

Investigations may involve:

• Analysis of vendor transaction history
• Review of user complaints and dispute patterns
• Verification of merchant identity documentation
• Collaboration with payment processors for transaction review

10. Payment Provider Collaboration

ShopAurora works closely with licensed payment service providers to strengthen fraud prevention. Payment providers may implement transaction risk scoring, card verification systems, and chargeback management processes. They maintain independent compliance frameworks and may independently block or investigate suspicious payments.

11. Enforcement Measures

Where violations are confirmed, ShopAurora may implement enforcement actions including:

• Temporary suspension of accounts
• Permanent termination of vendor access
• Removal of fraudulent listings
• Withholding of platform payouts where permitted
• Reporting of illegal activity to relevant authorities where required

12. Internal Governance and Access Controls

To minimize internal fraud risks, ShopAurora implements organizational safeguards including restricted administrative access, role-based access control, and activity logging. Employees and contractors must comply with all internal security and data protection policies.

13. Incident Reporting

Employees and contractors must report suspected fraud or suspicious activity to the Compliance Lead immediately. Reports should include a description of the behavior and relevant account/transaction identifiers.

14. Fraud Risk Scoring Model

ShopAurora implements a risk-based monitoring approach using a fraud risk scoring model that assesses:

• Vendor Risk Indicators: Newly created accounts with high activity, high-risk categories, linked accounts, etc.
• Transaction Risk Indicators: Spikes, same payment instrument used multiple times, failed attempts, large values.
• Customer Risk Indicators: Device/IP collisions, repeated refund/chargeback activity.

15. Fraud Red Flag Indicators

The presence of indicators such as delayed verification, modified payout details, geography inconsistencies, or suspicious email addresses triggers further review for investigation.

16. Vendor Risk Tiering

ShopAurora classifies vendors into Low, Medium, and High risk tiers to allocate monitoring resources effectively. High-risk vendors are subject to additional verification, payout delays, and potential suspension.

17. Continuous Improvement of Fraud Controls

Fraud prevention measures evolve based on new patterns, industry best practices, and regulatory guidance. The compliance team periodically reviews these processes.

18. Policy Review and Updates

This policy will be reviewed annually or earlier if regulatory changes or security incidents occur. All revisions must be approved by the founding team.

19. Enforcement

Failure by employees or contractors to comply may result in disciplinary action. Vendors engage in fraudulent conduct may face suspension or reporting to authorities.

20. Contact Information

ShopAurora Email: hello@shopaurora.com
Location: Accra, Ghana