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Risk Factors

Risk factors are the building blocks of risk scores. Each factor contributes a weighted value to an applicant's overall risk score based on signals detected during verification and screening.

Factor Categories

Identity Factors

FactorDefault WeightDescription
document_verification_failed+20ID verification unsuccessful
document_expired+10Document past expiration date
document_tampering_detected+30Signs of document manipulation
biometric_mismatch+25Face doesn't match document
liveness_failed+20Liveness check unsuccessful
multiple_verification_attempts+103+ verification attempts
data_inconsistency+15Submitted data doesn't match documents

Screening Factors

FactorDefault WeightDescription
sanctions_match_confirmed+50True sanctions match
sanctions_match_pending+35Unresolved sanctions hit
pep_tier_1+30Senior political figure
pep_tier_2+25Family member of PEP
pep_tier_3+20Close associate of PEP
adverse_media_high+20Serious negative coverage
adverse_media_medium+10Moderate negative coverage
adverse_media_low+5Minor negative coverage

Geographic Factors

FactorDefault WeightDescription
residence_sanctioned+45Resides in sanctioned country
residence_high_risk+20Resides in high-risk country
residence_medium_risk+10Resides in medium-risk country
nationality_sanctioned+40Citizen of sanctioned country
nationality_high_risk+15Citizen of high-risk country
tax_haven_connection+10Connection to tax haven

Behavioral Factors

FactorDefault WeightDescription
vpn_proxy_detected+10VPN or proxy in use
device_fraud_score_high+20High-risk device fingerprint
rapid_resubmission+15Multiple apps in short time
velocity_exceeded+15Unusual application velocity
email_disposable+10Disposable email address
email_new_domain+5Recently created email
phone_voip+5VoIP phone number

Business Factors (KYB)

FactorDefault WeightDescription
complex_ownership+15Multi-layer ownership structure
bearer_shares+25Company has bearer shares
nominee_directors+20Nominee directors identified
shell_company_indicators+30Characteristics of shell company
high_risk_industry+15Industry with elevated risk
recent_incorporation+10Less than 1 year old
ubo_unverified+15UBO not fully verified

How Weights Work

  • Each factor detected during verification adds its weight to the applicant's total risk score.
  • Higher weights indicate more serious risk signals.
  • The total score determines the risk level: low (0-30), medium (31-60), or high (61+).
  • Multiple factors are summed to produce the final score.

Negative Weights (Risk-Reducing Factors)

Some factors can reduce risk. These use negative weights:

FactorWeightUse Case
verified_returning_customer-15Previously approved customer
high_value_tier-10Premium customer segment
trusted_referral-5Referred by trusted partner
long_relationship-105+ year customer relationship

Aggregation Methods

When multiple factors in the same category fire, the system can aggregate them in different ways:

MethodDescription
sumAdd all factor weights (default)
maxUse highest factor weight only
averageAverage of factor weights
anyFixed weight if any factor present

Analytics

Risk distribution data is available through the analytics dashboard and the GET /api/v1/analytics/risk endpoint, which returns applicant counts by risk score bucket.


Next Steps