Real-time Fraud Data Sharing Consortium SardineX Rebrands to Sonar, and Expands to 20 Members
Since its launch last August, Sonar has grown to include 20 members, with an additional 30 entities currently engaged in due diligence and testing.
SardineX, now operates under the name Sonar, continuing its mission to facilitate collaboration among financial institutions and fintechs to combat financial crime. Sonar serves as an independent, member-run utility across payment rails to assess risk on counter parties. Since its launch last August, Sonar has grown to include 20 members, with an additional 30 entities currently engaged in due diligence and testing. This diverse membership spans the full spectrum of financial services.
“With the emergence of RTP and FedNow, the financial services industry is moving towards faster payments and instant settlement,” says Ravi Loganathan, President of Sonar. “Sonar provides real-time insights into recipient risk before a transaction is initiated. Banks, fintechs, and merchants can use Sonar to share data on first-party and counterparty risk in a fully compliant manner.”
Sonar currently aids participating members in preventing First-party Fraud, such as ACH Friendly Fraud, Authorized Push Payment fraud, and unauthorized wire transfers to cryptocurrency accounts. It also helps parties detect money mule accounts and makes Know Your Customer (KYC) checks more effective.
- First-party fraud: Enhances risk decisioning during account opening, account funding, and checkout with risk scores, reputation levels, and device and behavior signals.
- AML compliance: Verifies whether an entity has been flagged with a Suspicious Activity Report (SAR) to stop funds from being laundered through a chain of banks or fintechs via ACH debits.
- Credit risk: Later this year, Sonar will become a furnisher of credit risk data including DDA, card, and digital wallet transaction data as alternative signals for applicants with thin or no file on record.
Today, members are actively contributing towards new services to tackle emerging fraud and scam trends. Insights on these fraud and scam vectors are shared in compliance with the Gramm-Leach-Bliley Act (GLBA) and FinCEN 314(b) to prevent money laundering. A comprehensive set of operating rules, including the protection of shared data, has been ratified by members to govern the utility's operations.
Sonar invites financial institutions, fintechs, and merchants to join its important fight against financial crime. To learn more about Sonar, test the utility, or attend its next member meeting on February 13, 2024 as an observer, visit joinsonar.com/contact.
About Sonar
Sonar is an independent, member-run data consortium for sharing real-time insights on First-party and Counterparty risk. As a 314(b) designated utility, Sonar is committed to facilitating collaboration among financial institutions and fintechs to combat financial crime. Sonar’s approach is centered on establishing trust and security in financial transactions, irrespective of the payment rail, by verifying the credentials of all parties involved.
For more information about Sonar, its mission, and how it is revolutionizing the fight against financial crime, visit www.joinsonar.com.
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