A screening hit occurs when an identity verification system flags a user's information due to a potential match with records in compliance databases. These databases may include watchlists, sanctions lists, politically exposed persons (PEP) lists, adverse media reports, or other regulatory data sources.
Common Reasons for a Screening Hit:
- Name Matches a Watchlist – If a user's name closely resembles or matches a name on a government or international watchlist (e.g., OFAC, EU Sanctions List).
- Politically Exposed Person (PEP) Status – If a user is identified as a high-profile public official or someone linked to them.
- Adverse Media Mentions – If there are reports of fraud, financial crime, or other negative news associated with the user.
- Inconsistencies in Documents – If the uploaded ID or supporting documents contain discrepancies.
- Unusual Location or IP Address – If the sign-up is from a high-risk jurisdiction or flagged region.
When a screening hit is detected, manual review is required to determine whether it is a false positive (i.e., an unrelated person with a similar name) or a legitimate concern requiring further action.