Verification Explained
Why Chariot’s Verification Process Is So Thorough?
🚨 The Rising Threat of Payment Fraud
Over the last few years, check fraud and ACH fraud have surged, doubling every two years — and the pace is accelerating. Advances in AI have made it easier for bad actors to forge checks, fake identities, and intercept banking details.
Our Donor Advised Fund (DAF) and Payer partners have seen these risks firsthand and are pushing for higher security standards to protect themselves and the nonprofits they support. See this LinkedIn post for seven common problematic practices in payments.
💳 Why DAF Fraud Is Especially Common
Fraud in DAF giving can be more prevalent than in other payment types because:
Gifts arrive without notice — Nonprofits often aren’t expecting the gift, making it easier for fraudsters to intercept or redirect funds.
Donors may not expect immediate acknowledgment — Many donors have already given to their DAF account months or years earlier, so they’re not waiting for confirmation, reducing detection.
Interception can go unnoticed — If a DAF check or ACH is stolen or altered, there’s often no automatic alert or bounced payment to flag the problem.
This combination of low visibility and delayed detection makes strong fraud prevention critical.
🏦 A One-Time Process for Long-Term Protection
Chariot’s verification process is a one-time setup that aligns with U.S. banking regulations — specifically the Customer Identification Program (CIP) and Customer Due Diligence (CDD) rules (law text here, CIP overview here).
Verification ensures:
Your account is tied to a legitimate, verified nonprofit
Unauthorized withdrawals and fraudulent transactions are prevented
You meet the same compliance standards as banks and major financial institutions
Once verified, your Chariot account uses non-debitable account and routing numbers — these cannot be used to pull money from your account, making them safer than sharing standard bank details or voided checks.
🔒 How We Protect Your Information
Your verification data is stored only by our identity verification provider, Footprint — not on Chariot’s servers. Footprint uses secure enclave technology to isolate sensitive data from the rest of the system with memory, CPU, and network isolation.
Even if hacked, your data remains inaccessible
This is far more secure than traditional cloud storage
Read more about Footprint’s approach here.
✅ Summary
Chariot’s verification process:
Meets the highest U.S. banking compliance standards
Stops modern fraud tactics before they reach your organization
Protects your data with industry-leading secure enclaves
Is a one-time setup for ongoing protection
Fraud prevention isn’t just compliance — in the DAF space, it’s essential. Chariot’s approach sets a new standard for security and trust between donors, nonprofits, and Payers.
Last updated