Overview
ScanX's AI Data Validation rules bring automated merchant data verification directly into your Scorecard workflow. The new AI capabilities cross-reference the information submitted on a merchant application against dozens of authoritative sources — including Secretaries of State, national business registries, the Better Business Bureau, Google Maps, social media platforms, and more.
The result is immediate directional indicators of merchant legitimacy for underwriters. Instead of manually chasing down whether a business name is consistent across sources, whether a phone number is active, or whether a principal's name appears in ownership records, underwriters can see those signals surfaced automatically in the Scorecard and focus their attention on exceptions and red flags.
These rules are display-only — no scores or flags are applied based on AI Data Validation results at this time. Each rule presents a summary view of key indicators, with an expandable section for supporting evidence and AI reasoning, including links to sources referenced in the reasoning section.
Prerequisite
AI Data Validation rules are part of the KYC SiteScan integration and require an active KYC SiteScan configuration on your account. Aside from having an active KYC SiteScan integration, no additional settings or credentials need to be updated with KYC SiteScan.
AI Data Validation Rules
Overall Status Confidence Score
The Overall Status Confidence Score is an aggregate indicator of the AI engine's confidence in the validity of the merchant's data profile as a whole. It synthesizes the results across all other validation categories — Business Profile, Address, Phone, Principal, Location, and URL — into a single score displayed prominently at the top of the AI validation section in the Scorecard.
This rule is designed to give underwriters a fast, high-level signal before drilling into individual category results. A lower overall confidence score is a prompt to review the individual rule cards more closely for the specific areas driving the uncertainty.
What you'll see in the Scorecard:
- Overall confidence score (displayed as a percentage)
- Overall validation status
Business Profile
The Business Profile rule validates the consistency and accuracy of the merchant's business identity across authoritative sources. The AI engine cross-references the corporate name and any DBA names submitted on the application against secretaries of state, national business registries, the merchant's own website, BBB, social media, Yellow Pages, and other trusted sources.
Beyond name consistency, the rule determines the merchant's general industry classification, entity type (including whether the business is a nonprofit), and business founding date — all of which are useful context signals during underwriting.
What you'll see in the Scorecard:
- Business name consistency assessment
- Industry classification
- Entity type (including nonprofit determination)
- Business start date
Expanding the rule reveals supporting evidence and any name discrepancies found across sources, including a detailed explanation of what was found and where.
Address Validation
The Address Validation rule confirms whether the merchant's provided address actually exists, characterizes the type of address, and flags indicators that may warrant closer review. The AI engine validates the address against multiple sources and checks whether the address appears on the merchant's own website.
Key risk signals this rule surfaces include mail drop locations (USPS, FedEx, UPS, and similar), vacant properties, and addresses that are inconsistent with the merchant's business type — for example, a residential address submitted for a business that would typically operate from a commercial location.
What you'll see in the Scorecard:
- Address exists indicator (valid/invalid)
- Address formatting status
- Address type (commercial or residential)
- Mail drop indicator
- Vacant property indicator
- Suspicious location indicator
Expanding the rule reveals supporting evidence for each finding.
Phone Number Analysis
The Phone Number Analysis rule validates the merchant's provided business phone number across multiple dimensions. Beyond simply checking whether the number is active, the rule determines the phone type (mobile or landline) and assesses whether it is consistent with the merchant's business type — a mobile-only number for a business that would typically have a commercial landline, for example, can be a useful signal worth noting.
The rule also validates whether the phone number is found on the merchant's own website, adding another layer of consistency checking between the application data and the merchant's digital presence.
What you'll see in the Scorecard:
- Phone active status
- Phone formatting status
- Matches business type indicator
Expanding the rule reveals supporting evidence and any discrepancies identified.
Principal Verification
The Principal Verification rule cross-references the principal names provided on the merchant application against ownership records, business listings, social media, and other sources to determine whether those individuals are genuinely associated with the business. The rule also discovers the roles those principals hold (e.g., owner, officer, manager, agent) and surfaces any potential adverse media.
A notable capability of this rule is intelligent name variation matching. Minor differences between the name as submitted and the name found in external sources — for example, "Javier Navarro" on the application versus "Javi S. Navarro" in a registry — are handled by the AI engine, which determines whether the variation is likely the same individual rather than automatically treating it as a mismatch.
What you'll see in the Scorecard:
- Ownership records match indicator
Expanding the rule reveals supporting evidence, including discovered principal roles and any adverse media findings.
Location Assessment
The Location Assessment rule uses Google Maps data to assess the merchant's physical location independently from the address submitted on the application. It validates whether the merchant appears to actually operate at the provided address, checks whether the business is currently open or closed, and identifies whether the location could be considered a high-risk area. The rule also notes if other same or similarly named locations exist, which can be relevant context for certain business types.
This rule complements Address Validation by going beyond whether the address itself exists to assess what is actually at that location and whether it is consistent with an active, operating business.
What you'll see in the Scorecard:
- Operational status (open, closed/inactive)
- Registered vs. actual location match indicator
- High-risk jurisdiction indicator
Expanding the rule reveals supporting evidence, location discrepancies, and any other discovered locations under the same or similar name.
URL Discovery
The URL Discovery rule surfaces URLs associated with the merchant that the AI engine has discovered — including the primary business website, social media profiles, and business listings — even when no URL was provided on the merchant application. Each discovered URL is classified by type and assigned a confidence score.
This rule is particularly useful for merchants who submit applications without a website URL, or where the URL provided may not reflect the merchant's full online presence. URL types are displayed as color-coded, human-readable labels (e.g., "Main Business," "Social Media") consistent with the KYC SiteScan report.
What you'll see in the Scorecard:
- Up to 3 discovered URLs, each showing:
- URL with hyperlink
- URL type (Main Business, Social Media, etc.)
- Confidence score
Expanding the rule reveals the full list of discovered URLs and the AI's reasoning behind each classification.
How to Enable KYC AI Validation in ScanX
The new KYC AI data validation rules are configured in the same was as any other scoring rules. In order to add them, navigate to Administration > Scorecards, then select a Scorecard you want to add them to. Once opened, go to the Scoring Rules & Weights tab. Click the + button in the page where you want to add the rule(s).
Search for "KYC AI" to quickly find the new data validation rules which are under the new section KYC SiteScan section header, "KYC SiteScan AI". Click the checkbox for one or multiple of the rules, then click Next through the entity selection and confirm to add the rule(s) to the Scorecard.
FAQ
1. Do these rules affect my Scorecard score or trigger flags? No. All AI Data Validation rules are display-only at this time. No scores are applied and no review, decline, or prohibited flags are triggered based on these results. They are designed to surface information for underwriter review only.
2. Do I need to do anything to enable these rules? If you have an active KYC SiteScan integration, the rules are available to add. Go to the Scorecard editor and search for “KYC AI” when adding new rules to add them to your Scorecard.
3. Is there an additional cost for these rules? At the time of release, no, the AI data validation rules are included for partners already using KYC SiteScan in ScanX
4. Is this data from primary sources? AI Data Validation results are generated using Generative AI and are considered synthetic data. The AI synthesizes signals from KYC SiteScan's aggregated real data sources, but the validation output itself is AI-generated rather than a direct pull from a primary source. Results should be used as an accelerant for review, not as a standalone verification.
5. What if data is unavailable for a rule? Each rule is built to handle missing or incomplete data gracefully. If a particular validation cannot be completed, the rule will display a fallback message rather than leaving the card blank.
6. Can these rules be scoring and flagging in the future? Please share feedback on which rules you’d want scored/flagged and how you’d expect the logic to work with your Customer Success Manager for consideration.