WILMINGTON, DE — Quavo Inc., a provider of fraud and dispute management technology for financial institutions, has completed its first System and Organization Controls (SOC) 1 Type 1 examination, adding another compliance credential as banks and credit unions face increasing scrutiny over third-party technology risk.
The examination covers Quavo’s Fraud Disputes Offerings System and evaluates the design of controls governing fraud and dispute operations, including onboarding, transaction processing, reporting, access management, and system oversight.
For financial institutions, SOC 1 reports serve as an independent assessment of a vendor’s internal controls and are commonly used during audits, regulatory examinations, and vendor due-diligence reviews.
“Our clients chose Quavo because they trust us to handle some of the most sensitive and complex operations in their business,” Co-Founder and Chief Executive Officer Joseph McLean said in a statement.
The milestone builds on Quavo’s existing SOC 2 Type 2 report and comes as financial institutions increasingly demand greater transparency and documented controls from technology providers that manage sensitive customer data and fraud-related processes.
Co-Founder and Chief Financial Officer Daniel Penne said the report provides financial institutions with documentation needed to streamline vendor assessments and regulatory reviews.
“A SOC 1 report gives their teams something concrete to work with during vendor assessments, regulatory exams, and annual audits,” Penne said.
The examination, conducted by accounting and advisory firm Baker Tilly as of March 31, 2026, assessed the design of Quavo’s controls but did not evaluate their operating effectiveness over an extended period, which is the focus of a SOC 1 Type 2 examination.
Quavo said it plans to pursue a SOC 1 Type 2 report, a step that would provide additional assurance to banks, credit unions, and financial technology companies relying on its dispute management platform.
The company markets its QFD platform and Aria AI technology to financial institutions seeking to automate fraud and dispute operations, an area that has drawn heightened regulatory attention amid rising digital fraud and increasing dependence on third-party service providers.
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