It’s a well-known practice for bodybuilders and athletes to illegally use performance-enhancing substances during training. Indeed, it wasn’t so long ago that Lance Armstrong’s cycling legacy crumbled in what the US Anti-Doping Agency (USADA) called “the most sophisticated, professionalized and successful doping program that sport has ever seen.”
While anabolic steroids have legitimate medical uses, they are classified as controlled substances in the United States and many other jurisdictions. As a result, possession or distribution without a valid prescription (or other legal authorization) is illegal. Some people misuse these substances to “bulk up” quickly rather than build muscle through a strict regimen of weightlifting and diet. Doctors will typically never prescribe anabolic steroids to young, healthy people to help them build muscles.
In the same vein, selective androgen receptor modulators (SARMs) are a class of therapeutic compounds designed to produce effects similar to anabolic steroids. Unlike traditional steroids, SARMs selectively bind to certain tissues rather than the whole body. Although they were developed with the goal of reducing some of the side effects associated with anabolic steroids, their safety and long-term health effects remain uncertain. SARMs are frequently marketed as dietary supplements or as “research chemicals.” In the latter case, they often come with disclaimers stating they are not for human consumption. However, the U.S. Food and Drug Administration (FDA) has not approved any SARMs, meaning they cannot legally be marketed as dietary supplements or pharmaceutical drugs.
There are many risks to financial institutions, payment providers, and marketplaces associated with merchants who illegally import and sell anabolic steroids and SARMs, including the following:
Merchants selling illegal SARMs or steroids without prescriptions transgress a multitude of laws and regulations in many jurisdictions, exposing payment providers to civil litigation or criminal prosecution.
Due to the health risks associated with steroid use and consumption of SARMs, the legal repercussions and possible controversies surrounding these illicit sales constitute a reputational risk.
Online merchants dealing in the sales of anabolic steroids and SARMs are likely engaged in transaction laundering to earn (and hide) revenue.
Card brands specifically prohibit any unlawful activity from entering their payment systems.
Even if they aren’t aware of it, financial institutions or payment providers facilitating the unlawful sale of controlled substances or SARMs risk hefty fines, reputational harm, or disqualification from card brand access.
Audit your portfolio for known sellers of pharmaceuticals and nutraceuticals, ensuring all product offerings comply with regulations in each jurisdiction.
Partner with a Merchant Monitoring Service Provider to track new listings and merchant product listing changes.
Use tools and procedures to identify suspicious merchants who may be engaged in transaction laundering.
Payment providers and marketplaces must walk a fine line between instituting robust risk controls and operating quickly to drive business. If the compliance control set is too heavy, it can result in large numbers of false-positive notifications, which can slow business growth or cause revenue loss.
AI-driven technology is an essential tool for detecting illicit merchant activity, helping institutions in the payments ecosystem reduce overall portfolio risk and potential repercussions from major card brands. At G2 Risk Solutions, our solutions provide actionable insights to help payment providers and marketplaces avoid illicit commerce such as the sale of steroids or SARMs. Our Persistent Merchant Monitoring solution detects high-risk merchants and products before they harm your portfolio.