Bank of America, one of the world’s leading financial institutions, launched Account Validation, a fraud prevention service for businesses and the public sector.
The number of digital fraud attempts in the United States increased by 25.07% in the first four months of 2021, compared to the last four months of 2020. This is according to one TransUnion report, who found that looking at specific industries, digital fraud attacks against financial services companies increased 109% in the United States over the same time period. Globally, fraud attempts in this industry have increased by 149%.
How can account validation help prevent fraud?
Before initiating an electronic payment by credit or debit, a customer using account validation can check the status of an account and authenticate the owner of the account.
“With the increase in fraud, businesses can no longer make assumptions about whether the person or entity at the other end of a payment is who they claim to be,” said David kretz, Global Payments Manager in Global Transaction Services at Bank of America. âAccount validation and other fraud prevention tools are essential for today’s treasury teams. “
A key component of account validation is its ability to respond to customer requests in near real time. Businesses can use the service before making payments to consumers via ACH, wire transfer, or real-time payment. Additionally, account validation could help businesses comply with WEB NACHA debit account validation rule.
Account validation also helps prevent misdirected payments, which occur when a payee inadvertently provides an incorrect account number.
âAccount validation can help businesses prevent fraudulent payments without compromising the timeliness of valid payments to vendors and contractors,â said Stephanie Wolf, Financial Institution Sales Manager and Corporate Banking Sales Manager. global transaction services at Bank of America. “By reducing misdirected payments, businesses will also save a considerable amount of time and money trying to recover misdirected payments.”
Account validation is the latest payment innovation brought to market by Bank of America. Other launches this year include Select recipient, Full AP, the Executive Explorer travel card, Virtual account management (VAM 2.0), and improved Smart receivables. It is backed by Early Warning Services, LLC (EWS), a financial technology company that provides identity, risk and payment solutions to financial institutions. Early Warning is owned by seven US financial institutions, including Bank of America.