Stopping Identity Fraud Before It Starts: How Real-Time Bank Data Signals Protect Payments

Identity theft in the United States has hit historic highs—and criminals are getting faster, more sophisticated, and more automated.

As we enter FTC Identity Theft Awareness Week, the message for banks, lenders, and payment providers is clear: identity fraud prevention must begin upstream, at the account level, using real-time signals that detect fraud before the payment ever moves.

Identity Theft Is Surging—And So Is the Urgency

Over the past two years, identity theft and related fraud have accelerated dramatically according to the U.S. Federal Trade Commission’s (FTC) Consumer Sentinel Network:

• The FTC logged more than 1.1 million identity theft reports in 2024, a 9.5% increase from 2023.
• In the same year, total financial losses tied to fraud exceeded $12.7 billion, up nearly 23% year-over-year.
• Credit card fraud remained the largest category of identity theft, representing 43.9% of all identity theft cases in 2024.

These numbers reflect only the crimes victims reported—the real totals are almost certainly higher. And with synthetic identities, account takeovers, and digitally driven scams expanding, the threat surface continues to widen.

Traditional Fraud Tools Simply Aren’t Fast Enough

Most legacy fraud controls focus on authentication or decisioning after a consumer has already been onboarded or a payment has already been initiated. But as fraud shifts earlier in the customer journey, organizations need a new line of defense: real‑time bank and account intelligence.

This is where bank data signals change the game.

Why Real-Time Bank Data Signals Are Essential

Real-time bank data gives organizations a live view into the health, ownership, and recent behavior of an account—offering immediate, actionable insights such as:

✔ Identity-to-account matching: confirming the identity actually belongs to the account owner
✔ New-account risk indicators: spotting recently opened or high-velocity accounts commonly used in fraud schemes
✔ Account status checks: detecting closed, dormant, or suspicious accounts before money moves
✔ Behavioral insights: identifying abnormal patterns that suggest synthetic or stolen identities

Together, these signals help stop fraud before it starts—preventing unauthorized payments, reducing returns, and strengthening the entire onboarding process.

How This Protects Payments and Customers

Real-time account intelligence enhances several critical areas of the payments ecosystem:

• Faster, safer onboarding: Reduce false positives while preventing fraudulent account creation.
• Cleaner ACH payments: Avoid returns and minimize downstream operational costs.
• Lower synthetic identity exposure: Validate the account behind the identity—not just the identity itself.
• Confidence at scale: Real-time checks keep up with instant payments and consumer expectations.

At a moment when identity theft continues to break records, this early-stage visibility isn’t just beneficial—it’s essential.

Aligning With FTC Identity Theft Awareness Week

FTC Identity Theft Awareness Week reminds organizations that preventing fraud requires both consumer vigilance and advanced financial safeguards. Incorporating real-time bank data signals provides that safeguard—offering transparency, validation, and proactive fraud defense at the exact point where it matters most.

As identity theft grows and automation accelerates, true competitive advantage belongs to those who stop fraud before it ever reaches their doors.
 

ValidiFI is proud to support initiatives that protect consumers and power smarter decisions across the industry. Contact us today to explore how ValidiFI can improve your account validation and risk workflows.

When you need a smarter, safer payments strategy—ValidiFI It.