Verifying Bank Account Ownership Is More Important Now Than Ever
In today’s digital environment businesses cannot afford not to verify consumer or vendor’s bank account ownership.
Verifying the bank account’s ownership with open banking capabilities has proven to be one of the most authoritative methods in reducing fraud. Though the process may seem costly it has become invaluable for protecting both businesses and customers from fraud.
With many businesses struggling in the wake and aftermath of the pandemic, fraud has only exacerbated their losses. Fraudsters have taken advantage of the many lacking reliable technological fraud prevention solutions. One of the problems is that many businesses relied on simple, manual fraud verification strategies. But this has gone poorly for both businesses and consumers or vendors as fraud continues to intensify.
Verifying bank account ownership plays a vital role in reducing the risk of fraud instantly. At its simplest, account ownership validates that a customer or business is who they say they are, and they are using an account that does belong to them. Adding this extra layer of fraud prevention may sound costly but the truth is, it will cost you more once fraud has already occurred. Many businesses have re-evaluated how they assess fraud and risk after the pandemic and validating ownership is one of the most powerful.
Here are four reasons why you should consider bank account ownership validation:
As a business, your safest bet for reducing payment fraud and identifying risky customers instantly is to validate whether the information submitted matches the bank account owner data. Ownership validation can even help identify fraud related to unauthorized users including synthetic identities, stolen bank accounts, first-party, third-party, and vendor fraud.
Reduces Unauthorized Return Fees
Businesses lose millions every year because of incorrectly submitted payments whether due to intentional or accidental human error. The added layer of bank account ownership provides security ensuring both deposits and transfers are made to the correct bank accounts. This also reduces the fees related to unauthorized payments, returned ACH, and check payments.
Reduces Operational Costs
Don’t let the delays of manual processes cost you customers. Automated account solutions eliminate the costs associated with validating bank accounts manually or using prenotes. Additionally, utilizing account ownership solutions reduces operational costs and time, safely and efficiently.
Creates a Better User Experience
Streamline the application process with auto-populated data and expedite onboarding customers by eliminating manual verification and document requests. Additionally, if account ownership technology identifies mistakes during onboarding additional admin costs and friction to the customer are prevented. Using automated solutions also accelerates disbursements or payments, creating a quicker, beneficial process for your customers.
Account ownership validation is a powerful fraud mitigating, cost-effective, real-time account verification tool that just makes sense to implement. Now you can significantly reduce risk and prevent payments fraud. ValidiFI’s Bank Account Ownership solution quickly identifies unauthorized users, validates disbursements, reduces unauthorized ACH returns, verifies account status, and enhances KYC strategies. With a variety of services, you can increase your fraud filters and reduce your risks according to your business needs.
If you would like to learn how open banking can strengthen your risk strategies, guesswork is never the answer. Talk to the professionals at ValidiFI about the next-gen data-driven tools that can provide you with a more complete picture of a customer’s banking and payment information.
Contact us today at 754-209-2511 to discuss your validation needs and how we can work with you.