Bank of America has introduced a fraud prevention service designed for corporate and public sector clients making payments in the United States.
Before initiating an electronic credit or debit payment, clients utilizing this service, known as Account Validation, can verify the status of an account and authenticate its owner. This feature, supported by bank-owned Early Warning Services, can respond to client inquiries in nearly real-time, enabling companies to confirm account details before processing payments to consumers via ACH, wire transfer, or real-time payments.
Account Validation also helps prevent misdirected payments, which can occur when a payee mistakenly provides an incorrect account number. David Kretz, head of global payments within global transaction services at Bank of America, stated, “With fraud on the rise, companies can no longer make assumptions about whether the person or entity on the other end of a payment is who they say they are. Account Validation and other fraud prevention tools are essential for today’s treasury teams.”