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A credit checking company is offering a new product to tackle the problem of invoice fraud.
This type of fraud occurs when criminals impersonate genuine business suppliers and deceive companies into making payments to a fraudulent account. It is a particular problem where there is a high volume of payments, or the payments are of high value.
Experian claims that its Bank Wizard Absolute is the first solution of its kind on the market to give businesses the confidence that they are making payments to genuine businesses, by verifying the account information before payments are made.
Bank Wizard Absolute will confirm the link between businesses and the current accounts they hold. This is achieved by comparing the bank account information provided by the business with records held by Experian, all in real time.
Jonathan Williams at Experian said: “Invoice fraud has become a sophisticated enterprise, so spotting it before it happens is a significant challenge. Official statistics give an idea of the pace at which it is increasing among SMEs. The industry feedback we’ve had, however, suggests that it exists on a much bigger scale, affecting a far wider range of organisations and potentially costing UK businesses in the range of hundreds of millions. Electronically checking the ownership of UK business bank accounts is a new approach which could revolutionise how businesses set up and pay other businesses, as well as protect themselves from significant losses and damage to their supplier relationships.”
The product developers add that Bank Wizard Absolute will help UK businesses address the issue of payment failure. This is when incorrect information is entered on a system as a result of human error and payments are made into an incorrect account. This often incurs late payment penalties, but the damage to the relationship between a business and its stakeholders can be highly detrimental. Visit http://www.experian.co.uk/identity-and-fraud/identity-checking/bank-account-verification.html.