Eiger targets direct debit fraud
02 October 2007 | 4984 views | 0
Experian subsidiary Eiger Systems is launching a new customer verification service designed to help UK firms detect direct debit fraud.
The application - which is part of Eiger's bank data validation service Bank Wizard - enables organisations to spot when a prospective customer is providing false or incorrect bank account details for automated payments.
The new module - called Bank Wizard Absolute - uses data from Eiger's parent company Experian to validate customers' payment details at the time of application and when setting up automated payments.
Experian says fraudsters are able to tap into weaknesses in the current direct debit scheme by posing as legitimate customers or supplying false account data that passes existing checks.
But the new system enables businesses to check if a UK bank account exists and match it to the correct owner.
As well as spotting potential fraud the service can help reduce transaction errors by ensuring that any bank account details provided by the customer for automated payments are correct.
Commenting, Jonathan Williams, director of communications and product strategy, Eiger Systems, says: "Bank Wizard Absolute can reduce significantly both transaction errors and payment fraud by providing certainty in real-time that customer-supplied bank account information is correct and relates to a real account, a specific individual and associated address."