Plaid Study Links Account Checks to Faster Fraud Detection

Speed is the biggest enemy in modern consumer financing. As credit approvals and loan disbursements move toward real-time, your fraud detection systems must keep up. A new study from Plaid and PYMNTS reveals a dangerous gap: nearly half of all firms cannot detect fraud in real time. This is a major risk for retailers offering instant financing or BNPL options, where a delay in detection means the goods are already out the door before the fraud is flagged. For merchants, this means that traditional rules-based scoring is no longer enough. The research highlights that 'account checks'—verifying the actual bank account status and ownership before a transaction—are the most effective tool for stopping fraud early. Businesses using these checks identify fraudulent activity significantly faster than those relying solely on credit scores or basic ID verification. If your current financing partner isn't using real-time account verification, you may be exposed to higher chargeback rates and identity theft claims. Implementing faster checks doesn't just protect your bottom line; it also reduces friction for legitimate customers by confirming their ability to pay instantly without manual reviews.

Source: PYMNTS

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