By leveraging DIRO’s bank verification solution in vendor onboarding, Fraud.net helps Tier 1 global banks to verify bank account ownership in international markets.
Whitney Anderson — CEO, Fraud.net
Vendor onboarding (KYB)
The problem:
Insufficient vendor due diligence expose businesses to high risk, money laundering, and financial crimes.
It is particularly important to verify bank account ownership of vendors, before paying invoices, to avoid payments in error and to prevent money laundering. Therefore, bank account verification is an instrumental step in KYB (Know Your Business).
The solution:
DIRO allows businesses to verify vendors’ bank accounts, proof of address, and incorporation documents in real-time. This helps to eliminate fake and stolen documents when onboarding new vendors.
Via Fraud.net’s fraud prevention and risk management platform, Tier 1 global banks use DIRO’s bank account verification solution in vendor due diligence across international markets. Verification of bank account ownership is a critical element in KYB to prevent fraud and incorrect payouts.
DIRO’s technology creates a machine-readable JSON file that can be fed into decision engines for real-time verifications. This process eliminates the need for human reviews and OCR errors.
DIRO’s solution makes it possible for international financial institutions such as banks, payment providers, and crypto companies to have global coverage for regulatory compliance that otherwise was difficult or not possible.
Fraud.net, headquartered in New York, United States, operates the first end-to-end fraud management and revenue enhancement ecosystem specifically built for digital enterprises and fintech globally.
Onboard vendors in seconds vs. days
Eliminate fake and stolen documents
Global coverage in 195 countries
DIRO’s vendor verification solution aims to empower businesses with the capability of making smarter decisions and reducing risk. With DIRO, businesses can:
- Verify the vendor’s bank account information.
- Verify vendor’s proof of address.
- Verify vendor’s business documents (Vendor KYB).
Vendor onboarding is the process of collecting and verifying information and documentation from a vendor before establishing a business relationship. It is important because it helps to ensure that the vendor is legitimate and trustworthy and that the products or services they provide meet your business's standards. Furthermore, it also aims to reduce fraud and payouts to incorrect bank accounts.
Supplier onboarding is similar to vendor onboarding and refers to the process of collecting and verifying information and documentation from a supplier before establishing a business relationship. The main difference is that a supplier is a company that provides goods or services to another company, while a vendor is typically a company that provides goods or services to consumers.
Vendor bank verification is the process of verifying the bank account information provided by a vendor to ensure it is accurate and belongs to the vendor. This is important because it helps to prevent fraud, such as a vendor providing false bank account information or redirecting payments to a different account.
Supplier bank verification is similar to vendor bank verification and refers to the process of verifying the bank account information provided by a supplier to ensure it is accurate and belongs to the supplier. This is important for the same reasons as vendor bank verification.
To prevent fraud in vendor onboarding, it is important to implement strong verification procedures. These may include verifying the vendor's identity, performing background checks, verifying bank account information, and conducting site visits or inspections.
The sharpest tool in vendor onboarding and KYB is to capture source data directly from banks with impersonation checks at login. This indirectly taps into the bank’s KYB protocol and helps strengthen your own KYB process. To learn more, schedule a demo
The sharpest tool in vendor onboarding and KYB is to capture source data directly from banks with impersonation checks at login. This indirectly taps into the bank’s KYB protocol and helps strengthen your own KYB process. To learn more, schedule a demo
Proof of address for a vendor refers to documentation that verifies the vendor's physical address, such as a utility bill or lease agreement. This is important because it helps to ensure that the vendor is legitimate and that their physical location matches the information provided. Asking for verified utility bills is the most common method. DIRO helps to capture proof of address data directly from the issuing source, such as electricity, gas, water, and telecom companies.
Vendor onboarding automation refers to the use of software or technology to streamline the vendor onboarding process. This can include the collection and verification of vendor information and documentation, as well as automating the communication with the vendor. The benefits include faster onboarding times, greater accuracy, improved user experience, reduced costs, and reduced risk of fraud.
Vendor KYB, or Know Your Business, is the process of verifying a vendor's identity and business information to ensure they are legitimate and trustworthy. This may include verifying their business registration documents, tax identification number, and other relevant information. KYB is an important part of the vendor onboarding process as it helps to ensure that the vendor is a reliable partner for your business.
The most important step in vendor onboarding is to verify the vendor’s bank account to prevent fraudulent payouts and reduce operational risks. With user consent from the vendor, DIRO helps to capture bank account information directly from the bank source. In addition, impersonation checks at login verifies that someone with the right authority and credentials at the vendor can perform bank verification, proof of address, and business document verification checks.
The most important step in vendor onboarding is to verify the vendor’s bank account to prevent fraudulent payouts and reduce operational risks. With user consent from the vendor, DIRO helps to capture bank account information directly from the bank source. In addition, impersonation checks at login verifies that someone with the right authority and credentials at the vendor can perform bank verification, proof of address, and business document verification checks.
