J.P. Morgan Payments and ValidiFI Team to Improve Account Validation

J.P. Morgan Payments has teamed up with predictive bank account/payment intelligence company ValidiFI.

The collaboration, announced Monday (Oct. 28), is designed to give businesses greater security and confidence in validating bank accounts and conducting transactions.

“For organizations conducting digital transactions on the ACH network, having a reliable bank account verification service is essential in order to mitigate risk and help detect fraudulent transactions,” the companies said in a news release provided to PYMNTS.

By integrating J.P. Morgan Payments’ validation services into its network, ValidiFI can now provide customers with expanded coverage and bank account insights via its vAccount+ solution, thus helping ensure transaction security.

According to the release, J.P. Morgan’s validation services include account and identity verification solutions, aimed at helping to reduce fraud and financial crime such account takeover, synthetic identity and business email compromise.

“Fraud prevention continues to be a top priority across the industry, and we’re committed to leverage technology along with our trusted network to help clients mitigate fraudulent activities,” said Ryan Schmiedl, head of Embedded Payments & Trust & Safety at J.P. Morgan Payments. “Collaborating with ValidiFI is another way we’re empowering clients through friction-free and highly reliable account validation capabilities to counter fraud and help protect their business.”

The partnership comes at a time when — per PYMNTS Intelligence research — 30% of American consumers and/or households have lost money in a financial scam in the past five years. That means scams have affected around 77 million people, often with severe financial implications: Most victims lose upwards of $500, with many losing thousands of dollars.

“Banks and other financial institutions (FIs) serve as the frontline defenders and advocates for victims of financial scams,” PYMNTS wrote recently. “We find that consumers are much more likely to recover funds if they have reported the losses to their FI. That said, more than half of scam victims consider switching FIs after their traumatic experience, and 30% actually do so.”

In related news, PYMNTS explored the concept of embedded identity, which refers to integrating identity verification within platforms so that the process becomes invisible to consumers.

“The growing reliance on identity verification across financial transactions isn’t just about security — it’s about transforming the customer experience,” PYMNTS wrote. “Whether you’re swiping your phone at the register or transferring funds internationally, the way your identity is managed could soon be the difference between a seamless transaction and a stalled one.”

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