UK-based lender HSBC has partnered with ValidiFI, a predictive data and analytics solutions provider, to enhance its bank account validation and fraud monitoring capabilities. 

This collaboration aims to bolster HSBC’s efforts in modernising payment security and protecting customers from fraud, scams, and mule accounts. 

ValidiFI will provide HSBC with advanced solutions to ensure the integrity of accounts used for credit card payments. 

HSBC will leverage ValidiFI’s data intelligence to verify account ownership, detect fraudulent activities, and identify suspicious patterns across bank accounts. 

The implementation involves real-time validation for newly registered accounts and continuous monitoring to identify emerging fraud signals. 

This partnership  addresses the increasing need for sophisticated tools to combat threats like synthetic identities and payment scams. 

HSBC US retail product and lending head said John Phelan said: “Providing customers with efficient and secure ways of making credit card payments is essential. 

“Our innovation and transformation efforts in personal banking require advanced fraud services, such as those offered by ValidiFI, that protect our clients.” 

ValidiFI said that its solutions will enable HSBC to verify that payments are from legitimate sources, detect risks before transactions occur, and analyse behavioural patterns to preempt scams and misuse. 

The ongoing monitoring will help HSBC adapt to evolving fraud tactics, ensuring a secure banking environment. 

ValidiFI offers insights through its Omni platform to help financial institutions in validating accounts, detecting fraud, and assessing credit risk. 

By examining the connections between bank accounts, consumers, and payment behaviours, the company provides a comprehensive perspective on transactions. 

ValidiFI CEO John Gordon said: “HSBC is setting a new standard in payment security by proactively adopting technologies that go beyond traditional fraud prevention. 

“Its decision to implement our intelligence platform demonstrates a clear commitment to safeguarding customer transactions and staying ahead of increasingly complex payment schemes.” 

Last week, Reuters reported that HSBC announced a strategic evaluation of its retail banking operations in Egypt, as part of its ongoing worldwide restructuring efforts.