FundingShield, a wire fraud prevention software provider, entered into an agreement with Mastercard to use the open banking technology provided by the latter's subsidiary
Business email compromise, a form of wire fraud in which the victim is tricked into sending money to the perpetrator using electronic funds transfer,
"FundingShield has over 95% coverage of licensed service providers in the real estate, mortgage, closing and settlement space in our live repository," said CEO Ike Suri in a press release. "This partnership with Mastercard allows us to leverage its open banking connectivity of over 95% of U.S. based deposit accounts for consumer-permissioned access to real-time, bank-sourced data to expand our B2B and B2B2C payment verification solutions for clients."
An open banking arrangement gives third-party financial service providers access to consumer banking, transaction, and other financial data from banks and nonbanks through the use of application programming interfaces, according to Investopedia.
Experian, for example, cited open banking access as one of the benefits of
With this partnership, a FundingShield client can verify bank account ownership information using consumer-permissioned access through the Mastercard platform. The data is used to approve moving the payment process forward in advance of a lender initiating a wire or other electronic payment from a bank.
"Companies need to equip their staff with loss prevention and risk management tools to protect against the evolving threat actors and fraud schemes," Suri said, pointing out that payment fraud is growing in all industries. "Cybersecurity starts at the top, from a leadership perspective."
Suri previously said that 51% of the mortgage transactions vetted through FundingShield last quarter had some sort of issue.
Finicity is one of the vendors approved for lender use to obtain cash-flow information for underwriting mortgages being put through
