Equifax Unveils Fraud Prevention KYB Tool

Equifax is rolling out a know your business (KYB) solution to help U.S. lenders and businesses make more informed decisions about onboarding new accounts or vendors. 

Called the “Business Verification Solution,” the tool addresses a growing need to gain visibility into the legitimacy of a business earlier in the application process amid a spike in new business applications, Equifax said in a Tuesday (Feb. 27) news release.

The company added that this verification is vital to internet and phone service providers, financial institutions, lenders, insurance carriers and others, to help identify potential risks such as fraud before forging new business relationships. 

The Equifax Business Verification Solution uses industry-leading data and analytical models, providing users with an easy-to-read cohesive report that provides a more complete view of the business applicant and the principal, according to the release. The solution’s verification process is based on a comprehensive risk model and allows customers to evaluate multiple aspects of a small business.

“Businesses, both large and small, help drive economic growth — which in turn impacts the communities where they operate,” Sal Hazday, senior vice president and general manager of the Equifax U.S. Information Solutions Commercial Business, said in the release.

“Equifax continues to develop solutions and resources to help provide businesses of all sizes with the information they need to make informed decisions, and our new Business Verification Solution is designed to help companies gain visibility into who they are working with before the relationship is formed,” Hazday added.

In September, Equifax partnered with global identity verification firm Mitek Systems to prevent identity fraud.

Their alliance aims to combat evolving digital fraud threats and enhance Equifax’s ability to prevent identity fraud, PYMNTS reported Sept. 21.

Equifax will integrate Mitek’s biometric-based identity verification and liveness detection technology into its digital identity software, per the report. The integration will allow Equifax to offer enhanced identity verification solutions to detect complex identity risks throughout the customer lifecycle.

“Our objective is to help businesses protect their customers and themselves from risks associated with digital interactions,” Adam Gunther, senior vice president and general manager of the digital solutions team at Equifax, said in a release at the time. “Providing a safe and secure online environment is critical. We are working closely with partners like Mitek to provide a suite of identity verification and authentication solutions to help address the significant fraud challenges companies face today.”