Payee Matching – It’s About Time.
Sometimes, all it takes is the right person asking the right question. U.S. Rep. Brad Sherman (D-Calif.) did just that during a Nov. 14 hearing before the House Financial Services Committee.
During the hearing, Sherman asked Randal Quarles, a member of the Board of Governors of the Federal Reserve and the vice chairman for Supervision, if the Fed has considered requiring financial institutions to adopt payee matching requirements on wire transfers to combat the growing threat of wire fraud.
When Quarles said the Fed had taken it under consideration along with several other measures, Sherman responded, “Well, I hope you’d go back and light a fire under them because this is important.”
We couldn’t have said it better ourselves.
Payee matching is a simple, yet highly effective safeguard to ensure funds are being wired to the intended recipient and has been a core component to SafeWire since its inception. On its own, payee matching provides a huge deterrent to wire transfer fraud, and when combined with other identity verification and authentication measures, it helps ensure a fraud-free wire transaction.
According to the FBI, $2.9 billion has been lost since October 2013 due to Business Email Compromise (BEC) or Email Account Compromise (EAC) schemes, and fraudulent activity is on the rise, especially in the real estate industry. It’s staggering statistics like those that led us to make payee matching requirements standard in SafeWire rather than wait for others in the title industry or government to implement changes to their requirements.
Making payee matching a requirement for all banks and financial institutions conducting wire transfers would go a long way to combating the growing threat of wire fraud, and we applaud forward-thinking legislators like Rep. Sherman for pushing for these types of safeguards to protect homebuyer’s funds.