Adatree, an Australian open data solution provider, has unveiled a new ‘Insights’ product suite, including Account Verification and Balance Checks, in a move to empower companies in the fight against financial fraud and scams.
After Australians suffered losses exceeding $2.7billion due to financial scams in 2023, Adatree is providing a secure, real-time method for verifying account ownership and balances.
The open data firm is utilising the Consumer Data Right (CDR) framework, to curb losses to fraudsters targeting superannuation funds and insurers. Adatree hopes to equip businesses with tools to verify bank account ownership before transferring funds or updating account details, which it says is critical for insurance payouts and superannuation withdrawals.
Its new Insights product also enhances operational efficiency by reducing the reliance on manual verification processes. “Adatree’s Insights product represents a new era in fraud prevention and operational efficiency,” explained Jill Berry, CEO of Adatree. “Leveraging open banking and open energy, we’re empowering businesses to protect their customers against mistaken payments or financial scams. While these practices are common overseas, this is an Australian first.”
Adatree also explained that any business can use the new product, without the need for any CDR accreditation or licensing.
Combatting fraud across Australia
An Australian state government entity has become the first customer adopter of Adatree’s Insights product. This partnership highlights the essential role Adatree’s solutions play across both public and private sectors, providing effective tools to combat fraud and streamline operations.
The Insights products provide coverage for individual, joint, and business accounts with direct connectivity to 99.7 per cent of the household banking market in Australia. This aligns with international best practices, where European firms including Tink, Truelayer, and SurePay already leverage open banking technology to verify bank account ownership and provide vital financial insights.
While previously account details were manually verified by bank statements or not at all, this will streamline verification processes and reduce administrative burdens. Insights is compliant with stringent CDR regulations, safeguarding data security and privacy.
Consumers also benefit from the secure sharing of data, strictly for authorised purposes, which enhances consumer privacy.
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