Biometrics and Security: Account Validation to Prevent Business Fraud in LATAM

In the dynamic business landscape of LATAM, financial security is more than a priority: it is an imperative necessity. Each year, business fraud generates losses in the millions; it is estimated that 67% of organizations in the region experienced an increase in fraud attempts in 2023, with losses often exceeding hundreds of thousands of dollars per incident. For CTOs and Security Managers, the key question is: how to shield supplier payments, payroll, and bounce transfers, while optimizing operating costs? The answer lies in account validation and biometrics, pillars of a robust security strategy.

The current landscape of fraud and security in LATAM

Latin America has become an epicenter of digital innovation, but also, unfortunately, of fraudulent activity. Cybercriminals are perfecting their techniques, using everything from phishing attacks to advanced social engineering, which translates into an increase in cases of identity fraud and unauthorized transfers. Companies face the constant challenge of how to avoid bounced transfers and protect their financial assets. The lack of a robust real-time account validation system opens the door to payment fraud to suppliers, common errors in payroll payments, and endless vulnerabilities that directly affect profitability and reputation. The adoption of technologies such as biometrics is not just a trend; it is a necessary evolution in security.

This complex context leads us to identify patterns and anomalies that, without adequate monitoring, can go unnoticed.

Critical warning signs your team should know

Unusual supplier account change requests: You receive an email requesting an urgent change to a regular supplier's bank account, often with a slightly different email domain or a suspiciously urgent tone. How to identify it: Implement a two-step verification process for any bank data changes, always confirming through a different channel (phone call to a known number, not the one in the email).

Discrepancies in payroll data or failed transfers: Employees reporting not receiving their payment or bank transfers bouncing without a clear explanation.How to identify it: The key is automatic and continuous validation of employee bank details, verifying account ownership and status before each payment cycle to reduce common payroll errors.

Transactions to newly opened or low activity bank accounts: Payments to suppliers or beneficiaries whose accounts appear to have been created recently or have a very limited transaction history.How to identify it: An advanced account validation system can provide information about the history and status of the account, raising alerts about unusual risk profiles.

Pressure to make quick or out-of-procedure payments: Someone from the finance team or a supplier pushes to skip approval protocols for an 'urgent' payment.How to identify it: Reinforce team education and strict adherence to established protocols, regardless of the perceived urgency.

Multiple failed or bounced transfer attempts: Observe a pattern of transfers that are attempted several times to the same account and are rejected.How to identify it: A transactional monitoring system with real-time alerts can detect these patterns and stop future attempts before they generate a bigger problem or additional costs due to retries. For more , see our detailed article.

Early recognition of these signs is crucial, but the impact of not doing so can be devastating.

The real cost to your business: Beyond direct loss

Fraud not only represents the direct loss of capital. Its impact branches out throughout the organization, affecting reputation, customer and supplier confidence, and internal morale. Investigating a fraud incident consumes valuable resources: staff time, legal fees, and potential regulatory fines. In addition, each bounced transfer or erroneous payroll payment generates operating costs in treasury, from bank fees to the inefficiency of reprocessing. CTOs and Security Managers understand that the lack of robust security not only puts funds at risk, but also operational continuity and brand image. 'The cost of not investing in fraud prevention will always far outweigh the cost of its implementation,' says a cybersecurity expert. This is a call to action to protect the sustainability of your business.

Faced with these risks, the question is no longer whether you should act, but how to do it in the most effective way to ensure the validation and security of your transactions.

How to protect yourself: Best practices and the power of biometrics

Automatic account verification: Implement solutions that automatically validate the ownership and status of bank accounts before any transaction. This is essential for and other critical disbursements.

Real-time validation: Not only verify once, but ensure that the bank details are valid and correspond to the desired holder at the exact moment of the transaction. This drastically reduces bounced transfers and payments to fraudulent accounts.

Continuous monitoring: Establish a system that observes and alerts about unusual transaction patterns or sudden changes in account activity. This proactive monitoring is key to security.

Team education and awareness: Train employees to recognize and report potential fraud attempts. An informed team is the first line of defense for your organization's security.

Implementing these practices is fundamental, but their true power is unleashed when integrated with the right technology.

Technology as an ally: Biometrics and Account Validation for the Future of Security

The future of business security lies in technological innovation. Advanced solutions for biometrics and account validation are already a reality that transforms fraud prevention. Biometrics, by using unique characteristics of people (fingerprint, facial recognition, voice), offers an almost infallible level of authentication, making identity theft extremely difficult. Combined with automatic real-time bank account validation, an impenetrable shield against threats is created.

Platforms like ValidaCuenta are at the forefront, offering identity verification and bank account validation in more than 7 countries in LATAM. This means that before making any payment—whether to suppliers, employees, or mass transfers—it can be confirmed that the account exists, is active, and belongs to the correct holder. The result? A drastic reduction in bounced transfers, minimization of the risk of fraud in payments to suppliers, and optimization of operating costs in treasury. For example, a logistics company in Colombia managed to reduce its failed payments by 90% and detect fraud attempts for USD 50,000 in the first month of use. Understanding the importance of account validation for secure onboarding is a fundamental step towards cutting-edge corporate security.

At ValidaCuenta, we understand the complexity of these challenges and the need for robust solutions.

The fight against fraud is constant, but you don't have to fight it alone. Integrating biometrics and account validation into your security strategy is the key to effective prevention, protecting your business from financial and operational risks. It is time to look towards innovation and secure the future of your transactions. Protect your business today with automatic account validation.