The fintech start-up has built up a database of 4 million verified businesses, it says.
Eftsure pioneers invoice authentication tool
Fintech start-up Eftsure has released an invoice authentication tool to help businesses crack down on rising incidents of payment fraud.
Called EftsureID, the firm said it drew on an in-house database of 4 million verified businesses built up over seven years.
Each business was issued with a unique ID that could be included on invoices and cross-matched against the database, it said.
Chief executive Mark Chazan said businesses had often been guilty of focusing on accounts payable systems and a gap in the market existed for a tool that secured accounts receivable.
“Currently we prevent an average of two or three high-value fraud attacks per week in accounts payable for our customers,” he said.
“When it comes to collecting payments, our customers rely on the controls of the individuals who pay them. Although businesses are not necessarily liable for missing accounts receivables, losses can cause lengthy legal proceedings or operational interruptions to the business.”
Since 2014, Eftsure has implemented third-party verification software addressing accounts payable for nearly 2,000 clients, overseeing $120 billion in B2B payments every year.
The move to accounts receivable was tricky, Mr Chazan said.
“Solving payment fraud in accounts receivables isn’t an easy task. It’s why we are the first on the market. We had to come up with something that’s user-friendly but can’t be easily sidestepped by fraudsters,” Mr Chazan said.
Head of marketing Niek Dekker said it took a year of development and testing to come up with a tool that met internal and external security requirements.
He said Eftsure’s current customers would be the first to access their new offering, but there were plans to expand the roll-out to other businesses and eventually individual consumers.
“We’re very excited to see the uptake. We’ve had a few early adopters and they’re happy with the service,” he said.
“There’s a real need for it and we see multiple applications … from car dealerships to superannuation funds and every business that takes large payments.”
In the past year, the ACCC estimated payment redirection scams increased by 76 per cent and payment fraud cost businesses $224 million.