Bank account fraud is one of the fastest-growing threats facing South African businesses and financial institutions. As criminals employ increasingly sophisticated methods to intercept payments, impersonate account holders, and redirect funds to fraudulent accounts, the ability to verify that a bank account belongs to the person or entity claiming to own it has become a foundational tool in any fraud prevention strategy.

Bank Account Verification Services (AVS) provide that ability — quickly, accurately, and at scale. This guide explains what bank AVS is, how it works, what fraud it prevents, and why it is a critical component of both risk management and regulatory compliance for South African businesses.

What is Bank AVS?

Bank Account Verification Services (AVS) refers to the process of verifying information about a bank account — principally confirming the identity of the account holder and validating the legitimacy of the account itself. An AVS check works by cross-referencing the identity of the account holder against the bank account number provided, confirming firstly that the account is real and active, and secondly that it is owned by the individual or entity it is purported to belong to.

In its most common application, a bank AVS check is used to confirm that the person or business providing a bank account number is the legitimate owner of that account — not a fraudster substituting their own account details in place of a legitimate party's.

Why Does Bank Account Verification Matter?

The scale of bank account fraud in South Africa makes AVS not merely useful but essential. According to the South African Banking Risk Information Centre (SABRIC), digital banking fraud incidents increased by 86% in 2024, rising from approximately 52,000 cases in 2023 to nearly 98,000 reported incidents — with gross fraud losses reaching R1.888 billion, a 74% increase year on year. Card fraud losses added a further R1.466 billion to that total. SABRIC has warned of a potential "fraud storm" ahead if the current trajectory continues.

A significant and growing proportion of this fraud involves the manipulation of bank account details — whether through Business Email Compromise (BEC), fake invoice fraud, impersonation of suppliers, or account takeover through SIM swap attacks. In BEC fraud, criminals intercept business communications and substitute legitimate bank account details with fraudulent ones, diverting payments before the fraud is detected. Impersonation fraud — where criminals pose as a trusted individual or business to obtain payments — spiked by 356% between 2023 and 2024, according to the South African Fraud Prevention Service (SAFPS).

The common thread in many of these fraud types is the use of a fraudulent or unverified bank account as the vehicle for extracting funds. AVS checks close that gap by verifying the account before the payment is made or the relationship is established.

What Fraud Does Bank AVS Prevent?

Understanding the specific fraud types that AVS is designed to counter helps to illustrate its value across a range of business contexts.

Supplier and vendor payment fraud occurs when a fraudulent supplier — or a criminal impersonating a legitimate supplier — provides false bank account details to divert payments. By conducting an AVS check on a supplier's account before authorising payment, a business can confirm that the account is registered to the expected entity and flag any discrepancies before funds are transferred.

Business Email Compromise (BEC) involves criminals intercepting or spoofing business communications to convince a finance team to update payment details or make an urgent transfer to a new account. An AVS check at the point of any account detail update provides a critical layer of verification that can prevent these payments from proceeding.

Fraudulent loan or credit applications frequently involve applicants providing bank account details that do not match their verified identity — either using someone else's account or a recently opened account designed to capture disbursed funds. An AVS check as part of the credit application process confirms the match between the applicant's identity and the account they have submitted.

Payroll fraud and ghost employees involve fraudulent bank accounts being inserted into payroll systems to capture salary payments. Batch AVS processing allows businesses to verify the legitimacy of every account in their payroll system, identifying anomalies before they result in financial loss.

A recently opened bank account — detectable through an AVS check — is one of the most consistent indicators of fraud across all of the above scenarios. Legitimate suppliers, employees, and customers rarely open new accounts immediately before entering a business relationship. When an AVS check reveals a very recently established account, that is a significant red flag that warrants further investigation before any transaction proceeds.

What Does a Bank AVS Check Verify?

A comprehensive bank AVS check returns a range of information that empowers a business to make an informed risk assessment. Depending on whether the account belongs to an individual or a corporate entity, an AVS check will typically confirm:

For individuals: whether the bank account number is valid and active, the identity of the account holder, the account type, and whether the account holder's identity matches the name and ID number provided.

For companies, trusts, and NGOs: whether the business bank account is valid and active, the registered name of the entity linked to the account, and the company registration number or equivalent identifier associated with the account. As with individual accounts, discrepancies between the submitted entity details and the account records are key risk indicators.

In both cases, the AVS check functions as a risk assessment tool — providing verified information that allows a business to detect anomalies, scan for red flags, and make an informed decision before committing to a transaction or business relationship. It is important to note that risk assessment and risk mitigation are distinct processes: AVS equips a business with the verified information needed to assess risk, while the decisions taken in response to that information constitute risk mitigation. ThisIsMe provides the tools for risk assessment; the risk mitigation decisions remain the responsibility of the business.

AVS as a KYC and FICA Compliance Tool

Bank AVS checks are an important component of the broader Know Your Customer (KYC) process. KYC refers to the procedures and mechanisms businesses use to verify the identities of their customers before conducting business — and AVS sits naturally within that framework by verifying that the financial account a customer presents is genuinely theirs.

In many financial and business contexts, AVS checks are a legal requirement under South Africa's AML/CFT legislative framework, governed primarily by the Financial Intelligence Centre Amendment Act (FICA). Accountable Institutions — a broad designation that encompasses banks, insurers, forex providers, estate agents, iGaming operators, wealth managers, and many others — are legally required to conduct customer due diligence as part of their FICA compliance obligations. AVS checks form a standard part of that due diligence process, validating the financial information associated with a customer's identity and flagging discrepancies that may indicate fraud or money laundering.

Failure to conduct appropriate due diligence — including AVS checks where required — can expose an Accountable Institution to serious regulatory consequences, including significant financial penalties and, in the most severe cases, criminal prosecution.

Real-Time AVS vs Batch AVS: What is the Difference?

AVS checks can be conducted in two formats, each suited to different operational needs.

Real-time AVS involves the instant verification of a single bank account at the point of need — for example, during a customer onboarding process, at the moment a supplier submits new payment details, or when a loan application is received. Real-time AVS is well-suited to workflows where individual verifications need to be processed immediately and where a fast result is necessary to maintain an efficient customer or partner experience.

Batch AVS involves the submission of a large dataset of bank account details for verification in a single operation. This is commonly used by businesses that need to verify the accounts of a substantial portion of their customer or supplier base at once — for example, as part of a routine ongoing monitoring procedure to confirm that all account details on record remain accurate, active, and legitimately owned. Batch AVS is particularly valuable for large financial institutions, payroll operations, and businesses managing extensive supplier networks.

Which South African Banks Does ThisIsMe's AVS Solution Support?

ThisIsMe's AVS solution provides comprehensive coverage across South African banking institutions, ensuring accurate and current results for every verification.

The following banks are supported by both real-time AVS and batch AVS:

• ABSA
• First National Bank (FNB)
• Rand Merchant Bank (RMB)
• Nedbank
• Standard Bank
• Capitec Bank
• African Bank
• Investec Bank
• Sasfin Bank
• Discovery Bank
• Grindrod Bank
• Finbond Net 1
• Tyme Bank
• Unibank.

The following banks are additionally supported for batch AVS processing:

• Mercantile Bank (Capitec Business)
• Bidvest Bank
• Access Bank.

Bank AVS Solutions for South African Businesses

As South Africa's leading provider of world-class identity verification, KYC, and due diligence solutions, ThisIsMe empowers businesses to verify bank account ownership instantly and accurately — for both individuals and corporate entities, in real time and at scale. Whether your business processes a handful of verifications each month through our Partners Platform, or thousands of checks daily through our automated API, ThisIsMe provides the tools you need to prevent payment fraud, meet your FICA compliance obligations, and place trust in every transaction. To experience our full suite of AVS and due diligence solutions and find out how we can serve your business, contact our team here.