Unverified participants in complex, high-value finance transactions—like municipal bond closings—open the door to serious fraud, with potentially massive costs and legal consequences. Consider these data-driven realities:
- According to a 2024 report, 98% of B2B businesses reported experiencing fraud attacks, underlining how widespread identity threats have become in business-to-business environments.
- In the municipal bond world, where anti-fraud provisions under federal securities laws are strictly enforced, failure to properly verify all participants can lead to costly enforcement actions, liability claims from misrepresentation, and reputational harm.
Bottom line: Skipping identity verification isn’t a minor risk — it creates a serious vulnerability in today’s environment of fast‑evolving fraud tactics.
Transaction participants acting on behalf of organizations are frequent targets for fraud — even experienced professionals.
This makes Identify Verification a foundational component of Basefund's Enhanced Security process.
When you're asked to verify your identity as part of a transaction, it may be natural to wonder: "Why do I need to provide personal information if I’m acting on behalf of my company?"
Verifying identities not only confirms that the invitation to the transaction hasn't fallen into the wrong hands, it ensures that all participants aren't unknowingly compromised.
1. Why Identity Verification Matters for You
Providing personal details doesn’t mean you’re taking on more personal risk. Identity verification isn’t about shifting liability — it’s about safeguarding your role. It confirms that you, and only you, are acting in your authorized capacity.
Identity verification is a one-time, secure validation focused on authenticity and active risk signals. Specifically, it checks:
- That your ID is legitimate and presented live (via a live document probe, not a static upload)
- That your identity isn’t showing patterns associated with fraud, identity theft, or misuse across verified data sources
That adds protection not just for the transaction, but for you personally — especially if your information has ever been unknowingly compromised.
Your data is processed by our third‑party partner using bank‑grade security and securely discarded per their retention policy — not stored by Basefund.
2. Keep the Wrong People Out — and Your Transaction Intact
Think of identity verification like visiting an office location. A security guard has a list of authorized visitors but must confirm their identity before granting access.
Basefund works the same way. By verifying each participant, uninvited actors are prevented from entering the transaction. That protects the integrity of your deal from day one.
3. Risk Grows with Every Participant — So Should Verification
In bond closings and other complex financial deals, dozens of firms and stakeholders come together. Every participant introduces a potential point of risk. Identity verification reduces that surface area.
It ensures each person is verified in real time and not unknowingly compromised. In high-stakes, multi-party environments, that certainty helps prevent fraud from slipping through the cracks.
4. The Link Between Verification and Insurance
Basefund’s Transaction Insurance requires identity verification. Without it, transaction disbursements aren't insurance-qualified.
- Base Security (always included)
- MFA login, account validation, audit tracking, workflow controls
- Enhanced Security (Base + identity verification + transaction insurance)
- Enhanced Security builds on Base Security with ID verification and transaction insurance. Coverage is per wire/disbursement and only applies when all participants on that payment are verified.
Bring clarity and accountability to every transaction.
With everyone operating in the same secure process, there are no gaps or back doors.
Identity verification reinforces that transparency and materially reduces fraud risk—so transactions move forward with clarity and confidence.
Ready to take your transaction security to the next level? Get started with Basefund ➔
