Negative Verification

Written By
Paul Tracy
Updated July 26, 2021

What is Negative Verification?

Negative verification is a bank method for verifying bank records.

How Does Negative Verification Work?

For example, let's assume Bank XYZ is performing an internal audit of the computer system that generates customers' monthly bank statements. To spot check the accuracy of the system, Bank XYZ might perform several tests, including contacting former and current customers. Bank XYZ might provide the customers with information it has on record for the customers and ask the customers to respond only if that information is incorrect.

Why Does Negative Verification Matter?

Negative verification is often part of detecting fraud or identity theft, but it often puts the onus on the bank rather than the customer. With positive verification, the customer must initiate the contact with the bank if there are any suspected account mistakes; negative verification requires the bank to initiate the contact.

Activate your free account to unlock our most valuable savings and money-making tips
  • 100% FREE
  • Exclusive money-making tips before we post them to the live site
  • Weekly insights and analysis from our financial experts
  • Free Report - 25 Ways to Save Hundreds on Your Monthly Expenses
  • Free Report - Eliminate Credit Card Debt with these 10 Simple Tricks
Ask an Expert
All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Negative Verification.
Be the first to ask a question

If you have a question about Negative Verification, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

If you have a question about Negative Verification, then please ask Paul.

Ask a question Read more from Paul
Paul Tracy - profile
Ask an Expert about Negative Verification

By submitting this form you agree with our Privacy Policy

Don't Know a Financial Term?
Search our library of 4,000+ terms