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Paul Tracy

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Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers. While there, Paul authored and edited thousands of financial research briefs, was published on Nasdaq. com, Yahoo Finance, and dozens of other prominent media outlets, and appeared as a guest expert at prominent radio shows and i...

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Updated October 31, 2020

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.

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At InvestingAnswers, 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.
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