New high-friction savings account designed to fight fraud
Austin Capital Bank launched its high-friction Fort Knox High Security Savings Account today to slow down fraud.
The savings account, delivered as an app, has been in the works for five years and is designed to foil fraudsters, Chief Executive Erik Beguin told Bank Automation News.
The Fort Knox High Security Savings Account (HSSA) app, which is a division of $503 million Austin Capital Bank and backed by the FDIC-insured bank, may be used by any consumer, not just Austin Capital Bank clients, Beguin said.
Fraud increased 25% year over year in 2024 to $12.5 billion, according to Federal Trade
Commission data.
“You shouldn’t be able to access your savings on a whim ,” Beguin said. And with Fort Knox , you can’t.
The account doesn’t allow for next-day or same-day ACH, same day wires or instant transfers, he said.
“We actually intentionally introduce friction to keep your money safe,” he said.
As an added security layer, Fort Knox account numbers are alphanumeric and incompatible
with external funds transfer or payment systems, Beguin said.
…continued at: https://bankautomationnews.com/allposts/risk-security/new-high-friction-savings-account-designed-to-fight-fraud/