JP Morgan Chosen to Offer Account Validation Services to US Federal Agencies

JP Morgan has been chosen by the US Treasury Department to offer account validation services to federal government agencies. This selection follows a competitive process and has resulted in a financial agency agreement between the two entities, valid for at least five years.

As part of this agreement, JP Morgan will employ its advanced technology and access to secure customer information, in addition to industry data commonly used in payment processing, to confirm vital payment information for the federal government before disbursements are made.

"This is a significant testament to our capabilities and it is particularly gratifying that this work will help to provide money to Americans faster, safer, and more accurately while also saving taxpayer dollars."

Last year, the US government disbursed a total of $5.27tr in payments to federal agencies, including Social Security and Medicare payments, unemployment insurance, and tax refunds.

Improper payments due to fraud or clerical errors may delay the delivery of funds to due recipients, leading to financial losses and loss of public trust in government.