# Plaid and ID.me stop benefits fraud at the bank account

> A new partnership verifies that benefit payments actually reach the right person's bank account, not a fraudster's.
- Title: Plaid and ID.me stop benefits fraud at the bank account
- Summary: A new partnership verifies that benefit payments actually reach the right person's bank account, not a fraudster's. Plaid and ID.me's partnership closes a…
- Keywords: plaid, id.me, digital identity, benefits payments, identity verification, bank account verification, unemployment insurance, government agencies, fraud prevention, direct deposit, financial disbursements, business
- Source: Pymnts — https://pymnts.com/authentication/digital-identity/2026/plaid-id-me-team-strengthen-benefit-payment-id-checks
- Author: PYMNTS
- Published: 2026-09-17T20:40:06+00:00
- Read time: 1 min
- Topics: plaid, id.me, digital identity, benefits payments, identity verification, bank account verification, unemployment insurance, government agencies, fraud prevention, direct deposit, financial disbursements, business
## Plaid and ID.me join forces
The two companies launched a partnership to combine ID.me's digital identity wallet with Plaid's financial account verification tools for government benefit payments.
## The identity gap that costs billions
Agencies can verify who is asking for benefits, but they can't confirm where the money actually goes. A claimant can pass identity checks and then provide someone else's bank account.

> Identity verification tells an agency who is asking to be paid, but it does not tell them where the money is going.
## Improper payments hit 5.6 billion
Improper unemployment insurance payments totaled 5.6 billion dollars in fiscal year 2025, a rate of 14.9 percent and the fourth consecutive year above the federal standard.
## Paper checks slow everything down
Current verification relies on mailed voided checks and manual review queues that take days or weeks, forcing agencies to choose between catching fraud and paying eligible people quickly.
## Real-time verification, instant enrollment
With the partnership, eligible claimants can enroll in direct deposit in minutes by linking their financial account within the existing application flow. Agencies continue using their current payment processors.
## Digital identity verification still inconsistent
A PYMNTS Intelligence report found that 76 percent of financial firms generate most revenue through digital channels, yet 74.6 percent said their verification technology produces inconsistent results.
## Key takeaway

Plaid and ID.me's partnership closes a critical gap: confirming a recipient's identity is only half the battle. The real fraud happens when money gets sent to the wrong account. This integration lets agencies verify the account belongs to the verified person before any money moves.