Counterparty Checks: How to Verify Who You Deal With

A counterparty is anyone on the other side of your deal. You send money. You sign a contract. You trust details on a screen.

Most people verify nothing. They rely on a logo and a friendly email. That is how losses begin.

This guide covers the checks an ordinary person can run. It is general information, not personal advice.

Why counterparty checks matter

Money moves fast. Scams move faster. A wire often cannot be recalled once it lands.

Australian businesses lost money to payment redirection scams across recent years. The pattern repeats. A real invoice arrives. The bank details look slightly different. The money goes to a stranger.

A counterparty check breaks that chain. You confirm who you are dealing with first. You then confirm where the money goes.

A bank account name that does not match the registered company name is a stop sign, not a detail to gloss over.

The three things you are verifying

You are checking three separate things. People blur them together and miss the gap.

• Identity. Is this person who they claim to be?
• Entity. Does this company legally exist?
• Payment. Do these bank details belong to that entity?

A real person can front a fake company. A real company can have hijacked email. Check each layer on its own.

How to verify a business

Start with the official register for the country involved. Most countries publish one.

In Australia, you can search the ABN Lookup service and ASIC registers. These are free. They show whether an entity is registered and current.

Match what you find to what you were told. The trading name, the address, and the directors should line up. Small mismatches deserve questions.

A simple verification checklist

Run the checks before the first payment. Repeat the bank check if details change.

Reading the warning signs

Scammers create pressure. They want you to skip the checks. Pressure itself is a signal.

Watch for these patterns:

• A sudden change to bank details near payment time.
• Urgency that has no clear business reason.
• A reluctance to take a phone call on a known number.
• Email addresses with small spelling changes.
• Requests to pay a new account “this once”.

None of these prove fraud on their own. Together they raise the risk. Slow down when you see them.

Verify changes on a known channel

Email can be hijacked. So can a phone number printed in an email.

If payment details change, confirm on a channel you already trust. Call the number you used last month, not the one in the new message. Speak to a named person.

This single habit stops many redirection scams.

Keep a record of every check

Write down what you checked and when. Save the register screenshots. Note who you spoke to.

A record helps in three ways. It slows you down at the right moment. It supports a claim if something goes wrong. It shows a pattern if a dispute follows.

Good records cost little. They protect a lot.

When to get help

Some deals carry size or complexity that warrants support. Large cross-border payments often do.

A professional can structure the checks and review the contract terms. We help people set up that process. We do not give personal financial advice on this page.

Verify first. Pay second. Keep the record either way.