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.  

Fort Knox, 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.

Adding friction

Fraud increased 25% year over year in 2024 to $12.5 billion, according to Federal Trade Commission data.  

With increased fraud, the Fort Knox HSSA introduced increased friction, he said. “We actually intentionally introduce friction to keep your money safe,” he said. 

“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.  

As an added security layer, Fort Knox account numbers are alphanumeric and incompatible with external funds transfer or payment systems, Beguin said. 

Intelligent closed-loop protection

So, how does it work?  

Using open banking, consumers can link one external bank account to their Fort Knox account using Plaid or Finicity, Beguin said. 

The only way to get money into or out of a Fort Knox account is through that one linked account, he said.  

The approach is called intelligent closed-loop protection, which is a patent-pending innovation, he said. 

“Fort Knox is like a one-way road with a bank with a vault, with a safety deposit box in that bank,” Beguin said.