DEFINITION of 'Proof Of Funds - POF'
A document that demonstrates that a person has the ability and funds available to use for a transaction. It usually comes in the form of a bank, security or custody statement. The purpose of the document is to ensure that the funds required for the transaction are obtainable and legitimate.
BREAKING DOWN 'Proof Of Funds - POF'
Some con artists who are planning a financial scam will request a proof of funds. They want to make sure that they are concentrating their efforts on someone with significant financial worth. Therefore, it is important to make sure that you only give proof of funds to trusted individuals whom you have thoroughly investigated.