diff --git a/fineract-provider/src/integrationTest/java/org/apache/fineract/integrationtests/interoperation/InteropHelper.java b/fineract-provider/src/integrationTest/java/org/apache/fineract/integrationtests/interoperation/InteropHelper.java
index 95669e161..0f4103e01 100644
--- a/fineract-provider/src/integrationTest/java/org/apache/fineract/integrationtests/interoperation/InteropHelper.java
+++ b/fineract-provider/src/integrationTest/java/org/apache/fineract/integrationtests/interoperation/InteropHelper.java
@@ -322,6 +322,16 @@ public class InteropHelper {
         return response;
     }
 
+    public String postTransferMissingAction(String transferCode, InteropTransactionRole role) {
+        String url = buildUrl(TRANSFERS_URL);
+        String request = buildTransferJson(transferCode, role);
+        LOG.debug("Calling Interoperable POST Transfer: {}, body: {}", url, request);
+
+        String response = Utils.performServerPost(requestSpec, responseSpec, url, request, null);
+        LOG.debug("Response Interoperable POST Transfer: {}", response);
+        return response;
+    }
+
     private String buildTransferJson(String transferCode, InteropTransactionRole role) {
         HashMap<String, Object> map = new HashMap<>();
         map.put(InteropUtil.PARAM_TRANSACTION_CODE, transactionCode);
diff --git a/fineract-provider/src/integrationTest/java/org/apache/fineract/integrationtests/interoperation/InteropTest.java b/fineract-provider/src/integrationTest/java/org/apache/fineract/integrationtests/interoperation/InteropTest.java
index e928425fe..d54acf4bf 100644
--- a/fineract-provider/src/integrationTest/java/org/apache/fineract/integrationtests/interoperation/InteropTest.java
+++ b/fineract-provider/src/integrationTest/java/org/apache/fineract/integrationtests/interoperation/InteropTest.java
@@ -100,6 +100,14 @@ public class InteropTest {
         interopHelper = new InteropHelper(requestSpec, responseSpec, savingsExternalId, transactionCode);
     }
 
+    @Test
+    public void testValidateAction() {
+        interopHelper.setResponseSpec(responseClientErrorSpec);
+        interopHelper.postTransferMissingAction(UUID.randomUUID().toString(), InteropTransactionRole.PAYER);
+        interopHelper.postTransfer(UUID.randomUUID().toString(), null, InteropTransactionRole.PAYER);
+        interopHelper.setResponseSpec(responseSpec);
+    }
+
     @Test
     public void testInteroperation() {
         createClient();
diff --git a/fineract-provider/src/main/java/org/apache/fineract/infrastructure/core/data/DataValidatorBuilder.java b/fineract-provider/src/main/java/org/apache/fineract/infrastructure/core/data/DataValidatorBuilder.java
index f48d3275e..d35d724e2 100644
--- a/fineract-provider/src/main/java/org/apache/fineract/infrastructure/core/data/DataValidatorBuilder.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/infrastructure/core/data/DataValidatorBuilder.java
@@ -26,6 +26,7 @@ import java.util.Arrays;
 import java.util.List;
 import java.util.regex.Matcher;
 import java.util.regex.Pattern;
+import java.util.stream.Collectors;
 import net.fortuna.ical4j.model.property.RRule;
 import net.fortuna.ical4j.validate.ValidationException;
 import org.apache.commons.lang3.StringUtils;
@@ -300,6 +301,11 @@ public class DataValidatorBuilder {
         return this;
     }
 
+    public DataValidatorBuilder isOneOfEnumValues(Class<? extends Enum<?>> e) {
+        final List<String> enumValuesList = Arrays.asList(Arrays.stream(e.getEnumConstants()).map(Enum::name).toArray(String[]::new));
+        return isOneOfTheseStringValues(enumValuesList);
+    }
+
     public DataValidatorBuilder isOneOfTheseStringValues(final Object... values) {
         if (this.value == null && this.ignoreNullValue) {
             return this;
@@ -330,7 +336,9 @@ public class DataValidatorBuilder {
 
         final String valuesListStr = StringUtils.join(valuesList, ", ");
 
-        if (this.value == null || !valuesList.contains(this.value.toString().toLowerCase())) {
+        List<String> valuesListLowercase = valuesList.stream().map(String::toLowerCase).collect(Collectors.toList());
+
+        if (this.value == null || !valuesListLowercase.contains(this.value.toString().toLowerCase())) {
             final StringBuilder validationErrorCode = new StringBuilder("validation.msg.").append(this.resource).append(".")
                     .append(this.parameter).append(".is.not.one.of.expected.enumerations");
             final StringBuilder defaultEnglishMessage = new StringBuilder("The parameter ").append(this.parameter)
diff --git a/fineract-provider/src/main/java/org/apache/fineract/interoperation/api/InteropApiResource.java b/fineract-provider/src/main/java/org/apache/fineract/interoperation/api/InteropApiResource.java
index 10684bdcf..c74d7bcf0 100644
--- a/fineract-provider/src/main/java/org/apache/fineract/interoperation/api/InteropApiResource.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/interoperation/api/InteropApiResource.java
@@ -30,6 +30,8 @@ import io.swagger.v3.oas.annotations.responses.ApiResponse;
 import io.swagger.v3.oas.annotations.responses.ApiResponses;
 import java.time.LocalDateTime;
 import java.time.format.DateTimeFormatter;
+import java.util.ArrayList;
+import java.util.List;
 import javax.ws.rs.Consumes;
 import javax.ws.rs.DELETE;
 import javax.ws.rs.DefaultValue;
@@ -45,7 +47,10 @@ import javax.ws.rs.core.UriInfo;
 import org.apache.fineract.commands.domain.CommandWrapper;
 import org.apache.fineract.commands.service.PortfolioCommandSourceWritePlatformService;
 import org.apache.fineract.infrastructure.core.api.ApiRequestParameterHelper;
+import org.apache.fineract.infrastructure.core.data.ApiParameterError;
 import org.apache.fineract.infrastructure.core.data.CommandProcessingResult;
+import org.apache.fineract.infrastructure.core.data.DataValidatorBuilder;
+import org.apache.fineract.infrastructure.core.exception.PlatformApiDataValidationException;
 import org.apache.fineract.infrastructure.core.serialization.ApiRequestJsonSerializationSettings;
 import org.apache.fineract.infrastructure.core.serialization.DefaultToApiJsonSerializer;
 import org.apache.fineract.infrastructure.security.service.PlatformSecurityContext;
@@ -365,6 +370,17 @@ public class InteropApiResource {
             @ApiResponse(responseCode = "200", description = "OK", content = @Content(schema = @Schema(implementation = InteropTransferResponseData.class))) })
     public String performTransfer(@QueryParam("action") @Parameter(description = "action") String action,
             @Parameter(hidden = true) String quotesJson, @Context UriInfo uriInfo) {
+
+        final List<ApiParameterError> dataValidationErrors = new ArrayList<>();
+        final DataValidatorBuilder baseDataValidator = new DataValidatorBuilder(dataValidationErrors).resource("InteropApi");
+
+        baseDataValidator.reset().parameter("action").value(action).notNull().isOneOfEnumValues(InteropTransferActionType.class);
+
+        if (!dataValidationErrors.isEmpty()) {
+            throw new PlatformApiDataValidationException("validation.msg.validation.errors.exist", "Validation errors exist.",
+                    dataValidationErrors);
+        }
+
         CommandWrapper commandRequest = new InteropWrapperBuilder().performTransfer(InteropTransferActionType.valueOf(action))
                 .withJson(quotesJson).build();