UK-based banks to launch Confirmation of Payee to avoid fraud

Wednesday 10 June 2020 12:58 CET | News

UK-based banks have announced the launch of a new Confirmation of Payee system that checks the name of the person you’re transferring money to with the name on the account.

Previously for most bank-to-bank transfers the name field was practically ignored, with only the sort code and account number used to route payments. This allowed fraudsters to pose as organisations or individuals to deceit people to transfer them money, with no way of checking who the money was being sent to.

The method often used by criminals is to call victims pretending to be calling from their bank and tell them that their account had been compromised and to transfer their funds into a ‘safe’ account. The new system will check the names involved in the transaction, and if the match isn’t exact, the full name of the account holder will be revealed.

Each bank will have to add Confirmation of Payee by 30 June 2020, and both banks involved in a transaction must be signed up for it to work. 

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Keywords: UK, Confirmation of Payee, banking, fraud, bank-to-bank transfers, money transfer
Categories: Banking & Fintech | Digital Identity, Security & Online Fraud
Countries: United Kingdom
This article is part of category

Banking & Fintech