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.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now