Australian Payments Plus (AP+) has developed and launched Confirmation of Payee, a name-matching service designed to help fight scams and protect customers.
The Australian Banks invested USD 100 million in this tech as an initiative of the sector’s Scam-Safe Accord, a set of rules by the banks to help keep Australians’ finances safe. AP+ designed the service to reduce scams and mispayments by verifying if the name, BSB, and account number match the details held by the receiving bank, and showing the results before a payment is made.
New fraud prevention solutions for Australians
AP+ aims to give customers greater control and trust when making payments, adding an extra layer of protection for everyday transactions. The Australian Banking Association mentions that, even though the country’s scam losses are decreasing, investing further in the latest fraud prevention technology is crucial to driving losses even lower and protecting customers from participating in and losing money to scams.
Once the launch is complete, Australia’s customers will be protected regardless of who they choose to bank with. This reflects the country’s commitment to safety and customer protection. Its mutual banks are currently working to protect their clients’ money through the Confirmation of Payee service. Customer-owned banks are committed to a client-first approach, developing their defences to offer effective fraud detection and protection services.
The solution activates when a customer makes a first-time purchase using a BSB and account number. They enter the account name and payment details and, before approving the transaction, a matching service checks if the information matches the recipient’s bank data. If the details match, the account name will be displayed for confirmation. If there is a close match, the customer can see the account name and confirm if it's correct. In the third option, when there is no match, the client will be shown a warning without disclosing the account name, for privacy reasons.
For businesses and government accounts, the name may still be shown. Utilising the information, the client can then decide id they would like to go ahead and make the payment, pause and check the details again, or cancel the transaction altogether.
