26 Oct 2018
Banks across the United Kingdom are to soon begin checking names on payments they process, in an effort to combat fraudulent transactions across the sector.
At present, banks check the account number and sort code but not the names when money is being transferred, the BBC reports, adding that under new plans, the sender ‘will be alerted if the name does not match,’ and the transaction could be blocked if the details are not ammened.
The “confirmation of payee” system is designed to combat cases where fraudsters try to trick individuals to make payments into an account they control.
Under the new system, banks will check the name on the account before processing a transaction.
If the correct name is entered, the payment will proceed. However, if one uses a name similar to the account holder, the bank will provide the actual name, which can be then amended.
If a wrong name is entered, the transaction will not proceed – in such cases the bank will state that the details do not match.
Gareth Shaw of Which? said: “Customers will wonder why banks have dragged their heels and not implemented this system years ago, as it could have prevented a significant amount of fraud.
“With losses to bank transfer fraud increasing drastically it’s clear this measure can’t come in soon enough.”
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