This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/money/2018/oct/18/banks-to-check-account-names-to-beat-transfer

The article has changed 5 times. There is an RSS feed of changes available.

Version 3 Version 4
Banks to check account names to beat transfer fraud Banks to check account names to beat transfer fraud
(2 months later)
Name checks will be carried out when UK bank customers send money to other people from next year in a bid to halt a rising tide of bank transfer fraud.Name checks will be carried out when UK bank customers send money to other people from next year in a bid to halt a rising tide of bank transfer fraud.
At the moment, anyone wanting to transfer money is asked for the recipient’s account name, account number and sort code. However, the bank does not currently check if the account name is correct.At the moment, anyone wanting to transfer money is asked for the recipient’s account name, account number and sort code. However, the bank does not currently check if the account name is correct.
In recent years, fraudsters “have become increasingly sophisticated in using this to trick people into sending money to the wrong account,” said the UK’s payments operator, Pay.UK.In recent years, fraudsters “have become increasingly sophisticated in using this to trick people into sending money to the wrong account,” said the UK’s payments operator, Pay.UK.
It added that the new measures should help prevent many fraudulent payments from being made by “introducing another hurdle” for criminals and issuing effective warnings about the risks of sending money to an account where the name does not match.It added that the new measures should help prevent many fraudulent payments from being made by “introducing another hurdle” for criminals and issuing effective warnings about the risks of sending money to an account where the name does not match.
From next year, the so-called “confirmation of payee” system will mean customers can check they are paying the right person.From next year, the so-called “confirmation of payee” system will mean customers can check they are paying the right person.
When a customer sets up a new payment or amends an existing one, there will be three possible outcomes. If they used the correct account name, they will receive confirmation that the details match, and can proceed with the payment.When a customer sets up a new payment or amends an existing one, there will be three possible outcomes. If they used the correct account name, they will receive confirmation that the details match, and can proceed with the payment.
If they used a similar name to the account holder, they will be provided with the actual name to check. They can then update the details and try again, or contact the intended recipient to check the details. But if the customer enters the wrong name for the account holder, they will be told the details do not match and advised to contact the person or organisation they are trying to pay.If they used a similar name to the account holder, they will be provided with the actual name to check. They can then update the details and try again, or contact the intended recipient to check the details. But if the customer enters the wrong name for the account holder, they will be told the details do not match and advised to contact the person or organisation they are trying to pay.
In the past few years, fraud in the UK payments industry has soared as criminals develop increasingly sophisticated tactics to steal cash. Criminals have been hacking into the email accounts of builders, solicitors or other tradespeople that the consumer has legitimately employed, then getting them to send large amounts of money to criminal accounts.In the past few years, fraud in the UK payments industry has soared as criminals develop increasingly sophisticated tactics to steal cash. Criminals have been hacking into the email accounts of builders, solicitors or other tradespeople that the consumer has legitimately employed, then getting them to send large amounts of money to criminal accounts.
The Guardian has featured a number of these cases, which are also known as “authorised push payment” scams or email intercept fraud. In October 2017 it emerged that an Essex couple lost £120,000 after sending money to what they thought was their solicitor’s bank account.The Guardian has featured a number of these cases, which are also known as “authorised push payment” scams or email intercept fraud. In October 2017 it emerged that an Essex couple lost £120,000 after sending money to what they thought was their solicitor’s bank account.
It is understood the new regime is expected to be in place for many, but not all, banks by the middle of 2019.It is understood the new regime is expected to be in place for many, but not all, banks by the middle of 2019.
Gareth Shaw from the consumer group Which? said: “It’s right that banks and building societies have finally been forced to introduce this much-needed check at the point of transfer.Gareth Shaw from the consumer group Which? said: “It’s right that banks and building societies have finally been forced to introduce this much-needed check at the point of transfer.
“However, customers will wonder why banks have dragged their heels and not implemented this system years ago.”“However, customers will wonder why banks have dragged their heels and not implemented this system years ago.”
Current accountsCurrent accounts
Consumer affairsConsumer affairs
ScamsScams
BankingBanking
Banks and building societiesBanks and building societies
Identity fraudIdentity fraud
CrimeCrime
Share on FacebookShare on Facebook
Share on TwitterShare on Twitter
Share via EmailShare via Email
Share on LinkedInShare on LinkedIn
Share on PinterestShare on Pinterest
Share on Google+
Share on WhatsAppShare on WhatsApp
Share on MessengerShare on Messenger
Reuse this contentReuse this content