A brand new name-checking service being adopted by banks will give individuals transferring cash extra certainty that it is being despatched to the suitable particular person.
The transfer ought to make it tougher for fraudsters to trick individuals into transferring cash to them by pretending to be another person.
The Fee Methods Regulator (PSR) stated the “affirmation of payee” service will give individuals the extra safety of checking the identify of who they wish to pay towards the account quantity they’re paying cash into.
Main banks and constructing societies – Bank of Scotland, Barclays, HSBC UK, Lloyds Bank, NatWest, Nationwide Constructing Society, Royal Bank of Scotland, Santander UK and Ulster Bank – have adopted it.
The regulator stated that in 95% of circumstances the place a brand new payee is about up, the shopper could have the protections of affirmation of payee. It stated the initiative marks a big milestone in serving to to cut back authorised push cost scams, the place criminals fake to be from a professional organisation, in addition to chopping the chance of funds being by accident despatched to the mistaken particular person.
Banks will have the ability to verify the identify on a payee’s account towards the type code and account quantity.
In August 2019, the PSR used its regulatory powers to direct members of the UK’s greatest banking teams to implement affirmation of payee by the tip of March 2020. However amid the stress on companies as a consequence of Covid-19, the regulator stated it might not take formal motion till the tip of June.
The PSR has additionally seen the primary non-directed banks introduce affirmation of payee, with Monzo and Starling having began to introduce the complete service to their prospects.
Chris Hemsley, managing director of the PSR stated: “The widespread implementation of this extra identify checking supplies a brand new, added layer of safety for customers. In addition to serving to cease fraudsters from committing devastating crimes, it’ll additionally assist individuals keep away from paying the mistaken particular person by accident.”