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“Recipient Confirmation” will be more available

Payments Systems Regulator (PSR) wants a wider implementation of fraud prevention tools.

Recipient Confirmation (CoP) to reduce approved push payment (APP) fraud in bank transfers by ensuring that the name of the recipient’s account matches the details the payer provided to the bank. Is designed for. The name check tells the payer if they match. This means that people can find it easier if something is wrong.

Thousands of people are victims of APP scams each year. You will be tricked into sending money to an account managed by a scammer. According to the latest figures, in the first half of 2021, APP fraud lost £ 355m, outpacing card fraud.

Recipient verification also helps prevent false payments by someone entering the wrong account number in the sort code.

NS Name check system was introduced in July 2020 Adopted by the UK’s largest banking group for Faster Payments and CHAPS transactions. However, despite the fact that many banks have registered, not all banks were obliged to register for the service.

According to the PSR, there are currently over one million beneficiary confirmation requests daily, and regulators are calling for more widespread beneficiary confirmation.

Chris Hemsley, Managing Director of PSR, said: To protect their customers. The work being done to expand CoP services means that more fraudulent and erroneous payments need to be prevented.

“Currently, the service is well-developed, but we will intervene as needed, even if progress seems to be stagnant.”

Gareth Show, which one? Moneyhead said: “Many banks are currently taking beneficiary verification measures, but regulators need to require all payment providers as soon as possible to ensure that all consumers benefit from the same level of security. there is.

“Which? Some providers rely on voluntarily using this important name-checking security to regulate the remaining gaps that scammers are exploiting to scam victims. I am warning the authorities.

“The level of fraud is the highest ever, and recipient confirmation does not diminish the urgent need for a system of compulsory rules so that victims are treated fairly and consistently. The government regulates. We need to take the necessary steps quickly to remove the barriers that get in the way of the authorities and introduce simple reimbursement obligations to all companies using faster payments. ”

“Recipient Confirmation” will be more available

Source link “Recipient Confirmation” will be more available

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