To all those online banking users in the UK, here’s some news to rejoice. At last the banking association in the UK has given a nod to implement ‘Name Check Safeguard’ feature from next year to help fight fraud and alert bank customers to suspicious transactions.
Now, to those who aren’t aware of this feature- here’s a gist. In simple terms, it is a new ‘confirmation of payee’ service which helps in tackling unauthorized payment frauds- where innocent victims are tricked to make a bank transfer directly to a cyber crook.
Hence, with this feature, a payee can check whether the payment made by them to a person or business is going to the right person. This feature will prove extremely helpful when someone is making a payment to a person or business for the first time. If the name matches, then the confirmation will be provided by a green tick and then the transaction gets forwarded.
Note- Figures gathered by trade association UK finance say that in the 1st half of 2018 consumers lost £92.9 million to APP (Authorized Push Payment) fraud.
If the details of the payment receiver do not match, then the payee may choose to defunct the transaction which will help in curbing payments being made to fraudsters and accidental mistakes.
Paul Hurlock, the Chief Executive of the new payment body Pay.UK says that the move will reduce the risk of errors and payment frauds such as malicious redirection of funds with invoice scams.
But what’s interesting about this move is that if the name doesn’t match it is up to the sender to send the money as the banking authorities do not have the right to delay or dislodge the payment.