Authorised push payment fraud is a real and growing issue, with consumer group Which? recently making it the subject of a super complaint. This type of fraud happens where a fraudster tricks a consumer into sending them a bank transfer to their account, instead of its intended destination. Because these real-time payments are irrevocable, it’s impossible for the victim to reverse the transaction once they realise they have been deceived. Data from UK Finance shows there were 43,875 cases of this type of fraud and total losses of £236 million last year. In order to reduce the risk of such fraudulent payments being made, the banking sector is launching a new ‘confirmation of payee’ system.
Confirmation of payee to tackle rising payment fraud problem
This 897 word blog post explains the new confirmation of payee system being introduced by banks to reduce the risk of authorised push payment fraud by confirming the name of the receiving bank account matches the name you have entered in your online banking transfer instruction. Includes a comment from Paul Horlock, Chief Executive of Pay.UK. Written on 21st October 2018.
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