Its ok to reject, refuse or ignore any requests. A payee is the term used to describe the person or business that you are paying money to. The Confirmation of Payee service gives you greater security when youre making payments. Features, Confirmation of Payee will be a powerful tool in industries such as lending. Use the name, sort code and account number stated on the customer invoice or payment instructions, if these have changed businesses should validate the change with the intended payee using known contact details. Times of crisis like COVID-19 provide even more opportunities for fraudsters, with the sudden and widespread transition to home working. a published telephone number on an official website, particularly if they have been asked to pay an amended or new account. The system automatically checks the recipient's account name against the details held by their bank. If a customer is unsure about how Confirmation of Payee will affect them or have any questions, they should contact their account provider or look at their website. Businesses are then tricked into sending money to an account controlled by the fraudster rather than the genuine supplier. accounting, Must-have skills for preparing for the future of accounting, Insights, This does not necessarily mean that a fraud is being attempted, it may be simply that the account is not on the system. Certain accounts provided by these institutions may be exempt from the PSRs requirement and other institutions are working to bring in this important protection at the earliest opportunity. Help available for businesses and customers, Our specialists provide an unmatched breadth and depth of knowledge, We address the major issues impacting our members, We provide comprehensive data and research, We offer an extensive range of events and training courses, We work with members to support the UK as a global leader in financial services, We receive substantial coverage in national, regional, specialist and trade media. Confirmation of Payee is a name-checking service that has been identified by the PSR and payments industry as an important tool to help prevent APP fraud and accidentally misdirected payments. Following the delay to Confirmation of Payee standards in the UK, Chris Stephens, head of banking solutions at identity authentication firm Callsign, gives his perspective on the schemes prospects for fighting payment fraud. The user should always stop and question the payment if anything else about the situation seems suspicious. The UKs six largest banking groups, covering 90% of bank transfers, must fully implement Confirmation of Payee (CoP) by 31 March 2020. Customers are the front line of defence against fraud and should ensure they keep their information up to date. Customers and businesses should not proceed with a payment if any of the details do not match. At this stage, it could be possible that the customer is being targeted by criminals and the payment is being requested for fraudulent purposes. If a business entered details for the named account holder which do not correspond with the details held by the account provider, it will be told the details do not match. Always seek the advice of the, Published date: estimates could have prevented 320m-worth of bank transfer fraud since 2017. Whatever the business model, we can fit our payments solution around you. The following types of businesses could benefit the most from implementing Confirmation of Payee: Fraud is a major problem for businesses and consumers, and its only likely to increase, as criminals constantly seek new ways to steal funds. The service checks whether the name of the account that a payer is Confirmation of Payee is reliable as it draws on the payee's bank data in real-time. What are the benefits of Confirmation of Payee? Maximise efficiency and reduce operational costs. No match, check before proceeding further. While some victims are able to bounce back from the consequences of fraud, for others the financial impact can be long-term or even life-changing. No, the Payment Systems Regulator has mandated participating banks to implement Confirmation of Payee for the setting up of new payments and the amending of details for existing payments through Faster Payments or CHAPS. If the user makes a mistake when manually entering the name, account number or sort code, Confirmation of Payee will detect this. Resolving fraud can be expensive and time-consuming, involving many entities. Neobanks are fighting two battles when it comes to fraud. Confirmation of Payee is set to be a key weapon in the fight against so-called authorised push payment fraud, which are scams where victims are tricked into transferring money directly to fraudsters. There are four main possible outcomes to the Confirmation of Payee check when a customer is making a payment: If the customer used the correct name of the account holder, they would receive confirmation from their provider that the details match. Confirmation of Payee will be a powerful tool in industries such as lending. Criminals can access or alter emails to make them look genuine. Registered address: 1 Angel Court, London, EC2R 7HJ UK Finance Limited (trading as UK Finance) 2021. Put payments at the heart of your platform, workflows and customer experiences within your software. Situations where the name does not match could well be a fraudulent transaction, a scam or a simple error. Your name may not be the same as the name on your bank card. UK fintech Modulr has today launched Confirmation of Payee (CoP), a fraud prevention initiative spearheaded by retail payments authority Pay.UK. These also include investing millions in sophisticated security technology, the Authorised Push Payment Scams Voluntary Code and the Take Five To Stop Fraud campaign in partnership with government. At the beginning of August 2019, the Payment Systems Regulator (PSR) issued a specific direction to the UKs six largest banking groups across all their brands (Barclays, HSBC including First Direct, Lloyds Banking Group, Nationwide Building Society, Royal Bank of Scotland Group and Santander UK) covering around 90 per cent of current accounts, to fully implement Confirmation of Payee by 31 March 2020. A significant proportion of these crimes is categorised as Authorised Push Payment (APP) Fraud. accounting. Payments to existing recipients and standing orders may not be checked using Confirmation of Payee although individual account providers may, in time, begin to check the details of existing recipients with Confirmation of Payee. Someone pressuring or coercing them to make a payment; A customer should never feel embarrassed or reluctant to check if the payee name is correct. In the meantime, if a receiving bank does not offer Confirmation of Payee then the paying customer will be advised that the recipient's (or payees) name is unable to be checked. This is when a person is tricked into authorising a payment to a criminals account, through social engineering or other means of manipulation. Across the UK, millions of consumers and businesses fall victim to fraud every year. If a customer enters details for the named account holder which do not correspond with the details held by the account provider, they will be told the details do not match. It is likely that the account name is the legal or trading name provided at the time of account opening or subsequently notified to the account provider after a change of name. [ii] While some victims are able to bounce back from the consequences of fraud, for others the financial impact can be long-term or even life-changing. They may habitually use a name that is different to the one registered to their account for example a maiden name, nickname or middle name. We urge customers to follow the Take Five To Stop Fraud advice. 2020 Modulr Finance Limited. It helps customers and businesses make payments safely by checking the name on an account before a new CHAPS, Faster Payment or Standing Order is set up. Whether developing or scaling new technologies, our partnerships help businesses grow faster and go further. Confirmation of Payee (CoP) is an account name-checking service introduced by Pay.UK to give businesses and consumers greater assurance that they are sending payments to their intended recipient.. The regulator provided the following instruction: Further guidance on how to stay safe from fraud and scams can be found on the Take Five to Stop Fraud website. At this stage, it could be possible that the business is being targeted by criminals and the payment is being requested for fraudulent purposes. If you are making a payment to an account for the first time, transfer a small sum first and then check with the company using known contact details that the payment has been received to check the account details are correct. Automate your payment flows, including receivables, payables, collections and disbursement. A number of other institutions are expected to introduce Confirmation of Payee at a later date. When setting up a new payment, your payment provider will be able to check the name of the person or organisation you give, against the actual name held on the account. Confirmation of Payee is designed to protect customers against payment fraud . The benefits of Confirmation of Payee for businesses. [i] The average amount lost in each incident was 2,760. The latest version is 20.2.20141.491. Alternatively, they will be able to update the details and try again or contact the intended recipient to confirm the details. This may not be the name they use. Provide the exact name registered to the account they are paying (typically a full first name and last name), as well as providing the same account details to an individual or business they wish to receive a payment from. Modulr estimates that every year, neobanks, spend more than 15k per million accounts. The Modulr API is the gateway into that network. Confirmation of Payee will allow customers to be able to enter more than 18 characters in the Payee name field in which to input the first and last name of the intended recipient or the business or company name. State whether the payment will be sent to a personal or business account Confirmation of Payee, a new name-checking service warning bank customers when a payees name doesnt match the account number provided, is due to be rolled out by the end of this month a measure Which? Customers and businesses should follow guidance given by their account provider and may wish to take additional steps to ensure that their payment is being made to the correct payee, particularly if they have been asked to pay an amended, or new, account. What is Confirmation of Payee and how does it prevent fraud? Lenders often rely on bank validation tools to protect themselves against fraud but these are expensive, can become outdated, and are easy for fraudsters to opt out of. a published telephone number on an official website. This outcome should become infrequent as more banks get on board with Confirmation of Payee. Its important to note that the account holders name registered to that account may not necessarily be the same name that is recorded on the corresponding bank card as different naming conventions may be used for card data. A growing number of consumers and businesses are now taking advantage of methods like. Confirmation Of Payee Nowhere To Be Seen In Final APP Code DATE PUBLISHED : FRIDAY, MARCH 1ST 2019 A financial industry framework to tackle particular types of fraud in the UK will come into effect in late May, it was announced late on Thursday, but the regulator has scrapped plans to implement the confirmation of payee system on April 1. Confirmation of Payee is being introduced by Pay.UK and Modulr this year for outbound payments, with inbound payments coming soon. Confirmation of Payee is a name checking service. Those institutions (including Bank of Scotland, Barclays, HSBC including First Direct, Lloyds Banking Group, NatWest, Nationwide, Royal Bank of Scotland, Ulster Bank, Santander) and their individual brands will now be introducing Confirmation of Payee between January to June 2020. You will know if you ask to be paid to your registered business name or a trading name. Confirmation of Payee provides a much more reliable and cost-effective alternative, as it draws on the payees bank data in real-time. In this instance, Confirmation of Payee will alert the user that the fraudsters account doesnt match the intended suppliers name. The banking and finance industry is committed to looking after every customer, especially those in vulnerable circumstances. Establish documented internal processes for requesting and authorising all payments and be suspicious of any request to make a payment outside of the companys standard process or for unusual amounts. View Profile View Forum Posts Private Message View Articles Join Date: Jun 2019 Posts: 1 Thumbs Up. Most providers have a confirmation step within the payment journey where the customer can check the amount before approving it and we strongly advise that customers follow this process. For example, a receiving bank must be able to notify the sending bank that there is not a match. They should always remember to stop, challenge and protect themselves, particularly when faced with: CoP unavailability does not necessarily mean that fraudsters are targeting your business, but that the payee account is not on the system. This is one of the many ways in which were working to keep you safe from fraud. More information on how to stay safe from fraud and scams is available on the Take Five website. So were launching a new service called Confirmation of Payee (CoP) that will ask you for their name as well. If a customer transfers an incorrect amount, they should contact their provider immediately who will be able to advise on next steps. Currently, sort codes and account numbers are used to determine where a payment is sent, but banks are unable to check names on beneficiary accounts. They should confirm the account details of the person or business they want to pay by an alternative method e.g. Certain accounts may be exempt from the PSRs requirement: if a business is unsure about whether they will benefit from this new functionality, they should contact their bank or building society. In 2019, consumers lost approximately 317m to APP fraud, up 39% from the previous year. Well introduce CoP this year. , giving businesses and consumers greater assurance that theyre sending payments to a legitimate account. If a customer thinks they need to change the name their account provider has registered, or is unsure of the name registered, the customer should discuss this with their account provider. Businesses should contact their bank straight away if they think they may have fallen victim to an invoice or mandate scam. The danger of APP fraud has been exacerbated by the rise of social media, which makes it easier than ever for criminals to do recon on their victims and perform convincing impersonation scams. Customers and businesses should always stop and make further checks if they do not get a match and confirm the account details of the person or business they want to pay by an alternative channel, e.g. If a business thinks they need to change the name their account provider has for their account, they should advise their account provider of the details to ensure they show on the business account before any new payments are made to the new name. Technological change is accelerating and regulations have struggled to keep up. The business may have to pursue their bank and the recipient bank to try and recall money, sometimes with no success. To commit the fraud, the criminal will either access the companys email system or use spoofing software to email a member of the finance team with what appears to be a genuine email from the CEO. Businesses should contact their financial provider(s) to understand when Confirmation of Payee may be available to them. Customers of banks and building societies that have signed up to the Code will be reimbursed if they meet the standards expected of them under the Code. Some firms are required to implement a Confirmation of Payee check for payments made to new recipients through Faster Payments or CHAPS. All customers and businesses should follow the Take Five fraud safety advice: Criminals are experts at impersonating people, organisations and the police. This name is typically their first name and last name. From 30 June 2020: Directed banks must send Confirmation of Payee requests (as above) and notify the payer of the outcome for example, if there was a name match or a mismatch, banks should notify the person making the payment. While these new forms of payment offer a wide range of benefits, users need to be wary of making mistakes as funds are transferred instantly and often irrevocably. As of today, there is now widespread coverage of the new fraud-prevention tool referred to as Confirmation of Payee (CoP) which gives people the additional protection of checking the name of who you want to pay against the account number you are paying. For example, a fraudster may submit a loan approval in someone elses name and have the loan disbursed to their own account. The original Payment System Strategy was targeting 2021 as the deadline for implementing Confirmation of Payee on a new payments platform. It is very important to follow the Take Five to Stop Fraud advice: Confirmation of Payee is being developed by account providers in line with their company policies on providing for these vulnerable customers and those with additional access needs. Personal customers should also ensure they provide the exact name registered to their account, as well as the sort code and account number, to anyone who needs to make a payment to them. Thread Tools . Confirmation of Payee is a new way of giving customers greater assurance that they are sending payments to the intended recipient, helping them to avoid making accidental, misdirected payments to the wrong account holder, as well as providing another layer of protection in the fight against fraud. We urge customers to follow the Take Five to Stop Fraud advice below: Businesses should consider using additional procedures for when they receive a close or negative match on a Confirmation of Payee request. The user should always stop and question the payment if anything else about the situation seems suspicious. Confirmation of Payee gives greater assurance that customer payments are going to the intended recipient. They may habitually use a name that is different to the one registered to their account, for example a maiden name, nickname or middle name. Confirmation of Payee (CoP) is a service that checks account names match up to their correspondent account numbers and sort codes, giving users greater assurance that theyre sendingpayments to a legitimate account. Payment requests from unknown persons; The lending sector is a prime target for fraudsters, so lenders need to be extra vigilant. The business will not be able to see the actual name on the non-matched bank account. Modulr has worked closely with Pay.UK to launch its Confirmation of Payee solution. Banks and other financial institutions introducing Confirmation of Payee have been communicating information about Confirmation of Payee to their customers via their usual communication channels. When a customer sets up a new payee or amends an existing payees details, they will be able to verify that the account belongs to the person or business they intend to pay before making the payment. Your name will be used in communications that your account provider has with you (such as a bank statement) and through your online or mobile banking applications. In 2019, consumers lost approximately 317m to APP fraud, up 39% from the previous year. UK Finance: 5th Floor, 1 Angel Court, London EC2R 7HJ. Always be wary if you are ever told to ignore a no match response. How to stay safe from CEO fraud: They spend hours researching your business for their scams, hoping you will let your guard down for just a moment. Often when you send a payment to a fraudster, it means a legitimate recipient (customer or supplier) is left waiting to receive their funds. The system was unable to verify the account name, typically because the recipients bank was not involved. Fraud is a major problem for businesses and consumers, and its only likely to increase, as criminals constantly seek new ways to steal funds. In some cases, businesses may use a trading name or a shortened name that may be different to the name held by the account provider as their account name. This should protect UK consumers and businesses from losing millions to APP fraud every year. Confirmation of Payee. For businesses, the benefits include: Reduced risk of fraud Less financial losses Less time investigating fraud Better customer experience. Ensure their customers and partners are aware of the need to use the correct details when making payments to them. When you create a single UK sterling payment or regular payment to someone for the first time, a check will be made on the name of the person or organisation, along with account type, you provide against the details held for that payee by their bank. It can also save operational costs by reducing the number of payments that need to be investigated or recalled. The customer can then proceed with the payment. Technological change is accelerating and regulations have struggled to keep up. A significant proportion of these crimes is categorised as Authorised Push Payment (APP). Current Giving Accountants the time and tools to provide real-time advice on their client's business performance. The PSR establishes that this is not soon enough. Confirmation of Payee is a new way of checking account details to give customers (both personal and business) greater assurance that they are sending payments to the intended recipient, helping to avoid misdirected payments being sent to the wrong account as well as offering another important tool to help in the fight against fraud. This could mean the difference between paying money to a correct account or into the hands of criminals. 21.02.2020. How U Account is challenging financial exclusion by shedding the agency banking model, powered by Modulr, Bitstocks sees bumper surge in transaction volumes, powered by Modulr, How Bitstocks is disrupting the financial services marketplace with Gravity a solution grounded in Modulr technology. Confirmation of Payee will be expanded in time to include other accounts that use a reference number including savings accounts, mortgages and credit cards, as well as to Open Banking initiated payments. The move makes Modulr the first non-bank to participate in the scheme, which aims to provide an extra layer of defence against authorised push payment (APP) fraud. Where an account is not available through the Confirmation of Payee system, whether temporarily or otherwise, a business will be notified that the account is unable to be checked. If the customer recognises the name provided, they may opt to proceed with the payment. CEO fraud is where the criminal manages to impersonate the CEO or another senior member of staff from the victims organisation to convince the victim to make an urgent payment to the scammers account. Businesses should not proceed with a payment if any of the details do not match nor feel embarrassed or reluctant to check if the payee name is correct. The main purpose is simple: to eradicate misdirected payments either as a result of fraud Accountants and finance teams, especially at SMEs, are often the target of accounts payable fraud and phishing or social engineering schemes. A no match Confirmation of Payee response; Do not use contact details from an email or letter. Confirmation of Payee only includes sterling payments transacted within the UK, so it will not affect foreign currency payments or international transfers, sent or received. This has been adopted by members of the UKs six largest banking groups 1. If paying a business, customers should ensure they follow any guidance given by a business and include the full business name or trading name. And if a consumer or business is tricked into making a payment to the wrong account, theres no guarantee of reimbursement. Always confirm any bank account details directly with the company either on the telephone or in person before you make a payment or transfer any money. Confirmation of Payee will also help to prevent payments from going through in the case of accidental input, by alerting users. Always follow the advice of the Take Five to Stop Fraudcampaign: Modulr FS Limited is a company registered in England with company number 09897919 and ICO registration: ZA183098, authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (Firm Reference Number: 900573). A business should follow guidance given by its bank and may wish to take additional steps to ensure that the payment is being made to the correct payee, particularly if it has been asked to pay an amended, or new, account. Modulr is the first non-bank to do so. "That is now changing with the Confirmation of Payee (CoP) service recently launched by the main six UK Banks, in which you are requested to also Often the criminals will try to acquire details from businesses, such as the date when regular payments are due, to make their approach more convincing.
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