- Martin Lewis, the founder of Money Saving Expert, praises a new security feature for British bank customers
- Online money transfers will soon have a “confirmation of payee” feature
- “This should really help reduce the number of impersonation scams, and also just plain errors”, Lewis said on his website
A “step change” in security for those receiving remittances and other transfers in Britain is on the way, a leading financial journalist and campaigner has said.
Martin Lewis, who founded Money Saving Expert, said that the roll out of the “confirmation of payee” service was on the way – and that in some cases it was already in place.
As part of this new feature, customers will receive a notification if they attempt to pay someone using a name that does not appear on the intended destination account.
At present, it is possible for a person to type the wrong name into the name box when using online banking.
Provided other details like the sort code and account number are correct, the cash will still be transferred.
The changes were first revealed back in 2018.
However, an article on the Money Saving Expert website appears to confirm that the move was now accelerating.
A number of banks have already brought the change into action, although several have still not switched over.
It is understood that a group of leading banks – including big names such as HSBC, Barclays and Santander – will have until the last day of this month to make the switch.
It is rumoured, however, that the coronavirus pandemic could push this deadline back.
Lewis took to the Money Saving Expert website to explain more about how users of online money transfer services were likely to benefit.
"This is a step change in the fight against scammers. It is staggering that it has taken this long to get there – banks have put it off again and again”, he said.
“Until it is fully introduced, if someone gives you a sort code and account number, it doesn't matter what the name you put is.”
“They could tell you to put 'HMRC Tax Payment', even if it's an account belonging to Jane Smith, and it'll still go through. What's worse is that few realised, and felt the name meant something”, Lewis added.
Lewis also said that the incidence of both scams and errors were likely to be reduced.
"Once we have the full 'Confirmation of Payee' roll-out, if there's a mismatch between the name you put in and the name of the account holder, it'll be flagged up, giving you room for pause before you pay”, he said.
“This should really help reduce the number of impersonation scams, and also just plain errors. The sooner banks roll it out across the board for all types of payments, the better”, Lewis added.
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