Latest news with #ConfirmationOfPayee
Finextra
08-07-2025
- Business
- Finextra
Confirmation of Payee five years on
0 This content is contributed or sourced from third parties but has been subject to Finextra editorial review. Five years ago, the UK's financial landscape underwent a profound transformation with the introduction of Confirmation of Payee (CoP) . The service was launched by in 2020 to reduce the number of misdirected payments by verifying the account details of the intended recipient before a payment is made. Having since also demonstrated its effectiveness in mitigating and reducing certain types of fraud, the service has now become a customary part of the payment journey for both payment service providers and end users. I've had the privilege of working as part of the team that took CoP from a blueprint in 2018 to a service that today covers 99% of organisations initiating Faster Payments in the UK, and completes more than 2.1million checks every day. Most importantly, however, are the impressive results brought about by the service in this time. The Credit Payment Recovery sent claim percentage rate for the 'incorrect account' category (as a proportion of Faster Payment sent transactions) is a sound indicator of a reduction in misdirected payments. Since the launch of CoP , we have seen a 59% reduction in this category and a 20-40% reduction in financial losses to end users for some types of fraud, according to the UK Finance Annual Fraud Report 2025. Confirmation of Payee's international influence Owed to its measurable impact and innovative nature (a full name matching capability that provides a more robust and user-friendly solution than earlier binary (yes/no) and attribute-based checks), Confirmation of Payee has come to be seen as a 'poster child' of payment verification initiatives around the world. We have, and continue to, actively engage with our international counterparts, sharing the insights and learnings from our own journey, to help inform the development of these initiatives and strengthen payment security. These collaborative efforts have delved into critical aspects of implementation, including legal and liability frameworks, directory implementation, testing methodologies, customer communications, and the development of standardised matching logic and user experience. The rollout of New Zealand's GetVerified in 2024, Australia's Confirmation of Payee in July 2025, and Europe's Verification of Payee in October 2025, all serve as testament to both Confirmation of Payee's influence in effectively reducing misdirected payments and mitigating financial crime, and a shared understanding of the critical need for enhanced payment security on a global scale. The future of payment verification As we reflect on CoP's remarkable journey five years on, the question naturally arises: what's next? As well as maintaining the vital service that CoP provides, it is also crucial to continually assess the evolving financial landscape and progress the service as new challenges and opportunities emerge. We are currently exploring other use cases of the service and whether there are other organisations, further to payment service providers, that could benefit from employing CoP, such as Bacs Approved Bureau and Bacs Approved Software Solution providers. We are also looking at how we can implement other fraud prevention and detection tools that can check additional data points that can support payment service providers in identifying potential fraudulent accounts prior to a payment being processed. The most ambitious vision is a future where CoP transcends national borders. The ultimate goal is a truly global service that can be applied to cross-border payments, rather than relying on a multitude of similar, yet separate, services across different countries. This would not only enhance global financial integrity but also streamline cross-border commerce, benefiting governments, businesses and individuals. To this end, we will continue to monitor the development of similar initiatives around the world and, in parallel, explore how we can refine our own model to ensure interoperability for cross-border payments. CoP has already proven to be a powerful tool in the fight against financial fraud and payment errors. Its journey from a domestic initiative to an international standard is a testament to its efficacy and the collaboration of the global financial community. As we look ahead, we will continue to leverage the success of CoP, both in the UK and in a global context, to build a more secure, efficient, and borderless payment ecosystem for everyone, everywhere.
Finextra
03-07-2025
- Business
- Finextra
Westpac introduces Confirmation of Payee
Westpac has today announced the introduction of Confirmation of Payee, a new security feature designed to help customers spot a scam and reduce mistaken payments. 0 The new technology builds on Westpac's existing Verify capability, which already alerts customers when an account name doesn't match the BSB and account number used in previous payments by other Westpac Group customers. Confirmation of Payee adds another layer of security by checking the account name against the records held at the recipient's bank, giving customers greater confidence before they make a payment to someone new. Westpac Head of Fraud Prevention, Ben Young said the new technology is part of the bank's ongoing investment in scam protection. 'Scammers are becoming more sophisticated, finding new ways to trick unsuspecting Australians into handing over their hard-earned money. This is why it's so important for us to continue to invest in ways to help keep our customers safe,' Mr Young said. 'The introduction of Confirmation of Payee builds on our existing Verify technology and will help customers confirm they're paying the right person, potentially stopping a scam in its tracks.' Since launching in June 2024, Westpac's existing Verify technology has prevented more than 400 mistaken payments each day and stopped customers from losing over $6 million to scammers. 'We're continuing to take the fight to scammers to help keep people safe, but we can't do it alone. We need other organisations, like telcos, digital platforms and social media companies, to adopt similar protections so we can collectively raise the bar on customer security,' Mr Young said. Verify with Confirmation of Payee is the latest in Westpac's suite of scam prevention initiatives, including SafeCall and SaferPay. Together these initiatives have helped to prevent customers from losing over $500 million to scammers over the past two years.
Finextra
02-07-2025
- Business
- Finextra
Australian banks launch nationwide Confirmation of Payee scheme
Australia's banks have begun the roll-out of a nationwide Confirmation of Payee programme to help protect customers from being tricked into sending money to criminals. 0 Banks have invested $100 million in the name-matching technology, which helps reduce scams and mistaken payments by checking whether the name, BSB and account number entered by a customer match the account details held by the receiving bank and showing the match result before payment is made. Australian Banking Association CEO Anna Bligh says that while Australia was one of the only countries in the world where scam losses were reducing, investing further in the latest scam fighting technology is crucial to driving losses down even further. 'This is critical new technology that will help protect a customer from transferring money straight into the hands of a scammer.' Already widely available in the UK, Confirmation of Payee is also being rolled out across Europe under an October 2025 deadline set by the EU Instant Payments Regulation. Belgian banks have been the first to go live with the new technology, providing an extended version of the standard name-matching service to provide clearer notifications to payers, more data for banks to detect fraud early, and support for country-specific needs such as multilingualism and special characters.
Yahoo
02-07-2025
- Business
- Yahoo
Major Aussie banking update as 'crucial' new tool deployed to protect your money
Australians will have one extra step to protect their hard-earned money when they're transferring it out of their accounts. Banks have agreed to install new technology that will ensure you're sending your cash to the right person. Normally, you would type in an individual's BSB, account number, and name; however, your bank will now make sure the name you put in matches the other details. Australian Banking Association (ABA) CEO Anna Bligh described it as a "new weapon" that would be "crucial" to preventing Aussies from being scammed. 'When the rollout is complete, Australia will be one of only a handful of countries to have this technology in place across the entire banking sector, ensuring customers are protected regardless of who they bank with," she said. "It is further proof that Australian banks are leading the way when it comes to protecting customers from scams.' Commonwealth Bank unleashes wild new tech to stop $107 million issue Aussie earning $300,000 a year in job after completing three day course Centrelink act costing 'hardworking' taxpayers At the moment, when you put in someone's details to send them money, you might not be stopped if they don't all match up. A scammer might have sent off a fake invoice if you were about to hand over the deposit for a car, mortgage or other big-ticket item, and you might be none the wiser until it's too late. However, this update, which is called Confirmation of Payee, will ensure that when you type in the person's name, it will alert you if it doesn't align with the BSB and account similar to the way PayID works at the moment by showing you the name attached to the phone number listed. If the details match, the account name will be displayed for confirmation If there's a close match (e.g. 'John Smyth' instead of 'John Smith'), the customer will see the account name and can confirm if it's correct For individual accounts with no match, the customer will be shown a warning and the account name won't be shown to help protect privacy For business and government accounts, the account name may still be shown and the customer can then decide if they want to go ahead and make the payment, or check the details again The technology will begin its rollout from July this year. The ABA said banks will "progressively" adopt the service in the coming weeks and months. A national education campaign will also be launched to help everyday Aussies understand how it works. Australian Payments Plus (AP+) developed the new system and said it would not only reduce scams, but also tackle payments that accidentally get sent to the wrong person. If you get just one number wrong in the account details, it could go to someone other than the one intended. Adrian Lovney, Chief Payments and Schemes Officer at AP+ said the update might be "simple" but it "adds a powerful extra layer of protection for everyday transactions". Some of the major banks have similar types of technology already deployed to protect Aussies when sending money. Commonwealth Bank has NameCheck, while Westpac has a Verify feature. But Confirmation of Payee will add just one more step in the payment process and can fill in the gaps that aren't covered. 'Scammers are becoming more sophisticated, finding new ways to trick unsuspecting Australians into handing over their hard-earned money," Westpac's head of fraud prevention, Ben Young, said. "This is why it's so important for us to continue to invest in ways to help keep our customers safe."Error in retrieving data Sign in to access your portfolio Error in retrieving data
