Today, the Payment Systems Regulator (PSR) confirmed and published a new rule that paves the way for more banks and building societies to adopt Confirmation of Payee (CoP), the bank account name checking service.
Every year thousands of individuals and businesses fall victim to Authorised Push Payment (APP) scams – where they are tricked into sending money to an account controlled by a fraudster. There are also a significant number of accidentally misdirected payments that are not recovered. The latest figures show that in the first half of 2021, £355 million was lost to APP scams, overtaking card fraud losses.
In 2019, the PSR directed the UK’s six biggest banking groups to implement the first stage of CoP – a fraud prevention tool that checks the names, account numbers and sort codes when payments are made from one account to another.
Confirmation of Payee
CoP was designed to help stop fraud and accidentally misdirected payments by checking whether the name of a payee’s account matches the name and account details provided by a payer.
The PSR’s analysis of Phase 1 of CoP has shown that it has: