Bank transfer rules will be altered from today as part of a new law seeking to protect customers. The move is part of increased safety measures which will be introduced by familiar providers. Major banks will now have increased security checks for those looking to transfer cash.
The name will have to be exactly as it appears on the card to ensure it is absolutely correct.
The confirmation of payee system will then cross-reference the details to ensure the information provided matches the records of the person or business the money is being transferred to.
It is hoped this will mean unsuspecting Britons will no longer part with their hard-earned cash after being duped by fraudsters.
The loophole closure will mean money is more likely to be protected, and fraud could be reduced.
It is also worth noting the payment can be stopped if necessary, if a transfer feels suspicious.
If choosing to go ahead with a payment, even if the account details do not match, Britons will be warned of the risks involved.
However, if details do match up but only in a similar way, then savers are encouraged to double check.
The system has now been adopted by the most familiar banking groups including Nationwide, Natwest, Lloyds, HSBC, Barclays and Santander.
In the past, banks such as HSBC and Barclays have been using similar verification processes to ensure their customers are protected.
The new measure is particularly useful for those who are making a payment to a new or less familiar account as it provides extra reassurance their money is in the right hands.
The rules will be overseen by the Payment Systems Regulator (PSR) to ensure the system runs smoothly.
Chris Hemsley, Managing Director of PSR said: “The widespread implementation of this additional name-checking provides a new, added layer of protection for consumers. As well as helping stop fraudsters from committing devastating crimes, it will also help people avoid paying the wrong person accidentally.
“We’re pleased to have reached this significant point, and I welcome the work that the directed Banks and Building Societies have put in to reach this point. Their customers can now make payments with greater assurance that their money is going to the person they intended.”