A much simpler solution would be for transfers to take two days. That would catch most frauds.
Brendan
Similarly the fraudsters are withdrawing the funds as soon as they hit the account
So if the victim realises it in time, they have two days to stop it.
Good fraud prevent measure. Should help prevent people wiring money to wrong accounts.
Ireland should introduce the same name check as the UK.
I'd imagine that any introduction of a name check would have to be done at an EU level as it'd need to be on the entire SEPA payments system:- just adding it on transfers received into Irish bank accounts wouldn't be very effective. Honestly, I think a more effective measure might be greater encouragement of the use of the SEPA Direct Debit scheme (with all of its consequent refund guarantees). GoCardless.ie is a good example of how this can be done but I've not seen huge take up of it.
This is probably going to be more of an issue in the future as SEPA Instant becomes more available.
SEPA transactions carry details of both the debitor and creditor accounts and many banks across Europe already validate account names. However it does very little in helping fraud detection since the originating bank can only validate the source account and the receiving bank can only validate the target account. So at best a bit of error detection. And a good PR exercise.
To clear this up a little, the UK system will tell the sender, before the funds are sent, if the receiver account name matches.
No suspense accounts.
No banks holding funds for their own benefit.
Do you have a reference for any of this? It seems to contradict details in the website you linked to.The service will be offered by Pay.UK one of the major transaction processors. It will be based on data held by them from previous processing and not data held by the banks. This has implications:
- They will not be aware of all accounts even in the UK
- They will not be aware of closed or blocked accounts
- They will not be aware of situations where the receiving bank intervened, so an invalid account will remain as valid
- A serious of invalid transactions can produce a temporary valid account rule.
I design banking / payments systems for a living. However, I didn't say anything that wasn't included in the article linked in the first post. It appeared that there were some contributions from posters who didn't fully understand what there were saying.Do you have a reference for this?
There are no shared lists needed. This is all based on API standards, where messages are passed between banks. Anyone operating faster payments is already operating in a message based payment infrastructure.it would require the banks to share customer data which would cause data protection issues at a very minimum. And in general banks do not like to provide their competitors with their customer lists.
Pay.uk are a payment services authority. They set the industry standards around both BACs and Faster Payments. There's not much goes on within domestic payments in the UK that isn't in their remit.The service will be offered by Pay.UK one of the major transaction processors.
So, they're not going to do what they actually said they will, when they said the check is done by the recipient bank?It will be based on data held by them from previous processing and not data held by the banks.
In combination with the proposed compensation scheme, there will be strong buy-in from banks.So it adds another layer, but it is no fool proof and of course depends on the payment processors being used. And about all depends on people not overriding the warning.
No differently to how it currently does. The receiving bank won't check names once it receives the payment, only the initial message request.And yes this will apply if the transition gets processed.
That is an interesting challenge to be overcome in a SEPA context, but the UK solution is a domestic one only.There is also the challenge of the small or private banks in mainland Europe who use partner banks to process their SEPA transitions where the customer name is not the account name.
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