Banks to check account names in bid to combat fraud

Banks are moving to combat transfer fraud with the introduction of a new system to check account names from next year. 

Buyers and sellers of property are targeted by criminals committing ‘authorised push payment’ fraud. The fraudster tricks them into believing they are sending monies to a legitimate account when actually the account belongs to the fraudster. As the sender has willingly authorised the payments, banks are often reluctant to reimburse the lost money.

So the property industry welcomes the proposed change.

Banks will check whether the recipient’s name is correct as well as the account number and sort code when transferring money. If the names do not match, the sender will be able to decide whether to proceed.

For more information and advice on all aspects of your property sale or purchase, please contact our expert Conveyancing team by calling 0113 264 4414 or emailing conveyancing@emsleys.co.uk.