The major banks have been forced by the regulator to introduce Confirmation of Payee. This stops a lot of online banking frauds as part of the transaction to send money asks for the beneficiary account name. The bank then checks with the receiving bank that who you think you are sending to is the correct named account. If the names don't match you are sent a warning giving you the opportunity to cancel the transaction if you suspect a fraud. Tesco Bank doesn't seem to be introducing this extra layer of fraud prevention, why?
Thanks for your query, which i am pleased to help you with. 👍
I confirm the wheels are already in motion to meet the deadline set by the Payment Systems Regulator, for the roll-out of Confirmation of Payee by the 30th June 2020.
However, due to businesses having to manage risks related to COVID-19. the regulator has announced that this date may have to be delayed.
Crucially, there is a reference where any bank that does not have Confirmation of Payee, and a customer falls victim to a scam that would have been prevented by CoP, that they should be fully reimbursed. 👍
Banks introduced Confirmation of Payee and it was originally announced in October 2018.
It is the six major banking groups i.e. Barclays, HSBC (inc First Direct), Lloyds (inc Halifax and Bank of Scotland), Nationwide, RBS (inc NatWest and Ulster) and Santander have until Tuesday 30 June, 2020 to implement it under the Payment Systems Regulator rules. However due to the financial situation in relation to the coronavirus it may be moved.
It may be worth noting that for it to work it requires the sending bank AND the receiving bank to have the Confirmation of Payee system in place to get the real benefit of it.