Roll-out of vital banking fraud check postponed again due to Coronavirus
A crucial banking security check that could avert the loss of millions of pounds to internet fraud has been delayed once again, this time due to the Coronavirus outbreak.
Roll-out of vital banking fraud check Confirmation of Payee delayed again due to coronavirus disruptionshttps://t.co/rlK67pt3L8
— Livid \uD83E\uDD26\uD83C\uDFFB♀️ (@Livid2point0) March 26, 2020
Following the COVID-19 pandemic, banks have now been given time until June 30 to implement Confirmation of Payee (COP), which cross matches the name of recipients with their account number. Banks have been ignoring these details in the past, only focusing on the account number and sort code. Although the significance of KYC and AML compliance in banking is undeniable.
Upon introduction, the system will block payments to fraudsters and scammers who impersonate themselves as builders or solicitors. Some banks including Lloyds Banking Group and the Royal Bank of Scotland have successfully introduced the Confirmation of Payee. While others, including Santander, will take until June to be ready.
Metro Bank, on the other hand, claims that the system is too complicated and the bank will not implement it at all. A Metro spokesman says: ‘We have no current plans to implement Confirmation of Payee, however, this is something we will continue to keep under review for the future.’