Have you ever paid the wrong person? A change to online banking will stop the problem
Banks will alert you if the person you're trying to pay matches the account details you give in an attempt to crackdown on customers accidentally transferring funds to fraudsters
BANKS are to start warning customers who they're really transferring money to in a fresh clampdown on fraud.
As of next year, high street banks will be able to alert customers if the name of someone they're trying to pay doesn't match the account details.
It's the latest bid to combat scams where victims are tricked into handing over their cash to fraudsters.
These types of scams are particularly nasty because banks won't issue a refund to victims who have willingly transferred the money from their accounts.
Pay.UK - which is a rebrand of the New Payment System Operator - processes billions of bank transactions between retailers, customers and banks, and it is the firm behind the new service.
As it stands, the account name is not checked by the bank when customers send an online payment.
How to protect yourself from fraud
USE the following tips to protect yourself from fraudsters.
- Keep your social media accounts private – Think twice before you your share details – in particular your full date of birth, address and contacts details – all of this information can be useful to fraudsters.
- Deactivate and delete old social media profiles – Keep track of your digital footprint. If a profile was created 10 years ago, there may be personal information currently available for a fraudster to use that you’re are not aware of or you have forgotten about.
- Password protect your devices – Keep passwords complex by picking three random words, such as roverducklemon and add or split them with symbols, numbers and capitals.
- Install anti-virus software on your laptop and personal devices and keep it up to date – This will make it harder for fraudsters to access your data in the first place.
- Take care on public Wi-Fi– Fraudsters can hack or mimic them. If you’re using one, avoid accessing sensitive apps, such as mobile banking.
- Think about your offline information too – Always redirect your post when you move home and make sure your letter or mailbox is secure.
But the new scheme will flag warning signals to customers who will then be informed about the person they're handing over their cash to.
When someone is setting up a new payment, if the name matches, there will be confirmation of this - which could be a green tick, for example.
If the name does not match but is similar, you will be provided with the actual name of the account holder to check. You can then update the details and try again, or
contact the recipient to check the details.
If you have entered completely the wrong name for the account holder you will be told the details do not match and advised to contact the person or organisation you are trying to pay.
It is then up to the sender to decide whether or not to proceed with the payment - but the risks will have been made clear to them beforehand.
Victims can end up losing huge amounts of money by unknowingly transferring cash to scammers, such as retired NHS worker Jo Wilson, 61, who was scammed out of £40,000 after fraudsters pretended to be from NatWest.
How to report a scam
HERE's how to report a scam if you think you've been defrauded, according to Which?:
1. Report scam emails to the ISP - If you’ve spotted a scam email or phishing email, the first step will be to report it to the internet service provider (ISP) that was used to send you the email. Once you report the scam email, the ISP can then close the account that sent the email.
2. Report scam emails to the company - If you're the victim of a mimicking scam online, where fraudsters pretend to be from a genuine company, it’s also worth contacting the company that has been mimicked. Whether it’s a bank, government department or other company cited in the email, if you notify the company they can take steps to warn other people about the scam.
3. Report internet fraud to Action Fraud - is the UK’s national fraud and crime reporting centre. After reporting a scam, you’ll get a police crime reference number and the case will be referred to the National Fraud Intelligence Bureau for analysis by the City of London Police. Not every report results in an investigation, but each helps build a clearer national picture of fraud. You can also report phishing attempts where you have not lost any money or exposed your personal details.
4. Reporting premium rate phone scams - If you want to complain about or report a premium-rate telephone service scam, contact Phone-paid Services Authority (PSA).
This is the official UK regulator for content, goods and services, charged to a phone bill. You can call PSA free from a landline on 0300 303 0020 or visit the .
5. Report scam mail to Royal Mail - If you receive written correspondence you believe to be from fraudsters, you can forward it to Royal Mail with a covering letter to: Freepost Scam Mail, PO Box 797, Exeter EX1 9UN. You can also email [email protected] or call 0345 611 3413.
6. Stop scam mail - The Mailing Preference Service (MPS) allows you to have your name and address removed from mailing lists. To register for the free service, call 0845 703 4599 or visit the MPS website.
7. Report a scam to local police - You should also consider contacting your local police station to report scams. This may provide them with useful information in catching the fraudsters.
8. Speak to Citizens Advice - If you report a scam to your local Citizens Advice, they may be able to offer you advice. You may also be giving them vital information which they can pass on to Trading Standards to help stop other people from becoming victims of the same scam. Scams are criminal offences under the Fraud Act. This means that trading standards officers can take criminal action against the scammers.
Consumer group Which? welcomed the move - but said customers will wonder why banks have "dragged their heels" and not put this in place sooner.
Gareth Shaw, Which? money expert, said: "With losses to bank transfer fraud increasing drastically it's clear this measure can't come in soon enough.
"While we await its introduction, it's crucial that an agreement is reached on the funding mechanism to reimburse all victims of bank transfer fraud who have been left out of pocket through no fault of their own."
Paul Horlock, chief executive of Pay.UK, said: "Confirmation of payee will let you check you have the correct name for the person or business you're paying, giving better protection against certain types of fraud, and helping to stop accidental mistakes too."
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Last month we also wrote about a gardener who was conned out of £10,000 in a bank transfer scam by fraudsters impersonating HMRC.
Earlier this summer figures from the city watchdog and the pensions regulator revealed that scammers have stolen £46.7million from pension pots in the last four years.
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