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New anti-fraud payment measure to be rolled out in 2019

Article posted: 4th December 2018

The UK’s leading retail payment authority Pay.UK has announced how a new ‘Confirmation of Payee’ service will work when it begins to be rolled out in the first half of 2019.

Aimed at reducing the risk of payments being sent to the wrong account, Confirmation of Payee can help prevent many fraudulent payments from being made in the first place, by introducing another hurdle for fraudsters.

Banks, building societies, and other payment providers will be able to roll out Confirmation of Payee during 2019 as a way for their customers to check the name of who they are paying. The aim is to reduce the risk of errors and certain types of fraud, such as ‘malicious redirection’ invoice scams where, by posing as a legitimate business known to customer, payers are convinced to redirect a payment to an account controlled by the fraudster.

Under the new system, when setting up a new payment, or amending an existing one, banks will be able to check the name on the account of the person or organisation you are paying.

There are three possible outcomes following an automatic check that the payee name entered by the payor matches the owner of the recipient account:

If you used the correct account name, you will receive confirmation that the details match, and can proceed with the payment.

No, please check
If you used a similar name to the account holder, you will be provided with the actual name of the account holder to check. You can update the details and try again or contact the intended recipient to check the details.

No, the name is wrong
If you have entered the wrong name for the account holder, you will be told the details do not match and be advised to contact the person or organisation you are trying to pay.

The matching decision is made by the intended recipient’s bank as they have the best knowledge about the name of the person or business that is being checked.

No matter what the outcome of the name check, the decision on whether to proceed with a payment will always rest with the sending customer with the risks made clear if they choose to go ahead after receiving a non-match.

There will still be some types of malicious payee fraud that Confirmation of Payee cannot address, such as purchase scams where someone is tricked into paying in advance for goods that do not exist.

The Payment Systems Regulator recently announced it will consult on requiring payment service providers to implement Confirmation of Payee in the first half of 2019.

Further details can be found at: Fraud and cybercrimes should also be reported to Action Fraud at

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