Millions of Brits are putting themselves at risk by ignoring warnings about mismatched bank account details during transfers, according to research from Lloyds Bank.
In 2019, the UK banking industry introduced Confirmation of Payee (CoP), a feature that checks whether the account details entered when sending money online match the recipient’s account. Despite this measure, a recent YouGov survey of over 2,000 individuals revealed that eight percent of respondents proceed with payments even when CoP flags a mismatch.
Additionally, less than half of those surveyed would conduct further checks when encountering a ‘CoP unavailable’ message, which indicates that the recipient’s bank or payment service provider is not registered with CoP and the account details can’t be automatically verified.
The survey also highlighted that only 41% of respondents are familiar with CoP and its functioning, while a mere 24% understand that a ‘No match’ message could signify a potential scam.
Lloyds Bank’s analysis of outbound transfers last year showed that transactions to firms not utilizing CoP were up to 100 times more likely to be reported as fraudulent by customers later on.
Liz Ziegler, fraud prevention director at Lloyds Bank, emphasized the importance of vigilance, stating, “Fraudsters are continually attempting to steal money, with organized crime gangs creating new scams. When a warning appears indicating that account details don’t match or can’t be verified, that should raise immediate concern. It’s essential to stop, pay attention, and consider the implications, as there is a significant risk of falling victim to a scam.”