Millions of Britons risk fraud by ignoring beneficiary confirmation warnings
Millions of Britons are putting themselves at risk by ignoring warnings that bank details do not match when making a transfer, according to research by Lloyds Bank.
In 2019, the UK banking industry introduced Beneficiary Confirmation (CoP), which ensures that when sending money online to someone who has not been paid before, it is checked whether the details entered correspond to the account of the person or organization being paid. .
However, three years later, a YouGov survey of just over 2,000 people shows that 8% admit to making a payment without further checking when CoP tells them the details don’t match exactly.
Less than half say they would carry out further checks before proceeding with a transaction when presented with a “CoP unavailable” message, which usually means that the receiving bank or payment service provider is not registered with the service, so account details can’t be verified automatically.
Only 41% say they don’t know about CoP and understand how it works, while just 24% would agree that a “No Match” message means they could be scammed.
Lloyds’ own analysis of outbound transfers made to all major banks and payment service providers last year shows that transactions involving businesses not using CoP were up to 100 times more likely to be flagged as fraudulent by customers at a later date.
Liz Ziegler, Director of Fraud Prevention, Lloyds Bank, says: “Fraudsters are trying to steal people’s money all the time, they never stop. We are talking about organized crime gangs, constantly inventing new scams to trick victims out of their hard-earned money.
“So when you make a bank transfer and a warning pops up that the account details don’t match or can’t be verified at all, that should immediately set off alarm bells. Stop, take note and think about why this might be the case, chances are it is because you are being scammed.