Banking News

Account name and number matching to help reduce fraud

Account name and number matching to help reduce fraud

(10 September 2018 – New Zealand) In a bid to crack down on errors and fraud, new technology matching bank account names and numbers before money transfers is set to be trialled by three major banks.

The move comes after the UK announced it will introduce a confirmation of payee system across its banks next year.

In New Zealand, there are currently no checks to ensure the account number or the name match up with the person or business you are transferring money to.

Steve Wiggins, chief executive of Payments New Zealand said it was building a framework that would allow banks to verify account numbers and names before transfers were made. Once built it will be trialled by ASB, Westpac and BNZ, as well as third-party firms Trade Me, Datacom and Paymark.

The system would work by sending a message asking for verification of the account name and number. The process would be quick and would not delay the payment going through by much time.

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