Dutch banks are to reintroduce a verification system which checks whether an account number corresponds with a given name. All banks have pledged to put these ‘name-number checks’ in place in the course of this year.
Rabobank will do the kick-off, the other banks will follow suit. The measure aims to help clients protect themselves both against erroneous payments and bank account number scams.
Fraud Help Desk has been calling for name-number checks for many years. The absence of such a verification system has facilitated abuse by scammers. They could intercept a bill, for example, and change the bank account on it. People who paid the bill didn’t notice that the money ended up on a scammer’s account.
Many businesses have fallen victim to this type of invoice fraud. They were not entitled to a refund, not even if they had typed in the wrong bank account by mistake.
Each month, Dutch banks received more than 200 complaints relating to fraudulent bank transfers and 1300 reports about incorrect payments. The name-number checks will warn bank clients when a given name does not correspond with a bank account. In addition, the banks will stop reissuing IBAN numbers of bank accounts which have been canceled.
The name-number verification should not be confused with the IBAN-Check offered by Fraud Help Desk. Businesses can use this service to verify whether Fraud Help Desk has received any complaints a particular account number.
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