Banks want to delay fraud prevention name check

Money Box

BBC

Business

4.2 • 825 Ratings

🗓️ 16 February 2019

⏱️ 26 minutes

🔗️ Recording | iTunes | RSS

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Summary

Confirmation of payee is a fraud prevention system which would allow banks and customers to check names alongside account and sort code details to ensure that transferred money goes to the right person. The Payment Systems Regulator wanted it to start in July. This week UK Finance, which represents banks, said it needed a delay until "some time next year." Guest Gareth Shaw, Head of Money, Which?

Money Box reporter Dan Whitworth takes a forensic look at the accounts of companies linked to London Capital and Finance plc. The company is in administration, leaving 11,000 investors worried about what's happened to their cash. Guest Roger Isaacs, Forensic Partner at Milsted Langdon

Megan Jarvie, Head of Coram Family and Childcare discusses the latest figures for tax-free childcare which show that 91,000 families used it for 109,000 children.

Figures released this week revealed that 10 million people are now saving into a workplace pension. Some of those workers are non-tax payers and have been placed by employers in net pay arrangement schemes where pension contributions are collected before income tax. It means they don't get the tax relief on their pension contributions that they would get if they were in another scheme known as a relief at source, where contributions are collected after income tax. Guest: Meredith McCammond, Technical Officer for the Low Incomes Tax Reform Group.

Presenter: Paul Lewis Reporter: Dan Whitworth Producer: Charmaine Cozier Editor: Richard Vadon

Transcript

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0:00.0	In Northern Ireland, from the late 70s to the early 90s, the IRA killed over 40 alleged informers.
0:08.0	But the man who often found, tortured and sometimes killed these people on behalf of the IRA
0:12.0	was himself an informer, a secret British army agent with the codename Stakeknife.
0:18.0	Who gets to play God? And why me? Why my family?
0:21.3	When lies are still being told to this day, who do you believe?
0:25.1	I wouldn't even know where to start, and I'm with the IRA.
0:28.5	Steakknife.
0:29.7	Listen first on BBC Sounds.
0:33.5	BBC Sounds, music, radio, podcasts.
0:37.4	Hello, in today's program, the banks have announced they want to delay a key anti-fraud measure,
0:42.7	leaving customers unprotected for another 18 months.
0:46.6	We investigate the 12 businesses which the insolvent investment firm, London Capital and Finance, lent their investors investors money too. More than a million parents
0:56.2	are missing out on up to £2,000 a year towards their childcare costs, and low-paid people who
1:01.6	contribute to a workplace pension are not getting their contributions boosted by tax relief
1:06.9	as better paid people do. But first, the banks want to delay a key change that would
1:13.6	help stem the tide of fraud that is sweeping over their customers. The new system is called
1:18.9	confirmation of payee. It will check that the name of the person you're paying money to is in fact
1:25.1	the same as the name on the bank account where you send it. At the moment
1:29.1	only sort codes and account numbers are used, although you have to enter the name, it is never
1:34.4	checked. That allows thieves to give their own bank details to a victim who then pays money
1:39.6	to the thief rather than the intended person. The payment systems regulator told Moneybox late last year
1:45.8	that the new system would be fully operational from July this year. It set out a timetable
	...

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