IBAN name check to help prevent bank fraud starting in October
Starting this October, anyone transferring money online will be able to see whether the recipient's name matches the account number provided. The new system, announced by minister of consumer protection Rob Beenders (Vooruit), aims to combat a growing wave of bank fraud.
The change is part of new European regulations and will apply to all banks within the eurozone. “This is absolutely essential,” said Beenders. “It closes a loophole that fraudsters have exploited for too long.”
Until now, bank transfers have been made without checking if the name matches the IBAN number, allowing scammers to receive money under false identities. In 2023 alone, there were 46,915 reports of fraud and deception, according to figures from the FPS Economy and financial ombudsman Ombudsfin.
“The goal is to make people more alert"
With the new system, bank customers will receive an automatic check when making a transfer. If the name and account number match, a simple “match” message will confirm it’s safe to proceed. If there’s a slight discrepancy, such as a spelling error, the system will flag it with “close match.” If the name is entirely different, a “no match” warning will appear.
However, the final decision still lies with the user. “The goal is to make people more alert,” said Beenders. “This way, they can catch suspicious transfers before it’s too late.”
The system also works with foreign IBANs as long as they belong to eurozone countries. All eurozone banks must implement the name-checking system by 9 October at the latest.
© BELGA PHOTO LAURIE DIEFFEMBACQ
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