IBAN-Name Check reduces fraud and incorrect transfers
Rabobank has seen the number of cases of fraud and incorrect transfers fall substantially since the introduction of the IBAN-Name Check in September 2017. Customers have in total lost 70 percent less money to invoice fraud and the IBAN-Name Check has reduced the number of incorrect transfers by half. The IBAN-Name Check checks whether the name entered with the IBAN by the customer is the same as the name registered with the bank for the entered IBAN. Notification is given if there is a discrepancy.
IBAN-Name Check has been developed by Rabobank Surepay. The introduction of the IBAN-Name Check at ASN Bank, Regio Bank and SNS (collectively de Volksbank) and ING means customers of these banks now also receive greater certainty with respect to their transfers. David-Jan Janse, co-founder of Rabobank Surepay, explains: ‘Making a mistake when using internet banking or mobile banking can result in an amount ending up with the wrong person or company. While these incorrect transfers are usually returned to customers, this is not always the case. The IBAN-Name Check gives customers a means for verifying more effectively whether they are transferring funds to the intended beneficiary.’
The IBAN-Name Check has the greatest impact on invoice fraud. This form of fraud involves intercepting existing invoices and changing the bank account number. ‘By using the check in the app or online, customers can see whether the beneficiary is not the intended company, but a private individual for example. This should send up a red flag and cause the customer to check the details. It has been revealed that damages resulting from invoice fraud have been reduced by 30 percent over an eight-month period with the IBAN-Name Check compared to a comparable period in which the check was not yet available,’ says Janse.
More than 350 million checks have been carried out since the introduction of the IBAN-Name Check. Multiple checks can be carried out per transaction. The check gives notification that an account has been closed approximately 1,500 times a day. Janse: ‘This used to mean the transfer would be executed and then returned with a couple of days if it turned out that the account number was no longer in use. This caused a delay at the very least. But if the account number was being used by someone else in the meantime, this often caused a great deal of nuisance. Now people see immediately whether the account number no longer exists or are given notification that the person or business to which they wish to transfer funds is no longer the accountholder.’
The introduction recently at ASN Bank, Regio Bank, SNS and ING means the IBAN-Name Check is now also available outside Rabobank. ‘It is good to see that we have been able to collaborate effectively with de Volksbank and ING to implement this in less than a year,’ says Janse. Other banks will follow later this year.