LHV UK, a banking service provider, has announced that its Confirmation of Payee (CoP) service is now live for all its direct clients.
Launched in July 2020, CoP is a fraud prevention system led by Pay.UK, operated with open banking, which confirms the recipient’s name matches the details held by the bank. LHV UK’s latest offering aims to address Authorised Push Payment (APP) fraud attacks.
When setting up a standing order or making a payment via the CHAPS systems, CoP is helped by the support of UK local accounts which checks the payee’s details. LHV UK then implements its CoP software in two stages, adding more functionality and allowing LHV UK customers to check outbound transactions for future payments.
LHV UK’s offering comes in light after the Queen’s speech in May, where the UK government outlined plans for the Financial Services and Markets Bill, granting UK regulators the power to force banks to reimburse the victims of APP fraud, ultimately scrapping a similar approach set up in May 2019.
“According to the UK Finance, fraud is now the most common crime in the UK. In the first half of 2021, cases of APP rose by 71% compared to the same period the year before and, for the first time, overtook card fraud in terms of the amount of money stolen,” commented Erki Kilu, CEO of LHV UK.
“With regulators poised to get the power to force banks to reimburse the victims of APP fraud, CoP provides our clients and their end customers with an extra layer of defence against APP fraud and greater assurance that their payments are going to the right recipient.”
