The UK's banks will soon update their antiquated payment systems, adding in a new confirmation step that should cut down on cases of money being erroneously wired to wrong accounts due to number typos.
Banks will soon start asking for a "confirmation of payee" step when sending money, as in, you type the account number and sort code, then The System queries who the account belongs to and generates a step in the process that asks you if this is indeed who you want to be paying.
It's being implemented by the Payment Strategy Forum, which says this cross-referencing of name and account number should end problems in which money's sent to wrong accounts, sometimes on an ongoing basis for years. And maybe it's good to stop fraudulent requests, too. It could be in place by 2018.
The PSF's Ruth Jones said: "The confirmation of payee system will allow people to avoid sending payments to the wrong account, either by accident or being tricked into doing so, by ensuring a confirmation of the recipient is sent to the payer before any funds leave their account." [Guardian]