Belgian banking sector works on IBAN name check to combat fraud – IT Pro – News

Belgian banks are working on a method to check the name and account number during transfers, in order to prevent invoice fraud. The banking federation announces the measure after a bill by N-VA MP Michael Freilich.

Banking Federation Febelfin announces the IBAN name check to combat billing fraud. The federation hopes this will reduce fraud with transfers. The organization warns that this will not help against other forms of fraud, such as phishing, and that entrepreneurs and consumers must remain vigilant.

In the event of invoice fraud, an invoice is intercepted and the account number is adjusted. This will then transfer the amount to a scammer’s account. This can be prevented by checking whether the entered name corresponds with the account holder. It is not yet known from when the Belgian banks can start performing the name check.

Opposite Het Nieuwsblad says a spokesperson of the banking federation that implementation is still in ‘the initial phase’. In addition, in the first phase, the system will only check Belgian IBANs and not yet foreign account numbers. In order to also check the foreign numbers, the federation is awaiting the decision of the European Commission.

With the measure, the federation is following the banking sector in other countries. The United Kingdom has already introduced a similar measure and also in the Netherlands carry a number of banks been checking this out for a few years now.

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