Forum Topic

Something to watch out for

"‘I lost my £193,000 inheritance – with one wrong digit on my sort code’""The mistaken transfer – called “misapplied funds” in banking parlance – could not have occurred if UK banks matched up sort codes and account numbers with the account holder’s name. But they do not. A recipient’s name could be given as Mickey Mouse and the bank would still process the payment, using the sort code and account number alone.The banking industry promised that from mid-2019 name checks would be carried out when customers sent money to other people, largely to halt a rising tide of bank transfer fraud. But the timetable was delayed, and it will now not come into force until the end of March next year."https://www.theguardian.com/money/2019/dec/07/i-lost-my-193000-inheritance-with-one-wrong-digit-on-my-sort-codeHe did eventually get his money back, but it, temporarily, took much stress, time and money. A bank-created minefield.

David Ainsworth ● 2531d5 Comments

My advice is if you're planning to make a large payment set the payee's details up. Treble check it. Then transfer £1 (one pound). Verify it's gone to the intended recipient. Then make your payment. Never use bank details sent to you via email unless you've verified them with the payee by another form of communications you're used previously (phone, text, secure messaging, etc)

Michael Ixer ● 2531d

Yes,  it is unbelievable that the cross check between account name and account numbers was never in place from the very beginning.  It shows a complete disregard for the customer!  It is why the customer needs to always check bank and credit card statements.  Cancelled recurring payments can be reactivated by companies months after you've stopped them and if you don't look to check you are unlikely to notice especially if it is not a great amount.

Philippa Bond ● 2530d

Have you personally had any experiences of this yourself if by any chance you have ever sent any money to any 'good causes' in the middle east?

Paul Game ● 2530d

"Cancelled recurring payments can be reactivated by companies months after you've stopped them and if you don't look to check you are unlikely to notice especially if it is not a great amount."Yes this happened to me a few years ago. The amounts were small and I didn't notice they were still being made. My bank did sort it out by recalling the payments but it took about 6 weeks and was a lot of hassle. I have avoided taking out subscriptions on a recurring basis ever since.

Sue Hammond ● 2530d

Paul. I'm unclear of who you're addressing with this rather oddpost but in my professional capacity I'm am aware of several frauds relating to financial services. You'll understand I can't be specific but many such frauds emanate in eastern Europe outside of UK OE EU law enforcement. You may also have seen the one that was recently in the news re the indictments in the US?  

Michael Ixer ● 2530d