UK fintech Modulr has today launched Confirmation of Payee (CoP), a fraud prevention initiative spearheaded by retail payments authority Pay.UK.
The move makes Modulr the first non-bank to participate in the scheme, which aims to provide an extra layer of defence against authorised push payment (APP) fraud.
In addition, this is the second Modulr product launch to come out of its £10m grant from the Capability and Innovation Fund (CIF) under the RBS Alternative Remedies package.
Myles Stephenson, Chief Executive of Modulr, said: “We’re committed to delivering the very latest innovation in payments to our customers, and I’m delighted that we are the first non-bank or building society to offer Confirmation of Payee. Thousands of consumers and businesses fall victim to social engineering scams every year in the UK. Modulr is always looking for ways to help our customers keep their money safe.
“We’re pleased to announce the launch of Confirmation of Payee offers greater assurance to businesses and consumers when making payments. This is a crucial step forward in the ongoing battle against fraud and it’s going to help us build a safer payments ecosystem in the UK.”
APP fraud describes when a person is tricked into approving a payment to a fraudster’s account, through social engineering, manipulation or deceit.
CoP calls on Modulr’s API and automatically checks that the recipient’s name and account details match the information held by their payment service provider.
If the details don’t match, the user will be warned so they can confirm the details with the person or organisation they are trying to pay.
Brian Cunnington, SME for the CoP project team at Pay.UK, said: “We are delighted to see Confirmation of Payee now making a difference in the UK payments environment. The new service offers protection for consumers through the account name checking service, reducing errors and fraudulent misdirection of funds.”
The announcement comes after the UK’s six largest banking groups fully implemented CoP with effect from 30 June.