Gareth Shaw, Which? Head of Money, said:
“While many banks now have Confirmation of Payee measures in place, the regulator needs to make it mandatory for all payment providers as soon as possible so all consumers can benefit from the same level of security.
“Which? has warned the regulator that relying on some providers to voluntarily use this vital name-check security has left gaps which fraudsters are exploiting in order to scam victims.
“With levels of fraud at an all-time high, Confirmation of Payee does not diminish the urgent need for a system of mandatory rules so that victims are treated fairly and consistently. The government must swiftly take the necessary action to remove any barriers standing in the way of the regulator to introduce a simple reimbursement obligation on all firms using faster payment.”