Name matching is essential for verifying the identity of a beneficiary receiving money into their bank account. Whether it be fraud, money laundering or simple human error, misdirection of funds into the wrong accounts requires significant time and resources to correct. Those operational costs are added to reputational risks, potential fines, law suits and legal expenses and more.
Fincom.co offers the opportunity to massively increase operational efficiency and data compliance, by going beyond simple name matching methods. “Levenshtein” is the most common used distance algorithm, which is 55 years old and measures the single-character edits between words. Other methods, in a similar manner, compare single letters to each other and trying to understand the distance. None of those methods were designed for the purpose of name matching.
It's both essential and affordable – each name verification will cost less than a cent and last less than a minute. That’s the ultimate insurance policy for staying on the safe side.
Why it’s important
Scammers have stolen more than £500m from UK bank customers in the first half of 2018. A total of £145m of that was lost through authorized push payment (APP) scams, where people were duped into authorizing a payment to another account”. Source: UK Finance.
Each year thousands of consumers and businesses fall victim to authorized push payment scams (APP scams) when they make a payment to an account that isn’t what they thought it was. These payments may be for goods, services etc. –payers are tricked into sending money to an account used by a scammer, rather than a legitimate account. Thousands of payments are also sent to the wrong accounts accidentally