A new system for safer bank transfers starting in October
Starting from October 2025, banks will begin implementing a new system for matching bank transfer data, aimed at reducing the increasing cases of fraud that consumers face. Fraudsters often use fake invoices or false account details to lure money into their accounts, especially using well-known names attached to fake IBAN numbers.
Until now, the recipient's name has not played any actual role in transfer operations, as it relied solely on the IBAN number. This is what fraudsters have exploited a lot. For this reason, a system will be activated that links the recipient's name to the IBAN number to confirm the validity of the transfer.
The new system relies on light signals that appear to the user during online or bank transfers: Green signal: Complete match between the name and IBAN, and the transfer is safe. Yellow signal: There may be an error in the name or account number. Red signal: The data does not match, the transfer is unsafe and should be reviewed. No signal: There may be a technical issue and the bank should be contacted.
The aim of this step is to enhance consumer protection without imposing any additional fees on them. Implementation will begin on October 9, 2025, with the system to be applied in all EU countries starting July 9, 2027, regardless of the currency used. However, the UK and Switzerland have decided not to participate in this system, meaning that transfers to those countries will not include the additional protection.
Experts warn of a common scam method known as 'phantom collection', where victims are asked to transfer money to foreign accounts. Therefore, anyone receiving messages regarding this should verify them carefully before taking any action.