Beneficiary verification is a security measure implemented by Lydia Solutions that enables customers to confirm that a bank transfer is sent to the correct beneficiary.
Purpose of this verification
It was introduced to prevent transfer errors and combat fraud. The customer is particularly protected against:
- IBAN input errors (a single incorrect character can result in money being sent to an unknown recipient);
- Fraudulent transfer orders (such as identity theft, communication of a fraudulent IBAN, or calls from fake advisors, ...).
How it works
Before a transfer is made, the system checks that the name entered by the customer matches the actual holder of the IBAN.
If a mismatch occurs, the customer is notified.
In all cases, the customer can still proceed with the transfer. If the customer confirms the transfer despite a mismatch alert, there is a risk that the funds will not be sent to the intended recipient.
In case of a mismatch
The customer has several options:
- Correct the beneficiary's name or IBAN if it is a simple typing error.
- Verify with the beneficiary that the IBAN is correct.
- Cancel the transfer and wait for more information.