Fraud: changes for your bank transfers

In response to the increase in bank fraud, the security of transfers will be strengthened. Starting October 9, 2025, the Verification of Payee (VoP) scheme will become mandatory in banks in Luxembourg and the SEPA area. What is it and what will it change for you? myLIFE provides some details.*

Attempts at financial fraud have seen a significant increase in recent years in the Grand Duchy and affect both individuals and professionals. Phishing, vishing, credit card fraud, investment scams, identity theft, etc. Scams take many forms and unfortunately continue to become more sophisticated. Through techniques such as invoice manipulation, “fake bank details” or “fake supplier” scams, bank transfers are also targeted by fraudsters.

To strengthen the security of money transfers and minimize the risk of human error, a Verification of Payee (VoP) scheme will become mandatory in banks for euro transfers.

This requirement will apply to the SEPA zone from October 9, 2025, and then to the entire European Union from July 9, 2027.

Your bank will automatically compare in real time the consistency between the information you provide and the details of the account holder to whom you are making the transfer.

VoP: What is it about?

Initiated by the European Commission (Regulation EU 2024/886), this system for verifying the recipient of a transfer (“Verification of Payee” or “VoP”) aims to further secure payments within the European Union.

Before each transfer, your bank will automatically compare in real time the consistency between the information you provide and the details of the account holder to whom you are making the transfer. Specifically, it will check that the name you entered matches the RIB/IBAN registered with the beneficiary’s bank.

If a discrepancy is detected, you will receive an alert. This will help prevent input errors and ensure that the money is sent to the intended recipient. In this way, you reduce the risk of fraud through identity theft.

Good to know: Verification (VoP) will be mandatory for all single euro transfers (standard and instant) between payment accounts. It will apply to electronic transfers made via the bank’s mobile app or website, as well as money transfers requested in person at a branch counter. Furthermore, VoP will only apply to the creation of new standing orders and the modification of existing standing orders.

How will this work?

When you make your transfer and before it is executed, the VoP will automatically check the information entered. You will then receive one of the following messages:

• • “Match”: This means that the name and IBAN match the beneficiary bank’s known data. In this case, you can proceed with your transaction and confirm your transfer.
  • “Close Match”: There is a partial match between the name and IBAN (for example, due to a typo or minor difference). You will then receive a message suggesting another name for the beneficiary, which you will need to verify and confirm.
  • “No Match”: The name and IBAN do not match the known data. In this case, it is strongly advised that you do not confirm the transfer and check the transfer information.

If you receive an alert message such as “No Match” or “Close Match”, it is recommended not to validate the transfer immediately and to check the banking details (by contacting the beneficiary through a secure and known channel). You will then have the opportunity to modify the information before validating your transfer.

Note that receiving an alert message will not block your transaction. At this stage, it is up to you to decide whether or not to proceed with the transaction.

In case of doubt, you should not hesitate to contact the beneficiary of the transfer to confirm their bank details with them.

If, despite the warning, you still decide to confirm the transfer without carrying out any additional checks, please be aware that in the event of an error or fraud, you will have to assume full responsibility. That is why, in case of doubt, you should not hesitate to contact the beneficiary of the transfer to confirm their bank details with them.

It is also possible that you may receive a message: “Verification not possible.” This means that the check could not be carried out. This can happen if, for example, the beneficiary’s account is closed, if they do not yet participate in the verification system, or for technical reasons.

Good to know: VoP will be mandatory for all individual SEPA transfers. Professionals and institutions making multiple transfers via file submission will have the option to opt out of the Verification of Payee scheme. To do so, they will need to contact their bank(s). Please note that opting out always also means that responsibility in case of problems or fraud related to the lack of beneficiary verification service is transferred to the client.

Individuals and businesses: Get ready starting today!

To ensure your usual transfers work smoothly from October onwards, you can start preparing for these changes now.

> Check and update the names of your registered beneficiaries. Be sure to use the exact name as shown on the beneficiary’s bank account statement (RIB), or if not available, the name that appears next to the IBAN on the invoice or payment request.

Abbreviations, acronyms, or nicknames such as “JP” for your friend Jean-Paul or “Landlord” (for rent payment), for example, will trigger a “No Match” alert message as soon as the VoP comes into effect. Also, pay attention to the spelling of names: “Laura Schmidt” will not match “Laura Schmit”, and you may receive a “Close Match” message.

> If you are a professional, make sure that your invoices and documents clearly indicate the official name associated with your bank account (the one registered with your bank on your RIB/IBAN). Also check that it is listed near your IBAN number on your invoices, order forms, and payment documents. If this is not the case, update your documents as soon as possible.

For example, if your bank has registered your business account under “Restauration Marie Muller S.A.” and you indicate “La table luxembourgeoise: chez Marie” on your invoices, after October, your clients will receive a “No Match” message.

> Finally, get into the habit of regularly checking your new and existing beneficiaries to ensure that all information is correct and up to date.

By making these adjustments today, you will save time when the VoP comes into effect and will not be slowed down by possible warning messages.

This new verification system will indeed require more attention from you when entering your bank transfer data, but above all, it will help to further secure your transactions and protect you against errors and fraud. More details about the implementation of the VoP are available on the ABBL website.

If you think you are a victim of fraud, visit the website cyberfraud.lu

* Content translated from French by the BIL GPT AI tool