Luxembourg Banks to Implement Recipient Verification for Online Transfers

Luxembourg is set to enhance the security of online bank transfers. Starting in October, a new recipient verification system will be implemented. This system will automatically check the compatibility between the recipient's name and IBAN during a transfer. The goal is to ensure the intended recipient matches the account holder. According to Ananda Kautz from The Luxembourg Banker's Association (ABBL), users will receive an alert if an anomaly is detected, allowing them to authorize the payment despite the warning. This measure aims to reduce fraud, with the ABBL noting a 70% fraud reduction in the Netherlands using a similar system. Data from ABBL indicates that 46% of cyberattacks recorded by the EU Agency for Cybersecurity (ENISA) between January 2023 and June 2024 targeted banks. Online fraud in Luxembourg has increased by 20.8% in 2024, according to the grand-ducal police.