Overview
- Since October 9, EU‑mandated Verification of Payee runs on transfers, returning Match, Close Match or No Match results within seconds.
- Recent tests show some German banks reveal an account holder’s complete legal name from an IBAN plus a surname or even an initial, without notifying the person.
- The European Payments Council recommends data minimization for Close Match replies, yet implementations vary by bank, with ING‑DiBa stating it limits output to the fragments entered.
- Banks cite anti‑scraping protections, but consumer groups say safeguards differ by provider, creating uneven risks for identity probing and for vulnerable users such as trans people.
- Traffic‑light workflows require manual confirmation on yellow or red and apply to new standing orders, and consumers are urged to verify the official name on file, correct payee data, and request written data disclosures.