The NZ government has finally laid down the law for NZ banks and imposed a deadline of September 2024 for them to have increased protection for customers around scams and stopping fraudulent activity.
Some headway has been made by the banks already and an anti-scam centre has been set up, but there is still a lot for them to do in a relativity short time frame.
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This will offer more protection for consumers when making a single transaction payment, but it becomes a lot more complex when trying to apply the same checks to business payments whereby these are processed in bulk through batch payment runs, e.g. 20th of the month creditor payments and fortnightly payroll.
There are a range of additional issues complicating business payments:
- limitations for characters used to name the payee,
- Unable to easily correct the payment file if a single translation is found to be incorrect
- Multiple names being used for the same bank account.
For organisations that have multiple people in their finance team, they will still need to look at more robust solutions to protect themselves against the ever-increasing and smart scenarios that fraudsters use to infiltrate your company. Detecting fraud and payment errors before instructions are sent to the bank saves a lot of time and heartache.
Coincidently, this is something that VigilantPay can help you with.
