Just to note a few things:
- Confirmation of Payee is the mechanism that checks the name you enter for the payee, against the actual name on the account.
- There are also warning screens asking you why you are sending money, or asking you to confirm that you do really want to send money - this is to prevent impersonation fraud.
The warnings are designed to be scary. They are designed to make you stop and think.
There isn’t a “legal” requirement here persay. This relates to the Contingent Reimbursement Model (which Monzo follows in spirit, but is not a signatory of) and requires the bank to show they have done various things to educate customers about scams, show effective warnings during the payment process and ultimately refund customers where they have taken reasonable care.
Scams and phishing (known as Authorised Push Payment fraud) are an industry issue and there is signifiant pressure from consumer groups for the industry to do more to protect customers against it. If you look at the UK Finance figures, you’ll see a huge (almost 50%) rise in volumes of APP fraud.