VoP vs APP Fraud — What Really Happens in Real-Time Scenarios

Security 5 min read

APP Fraud: Fast, Targeted — and Brutal

APP fraud doesn’t sneak in through the backdoor. It walks right through the front — invited. That’s what makes it so dangerous. Your finance team gets an urgent request from what looks like a known contact. It sounds legitimate. Looks legitimate. They act. And the money is gone.

No hacks. No malware. Just a convincing request and a fast payment system — like SEPA Instant — that settles the transfer in under 10 seconds. No time to stop. No way to reverse.

So the question is: how do you protect a payment you can’t take back?

What VoP Actually Does — and Why It Matters

Verification of Payee (VoP) checks if the account name matches the IBAN. That’s it. A name check. But this simple step flips the script.

VoP inserts a real-time validation moment right before the money leaves the account. If the names don’t match? You get a warning, or the transaction is blocked. That’s not just helpful — that’s critical.

And as of the new EU Instant Payments Regulation, VoP isn’t a “nice-to-have” anymore. It’s mandatory:

For 20 EU countries: deadline October 2025
For the rest of SEPA: July 2027

Without VoP: A Common (and Costly) Scenario

Picture this:

You receive an email from a trusted supplier. It looks right.
They’ve “changed bank accounts” — here are the new details.
Your AP team updates the record and sends €45,000 via SEPA Instant.
Ten seconds later, the money lands in a mule account and vanishes.

No error. No fraud alert. No recourse.

That’s APP fraud — and it’s spreading fast. It’s not about breaking into your systems. It’s about hijacking trust.

With VoP: That Same Story Ends Differently

Now run that scenario again — but this time, VoP is active:

The new IBAN is entered.
The VoP service checks the account name in real time.
A mismatch is flagged.
The system alerts the user — or blocks the transfer entirely.

That tiny moment of friction? It just saved your company tens of thousands of euros.

It’s Not Just a Name Check. It’s a Trust Layer.

VoP does more than reduce fraud. It signals to your customers, auditors, and regulators that you take security seriously — and act accordingly.

In a landscape where APP scams now include deepfake voices, AI-generated emails, and social engineering at scale, name validation is the frontline defense. Not a checkbox — a barrier.

Who Must Comply (and When)

Let’s be clear:

If you’re a Payment Service Provider offering SEPA Instant, VoP isn’t optional.
Your compliance deadline depends on your location:
- October 2025 for the first 20 EU countries
- July 2027 for the rest of SEPA

Non-compliance means more than risk. It means regulatory exposure, reputational fallout, and operational liability.

VoP in the Real World: What to Expect

VoP isn’t plug-and-play. It shapes how your systems — and your teams — operate:

Onboarding: Legal entity names need to be precise. No shortcuts.
Retry logic: What happens when the name doesn’t match? Define it.
UX: The check must feel intuitive, not intrusive.
Supplier workflows: B2B fraud often hides in routine. VoP brings visibility.

The earlier you plan, the smoother your rollout. Trying to patch this later is expensive — and risky.

VoP Isn’t Everything — But It’s Where You Start

Will VoP stop all fraud? No. But it will stop the easiest fraud — the kind that doesn’t need tech, just timing and persuasion.

VoP gives your users a second of pause. A prompt. A final “are you sure?”
And that’s often the difference between routine and regret.

VoP helps you:

Avoid costly payouts to fraudsters
Stay on the right side of EU regulation
Build trust where it matters most

In a world of instant, irreversible payments, VoP isn’t a feature.
It’s a safeguard.

Ready to protect every payment? Let’s talk.