Starting from October 2025, bank transfers in the EU will require not only the IBAN but also a matching recipient name to prevent fraud

As of October 9, 2025, a new system will come into force in the European Union aimed at preventing fraud in bank transfers. From now on, it will no longer be enough to simply enter the IBAN — the recipient's name must also be provided and will be verified by the system against registered data.

Banks are implementing a so-called “traffic light” verification system. If the name and IBAN match exactly, the transfer goes through without delay — this is the “green light.” In cases of minor discrepancies, such as typos or spelling errors, the system will issue a warning, but the transfer will still be allowed — the “yellow light.” In the case of a significant mismatch, the system will show a “red light” — the transfer will be stopped, and the sender will be given the choice to either cancel the transaction or proceed at their own risk.

The main goal of the change is to protect customers from common fraud schemes such as transfers to fake accounts, falsification of payment details, or interception of communication between the customer and recipient. According to estimates, in Germany alone, more than €30 million is lost annually to such crimes.

The name and IBAN verification system will become mandatory for all banks across the EU, although specific implementations may vary — from color indicators to pop-up warnings. All of this is designed to help users quickly understand whether their transfer poses a risk.

In Northern Cyprus, such measures have not yet been officially introduced, but the EU’s experience may serve as a model for similar solutions in the future.