Starting today, all service payments in Portugal must include the name of the final recipient, a move mandated by the Bank of Portugal to enhance transparency and combat banking fraud.

This new rule applies to payment references and direct debits, ensuring that the actual recipient's name is visible even when intermediaries like Easypay or Hipay are involved.

The initiative aims to enhance transparency by revealing the identity of payment recipients, which was previously obscured by contracted services.

The companies involved reported minimal costs associated with implementing this standard, with Eupago noting expenses related to technology development, testing, and monitoring.

Interestingly, most complaints received by Ifthenpay and Hipay were not related to fraud but stemmed from individuals forgetting their payment transactions.

Filipe Moura, co-founder of Ifthenpay, highlighted that while the fraud rate for Multibanco payments is already low, this change will further reduce specific fraud types, including the notorious 'Hello Dad, Hello Mom' scam.

The identification of beneficiaries has already been mandatory for bank transfers, leading to a significant 77% decrease in cases of the 'Hello Dad, Hello Mom' scam within the first three months of implementation.

This measure was announced in November 2024 and has been implemented following public consultation and adoption by the involved entities.

Overall, the three companies welcomed the increased transparency and potential reduction in fraud, including phishing and scams that exploit user trust.

Eduardo Barreto, CEO of Hipay in Portugal, described the measure as long overdue, emphasizing that it will significantly improve security and make fraudulent activities more challenging.

This initiative is part of the Bank of Portugal's ongoing efforts to prevent fraud in the sector, following a similar measure in May 2024 that required account holders to be identifiable via IBAN during transfers.

To further prevent fraud, users are advised to verify confirmation details, be cautious of unsolicited messages, avoid public networks for banking, and ensure that websites are secure.