Is checking the structure of an IBAN sufficient?

No. The check digit only validates that the IBAN is well-formed, not that it belongs to the correct beneficiary. A structurally correct IBAN could belong to a fraudster: verification of the account holder's name is essential.

What is Verification of Payee (VoP)?

Verification of Payee compares, before a transfer is executed, the name associated with the beneficiary's IBAN with the one entered by the payer. In case of discrepancy, the payer is alerted before validating the transaction.

What is supplier fraud?

A fraudster impersonates a known supplier and requests a change to their bank details. Subsequent payments are then sent to the fraudulent IBAN. Systematic verification of any IBAN change is the main safeguard.

How can you secure a change of bank details?

By confirming the request through an independent and known channel (callback to the usual contact), by verifying the beneficiary via VoP, and by submitting any change to double internal validation with traceability.

Does IBAN verification fall under AML-CFT?

It is related to it: monitoring beneficiaries and atypical flows is part of due diligence. It also complements payment security and fraud prevention obligations under European regulations.

Payment security

IBAN verification: check banking details to prevent wire transfer fraud

Wire transfer fraud, particularly fraudulent supplier fraud, costs companies considerable sums each year. Verifying an IBAN is not limited to checking its structure: you must ensure that the account belongs to the intended beneficiary. This guide reviews the available controls, from checksum calculation to the European beneficiary verification scheme.

Updated on July 31, 2026

Framework applicable to payment verification

IBAN verification is part of the strengthening of payment security driven by European regulations. Since 2025, the regulation on instant payments has required payment service providers in the euro area to provide a Verification of Payee (VoP) service: before executing a transfer, the name associated with the IBAN is compared to the one entered by the payer, who is alerted in case of discrepancy. This control complements fraud prevention measures and is articulated with AML/CFT due diligence obligations, with the IBAN and the beneficiary of a flow being among the elements to monitor.

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ISO 13616 standard: IBAN structure and check digit (modulo 97).
Regulation (EU) on instant payments: Verification of Payee (VoP) service.
Payment Services Directive (PSD2): security and authentication of transactions.
AML/CFT obligations: monitoring of beneficiaries and atypical flows.

Elements checked during IBAN verification

IBAN structure: length by country, country code, modulo 97 check digit.

Associated BIC code and consistency with the account-holding institution.

Match between the account holder's name and the expected beneficiary (VoP).

Proof of banking coordinates (RIB) and consistency with the supplier's identity.

History of IBANs used to detect a suspicious change of coordinates.

Risk signals: unusual foreign IBAN, last-minute change, unsecured channel.

Steps for verifying an IBAN

1
Structure check
Validation of IBAN format and check digit, then verification of BIC and country consistency.
2
Beneficiary verification
Comparison of the account holder's name with the expected beneficiary, via a VoP-type service.
3
Risk analysis
Detection of warning signals: IBAN change, urgent request, unverified channel, inconsistency with the supplier.
4
Validation and traceability
Confirmation of the beneficiary's registration through an internal validation process, with proof logging.

Frequently asked questions

Is checking the structure of an IBAN sufficient?: No. The check digit only validates that the IBAN is well-formed, not that it belongs to the correct beneficiary. A structurally correct IBAN could belong to a fraudster: verification of the account holder's name is essential.
What is Verification of Payee (VoP)?: Verification of Payee compares, before a transfer is executed, the name associated with the beneficiary's IBAN with the one entered by the payer. In case of discrepancy, the payer is alerted before validating the transaction.
What is supplier fraud?: A fraudster impersonates a known supplier and requests a change to their bank details. Subsequent payments are then sent to the fraudulent IBAN. Systematic verification of any IBAN change is the main safeguard.
How can you secure a change of bank details?: By confirming the request through an independent and known channel (callback to the usual contact), by verifying the beneficiary via VoP, and by submitting any change to double internal validation with traceability.
Does IBAN verification fall under AML-CFT?: It is related to it: monitoring beneficiaries and atypical flows is part of due diligence. It also complements payment security and fraud prevention obligations under European regulations.

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