You ask what responsibility banks have when a customer’s single-digit error in an account number sends the money to the wrong place (Money, 8 November). It’s considerable, because of faults in the banks’ own processes. In most cases the person requesting the money transfer provides the intended recipient’s name as well as account number. This could act as a check, but banks seem not to make it. In systems analysis class, I was taught to use check digits to protect account numbers. Credit card companies do this and they protect completely against single digit errors, so the banks are not following best practice. As we continue to move to online banking, there will be many new opportunities to get account numbers wrong. These could be greatly reduced by re-engineered processes that required less copying of critical data.
David Flint
Visiting fellow, Cass Business School
