Published On: November 24th, 2023
Scams and cybercrimes have been on the rise in Australia in recent years. According to statistics from the Australian Competition and Consumer Commission (ACCC), Australians lost nearly $2.5 million to scams in 2021 alone. This collaborative initiative between the Australian banks, ASX, aims to combine resources and crack down on scammers through more robust fraud prevention and detection capabilities and faster response times.
The new anti-scam measures by the Australian Banking Association
Under the initiative of the Australian Banking Association (ABA) and the Customer Owned Banking Association (COBA), all the best Australian banks (ASX) will work together and implement an industry-wide first Scam-Safe Accord. To cease Australian banks’ scams, the Scam-Safe Accord will be rolled out with six key measures:
- Banks will implement a confirmation of payee solution industry-wide for enhanced customer security
- Proactively addressing identity fraud, banks will take action to prevent the misuse of bank accounts
- Banks prioritise customer protection with the introduction of warnings and payment delays
- Significant investments will expand intelligence sharing across the banking sector to counter emerging threats
- To safeguard customers and put a stop to the Australian banks’ scams, banks will limit payments to high-risk channels
- Banks are set to enhance scam detection and response with a comprehensive anti-scam strategy
Anna Bligh, head of the Australian Banking Association, said the new accord reflects the banking sector’s commitment to safeguarding every Australian customer. “This Scam-Safe Accord is a new offensive in the war on scams,” she stated.
Figure 1: Australian Banking Association CEO Anna Bligh.
Who Is Responsible For Bank Frauds?
As Black Friday and Cyber Monday lure shoppers with billions in sales, the risk of scams peaks. While banks are implementing measures to prevent scams, the surge in fake websites remains a concern. This year alone, these imposter sites have defrauded unsuspecting shoppers of $500,000, a rising figure.
Figure 2: Australians are projected to exceed $6 billion in Black Friday spending this year.
Andrew Williams of the Australian Communications Consumer Action Network (ACCAN) warns of the growing resemblance between fake and legitimate websites. As the shopping season unfolds, vigilance becomes crucial. To stay scam-free, consumers are urged to scrutinise websites for imperceptible differences, emphasising the need for heightened awareness during this peak scam-risk season.
Figure 3: Online shopping scam: financial loss in 2023
Safer Banking Measures May Slow Transactions
The recent Australian Banks’ (ASX) news update states that the initiative aims to bolster warnings and introduce payment delays to safeguard Australians from scams. While acknowledging potential delays and increased signs, Anna Bligh assures customers of a significantly safer banking system. The proactive approach is expected to create a more secure environment, making it challenging for scammers to exploit the best Australian banks (ASX) and provide customers with excellent protection against fraudulent activities.
The Australian Banking Association pledges a multi-pronged industry-wide approach focused on disruption, detection, and response. For more updates on Australian banks (ASX) news, stay tuned.
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