Banks in Australia are implementing additional security measures to protect customers from scammers. These measures include double checks when making payments to new recipients and enhanced identity verification, including the use of biometrics. The aim is to prevent fraudulent activities and safeguard Australians from falling victim to scams.
The call for stronger protections against scammers came from Financial Services Minister Stephen Jones during a speech at the National Press Club. In response, the two major banking associations representing the country’s big four banks, community banks, and credit unions launched a campaign on August 12 to raise awareness about these efforts.
Australian Banking Association CEO Anna Bligh emphasized that banks are working tirelessly to keep their customers safe from scammers. She highlighted various tactics and tools deployed by banks, such as payment warnings, delays in transfers, and blocking transactions to suspicious accounts.
Bligh expressed concern over the increasing number of people targeted by scammers who aim to steal money. She reassured customers that banks utilize cutting-edge technology round-the-clock to identify potential scam activity and put a stop to it.
To further combat scams, the Albanese government plans to introduce legislation imposing strict obligations on banks regarding scam prevention. As part of these efforts, banks have invested $100 million in a confirmation of payee system that allows individuals to verify they are transferring money correctly.
Under the Scam-Safe Accord initiated by the banking industry, additional warnings and payment delays will be implemented for customer protection. Banks will also enhance their technology and controls against identity fraud while expanding intelligence sharing across the sector.
All Australian banks will adopt anti-scam strategies in compliance with new mandatory codes set by the government. The industry-wide confirmation of payee system is currently being developed with Australia becoming one of only a few countries globally with this capability.
In an interview, Bligh explained that customers will receive warnings or questions when transferring money for someone they haven’t paid before as an added precautionary measure against scams.
The Customer Owned Banking Association also emphasized its commitment towards preventing scams within its member institutions through innovative measures and collaboration across industries.
Financial Services Minister Stephen Jones announced that $67 million in taxpayer funds would be allocated towards combating scams. This includes plans for legislating a Scams Code Framework with mandatory industry codes applicable to banks as well as telcos and digital platforms.
Jones stressed that companies like banks have a responsibility not only report but also respond effectively against scams. Telecommunication companies will be required to block known scam numbers while social media platforms must take stronger anti-scam actions such as verifying advertisers’ identities and removing scam pages.
The minister believes this approach holds institutions accountable while providing clear responsibilities outlined in legislation which would lead them towards actively detecting and disrupting scams.