The banking industry has announced a series of new measures to help customers avoid falling victim to scams and fraud, as well as to provide more support for small businesses affected by the COVID-19 pandemic. The announcement was made by the Australian Banking Association (ABA) on Friday, November 24, 2023, following a meeting with the Treasurer, Josh Frydenberg, and the Minister for Superannuation, Financial Services and the Digital Economy, Jane Hume.
New code of practice to protect customers from scams
One of the key initiatives announced by the ABA is the development of a new code of practice for banks to follow when dealing with customers who have been targeted by scammers. The code will outline the steps that banks will take to identify, prevent, and respond to scam attempts, as well as to educate and assist customers who have been affected by scams.
The code will also include a commitment by banks to reimburse customers who have lost money due to scams, provided that they have taken reasonable steps to protect themselves and have not acted fraudulently or with gross negligence. The code will apply to all types of scams, including phishing, identity theft, romance scams, investment scams, and business email compromise scams.
The ABA said that the code will be developed in consultation with consumer groups, regulators, and law enforcement agencies, and will be implemented by mid-2024. The code will complement the existing ePayments Code, which covers electronic payments such as online banking, card transactions, and mobile payments.
The ABA’s CEO, Anna Bligh, said that the code will provide more clarity and consistency for customers and banks when dealing with scams, and will help to reduce the financial and emotional impact of scams on customers.
“Scams are a serious and growing problem in Australia, costing Australians over $850 million in 2022, according to the ACCC. Scammers are becoming more sophisticated and convincing, and they target people from all walks of life. We want to make sure that our customers have the best possible protection and support when they encounter a scam, and that they can trust their bank to help them recover their money and prevent further losses,” Ms Bligh said.
More support for small businesses affected by COVID-19
Another measure announced by the ABA is the extension of the Small Business Relief Package, which was launched in March 2020 to provide relief and assistance for small businesses impacted by the COVID-19 pandemic. The package includes:
- Deferring loan repayments for up to six months
- Waiving fees and charges
- Offering interest-free periods or no interest rate increases
- Restructuring loans or extending loan terms
- Providing access to additional credit or emergency funding
- Referring customers to financial counsellors or other support services
The ABA said that the package will be extended until June 30, 2024, and that banks will continue to work with their small business customers on a case-by-case basis to provide tailored solutions that suit their individual circumstances and needs.
Ms Bligh said that the extension of the package reflects the ongoing challenges and uncertainty that many small businesses are facing due to the pandemic, and that banks are committed to supporting their recovery and growth.
“Small businesses are the backbone of our economy, and they have been hit hard by the pandemic. Many of them are still struggling to survive and adapt to the changing conditions and restrictions. We want to assure them that their bank is here to help them through this difficult time, and to provide them with the flexibility and assistance they need to get back on their feet and thrive,” Ms Bligh said.
Positive response from the government and stakeholders
The Treasurer, Josh Frydenberg, welcomed the announcement by the ABA, and praised the banking industry for its proactive and collaborative approach to addressing the issues of scams and small business support.
“The government is pleased to see the banking industry taking action to protect their customers from scams and fraud, and to extend their support for small businesses affected by COVID-19. These are important initiatives that will benefit millions of Australians and contribute to the economic recovery and resilience of our nation. The government looks forward to working with the ABA and the banks to ensure the successful implementation and oversight of these measures,” Mr Frydenberg said.
The Minister for Superannuation, Financial Services and the Digital Economy, Jane Hume, also commended the ABA and the banks for their announcement, and highlighted the role of the digital economy in enabling and enhancing the delivery of these measures.
“The digital economy is a key driver of innovation and growth in Australia, and it offers many opportunities and benefits for consumers and businesses. However, it also brings new risks and challenges, such as scams and cybercrime, that require constant vigilance and adaptation. The government is pleased to see the banking industry embracing the digital economy and using it to improve their services and security for their customers. The government will continue to support the banking industry and the digital economy through our policies and initiatives, such as the Consumer Data Right, the Digital Identity Framework, and the Cyber Security Strategy,” Ms Hume said.
The announcement by the ABA and the banks was also welcomed by various stakeholders, such as consumer groups, small business associations, and regulators, who expressed their support and appreciation for the measures, and their willingness to collaborate with the banking industry to ensure their effectiveness and accountability.
