The banking industry in Australia has announced a new Scam-Safe Accord, a set of anti-scam measures to help customers avoid losing their money to fraudsters. The Accord is a joint effort by the Australian Banking Association (ABA) and the Customer Owned Banking Association (COBA), representing 76 banks and credit unions in the country.
What is the Scam-Safe Accord?
The Scam-Safe Accord is a comprehensive plan to disrupt, detect, and respond to scams that target bank customers. It outlines several initiatives that banks will undertake to enhance their fraud prevention and detection capabilities, as well as to improve their response and recovery actions.
Some of the key initiatives include:
- Investing $100 million in a new confirmation of payee system, which will allow customers to verify the identity of the recipient before making a payment. This will reduce the risk of sending money to the wrong account or to a scammer.
- Introducing more warnings and delays when customers make payments to new payees or increase their payment limits. This will give customers more time to think and check if they are being scammed.
- Implementing biometric checks for new account openings, such as facial recognition or fingerprint scanning. This will prevent identity theft and account misuse by scammers.
- Expanding the intelligence sharing across the sector, by joining the Australian Financial Crimes Exchange and the Fraud Reporting Exchange. This will enable banks to report and act on scam information faster and increase the chances of recovering stolen funds.
Why is the Scam-Safe Accord needed?
The Scam-Safe Accord is a response to the rising tide of scams that are affecting Australians. According to Scamwatch, scammers stole $3.1 billion from Australians in 2022 alone, an increase of 34% from the previous year. The most common types of scams were investment scams, dating and romance scams, and online shopping scams.
Scammers are becoming more sophisticated and convincing, using various tactics to manipulate and deceive their victims. They often impersonate government agencies, businesses, or trusted individuals, and use fake websites, emails, phone calls, or text messages to lure their targets. They also exploit the COVID-19 pandemic, the bushfire crisis, and other events to create a sense of urgency or sympathy.
The banking industry recognises that scams are a serious issue that requires a coordinated and proactive approach. As Mike Lawrence, the CEO of COBA, said: “As scammers work hard to devise new ways to steal money, it’s critical that governments, industry and consumers remain vigilant to make Australia a hard target for scammers.”
How will the Scam-Safe Accord benefit customers?
The Scam-Safe Accord aims to provide customers with a higher level of protection and confidence when using banking services. By implementing the anti-scam measures, banks will be able to:
- Reduce the number of successful scams and the amount of money lost by customers.
- Increase the awareness and education of customers about the types and signs of scams and how to avoid them.
- Improve the customer experience and satisfaction by making banking transactions more secure and convenient.
- Strengthen the trust and reputation of the banking industry as a responsible and reliable partner for customers.
The Scam-Safe Accord is expected to be rolled out across all Australian banks and credit unions over 2024 and 2025. Customers will be notified by their banks when the new features and systems are available and how to use them.
The banking industry also encourages customers to take their own steps to protect themselves from scams, such as:
- Never giving out personal or financial information to anyone you don’t know or trust, especially online or over the phone.
- Always checking the legitimacy of the contact or the website before making a payment or providing any details.
- Reporting any suspicious or unusual activity on your bank account or card to your bank immediately.
- Contacting Scamwatch or the police if you think you have been scammed or have seen a scam.
