Banking Institutions Implement Innovative Technologies and Enhanced Security Measures to Protect Australians from Scams
Banks are planning more stringent security measures, including biometric identity scans, additional double checks when making payments to new recipients, and enhanced intelligence sharing to combat scammers.
The Financial Services Minister, Stephen Jones, has urged banks to bolster their protections against scams, leading to the launch of a campaign by major banking associations on August 12. Australian Banking Association CEO, Anna Bligh, emphasized the importance of implementing advanced technologies and controls to safeguard customers from fraudulent activities.
The Albanese government is also planning to introduce legislation mandating tough obligations on banks to prevent scammers from accessing their services.
What Banks Are Doing to Prevent Scams?
Banks have invested $100 million in a new confirmation of payee system to ensure secure transactions and have pledged to introduce additional warnings and payment delays to enhance customer protection under the Scam-Safe Accord. Furthermore, the banking industry is set to implement stronger technology and controls to prevent identity fraud, including biometric verification for new account holders.
Customers will soon experience more payment delays and warnings when transferring money to unfamiliar recipients to detect potential fraud. All banks are gearing up to comply with new mandatory codes and standards mandated by the government.
The Customer Owned Banking Association has also prioritized scam prevention and detection measures to disrupt fraudulent activities. The government is heavily investing in anti-scam initiatives, with plans to legislate a Scams Code Framework, enforce new mandatory industry codes, and hold institutions accountable for reporting and responding to scams.
Banks, telcos, and digital platforms will be required to strengthen controls and take proactive actions to combat scams effectively and protect consumers from falling victim to fraudulent schemes.
