‘They very much look like a scam’: Financial experts wary over banks' latest Know-Your-Customer emails
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In a time where we should be vigilant against scams, it's no wonder that many Australians are raising eyebrows at recent communications from banks.
These emails and phone calls, which request personal details for identification purposes, are setting off alarm bells for customers who were taught to be wary of such requests.
The confusion stemmed from a clash between the federal government's anti-money laundering and counter-terrorism laws introduced in 2016.
These laws required banks to refresh client details every two years, and the longstanding advice to protect personal information from potential scammers.
This contradiction left many customers in a state of uncertainty and distrust.
In a recent interview, WA Consumer Protection Commissioner Trish Blake admitted that bank emails 'very much look like a scam'.
'I am still going to say to all the listeners, do not give your details over the phone, and do not click on links in an email,' Commissioner Blake said.
Instead, she suggests using the bank's official app or visiting a branch in person to update any necessary information.
Always remember that legitimate banking institutions should only ask for your details through secure means.
Financial writer Noel Whittaker also shared his frustrations with ABC Radio Perth.
He called the Know Your Customer (KYC) laws a 'weed plaguing the financial system'.
He expressed his desire for a change in legislation.
'It's just a total waste of time, and it costs so much money and so much time. It doesn't do one thing to stop fraud,' Mr Whittaker stated.
'These laws are supposed to stop scammers and bad people, but they don't stop them.'
A bank worker named Troy added to the conversation and described the difficult position banks find themselves in.
'I recommend clients don't answer or don't ID themselves from the inbound calls,' Troy said over the phone.
'But at the same time, we are required to call 20 clients weekly and ask if they need any assistance and make sure their existing banking services are working for them.'
Here are some tips to help you and your banking details stay safe:
Have you encountered similar email requests from your bank? How did you handle it? Share your experiences and fraud-proof tips in the comments below.
These emails and phone calls, which request personal details for identification purposes, are setting off alarm bells for customers who were taught to be wary of such requests.
The confusion stemmed from a clash between the federal government's anti-money laundering and counter-terrorism laws introduced in 2016.
These laws required banks to refresh client details every two years, and the longstanding advice to protect personal information from potential scammers.
This contradiction left many customers in a state of uncertainty and distrust.
WA Consumer Protection Commissioner Trish Blake recommended updating customer information through official banking apps or in the bank's nearest branch. Image Credit: Shutterstock/MVelishchuk
In a recent interview, WA Consumer Protection Commissioner Trish Blake admitted that bank emails 'very much look like a scam'.
'I am still going to say to all the listeners, do not give your details over the phone, and do not click on links in an email,' Commissioner Blake said.
Instead, she suggests using the bank's official app or visiting a branch in person to update any necessary information.
Always remember that legitimate banking institutions should only ask for your details through secure means.
Financial writer Noel Whittaker also shared his frustrations with ABC Radio Perth.
He called the Know Your Customer (KYC) laws a 'weed plaguing the financial system'.
He expressed his desire for a change in legislation.
'It's just a total waste of time, and it costs so much money and so much time. It doesn't do one thing to stop fraud,' Mr Whittaker stated.
'These laws are supposed to stop scammers and bad people, but they don't stop them.'
A bank worker named Troy added to the conversation and described the difficult position banks find themselves in.
'I recommend clients don't answer or don't ID themselves from the inbound calls,' Troy said over the phone.
'But at the same time, we are required to call 20 clients weekly and ask if they need any assistance and make sure their existing banking services are working for them.'
Here are some tips to help you and your banking details stay safe:
- Look for official channels: Always update your details through your bank's official app or website. If you don't use digital banking, visiting a branch is a safe alternative.
- Verify contact: If you receive a suspicious call or email, contact your bank directly using the number on their official website or your bank statements.
- Don't click on links: Avoid clicking on links in emails that ask for personal information. Scammers often use this tactic to steal your details.
- Check for personalisation: Genuine bank communications will often include personal details that a scammer wouldn't have, like the last few digits of your account number.
- Be sceptical: If an email or call feels off, trust your instincts. It's better to be safe than sorry.
- Report suspicious activity: If you suspect you've received a scam communication, report it to your bank and Scamwatch immediately.
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