Banks delay instant money transactions to prevent rising scams

In an era where convenience is king, instant transactions have become the norm.

However, this immediacy has also opened the door to a surge of scams that have already left many Australians out of pocket.

In response, banks are now considering slowing down the speed of transactions to help combat this growing issue.



Australia's banking sector is planning to put 'sand in the gears' of its real-time payment system, a move that could see the immediacy of money transfers reduced.

This decision comes as the Albanese government prepares to conclude the consultation process of its Scams Code Framework next week.


hand-using-card-buy-online-with-laptop.jpg
Banks may face delayed instant money transactions. Credit: Freepik


This critical piece of legislation aims to create a digital 'ecosystem' involving banks, telecommunication companies, and social media platforms, acknowledging their collective role in the chain of scams.

Financial Services Minister Stephen Jones said: ‘I look at this like a disease.’

'Unless we get various parts of the ecosystem working together, we won't be able to beat it.'

With Australians losing over $3 billion to scammers in 2022, the proposed laws will set minimum standards of conduct for digital players, clarifying each company's role and responsibility in preventing, spotting, and responding to scams.

‘These are sophisticated, multinational operations,’ Jones said.

‘The people involved are more likely to have a psychology degree than a prison sentence. And we’ve got to have a sophisticated operation to go after them.’

The proposed laws will also include a landmark principle: any company found to be in breach of the code will be liable for compensation.

This change aims to prevent banks and customers from bearing the cost of scams and fraudulent activities.



It's a departure from the British model set to take effect later this year, which requires banks to reimburse fraud victims for their losses unless it can be proven that the victim acted 'with gross negligence'.

However, Australian banking executives are concerned about a system focused on compensation instead of prevention.

‘Scams don’t come to customers through their banking apps. Scams come to customers through their SMS messages (and) through their social media, like Facebook,” said Australian Banking Association CEO Anna Bligh.

She described the UK model as a ‘honeypot’ for criminals.

‘It sounds very simple, doesn’t it? If you fall for a scam, the bank will just pick up the tab,’ she said.

‘I think there is a very good reason why no country anywhere on Earth has followed the United Kingdom in this regard, and that’s because it has made them a honeypot for scammers.’



The Australian banking sector has been proactive in reducing risk.

The Australian Banking Association (ABA) announced a $100 million overhaul of online payment systems aimed at improving the safety of transactions and protecting the public from the sly tactics of fraudulent activities.

ABA said that community-owned banks, credit unions, and commercial banks were ‘joining forces’ to address scammers with the Scam-Safe Accord.

Banks are rolling out a new system to match accounts with BSBs, preventing scammers from intercepting transactions between a payer and a payee.

Banks will also have a greater ability to veto payments to suspect 'high-risk' crypto accounts.

Bligh admitted that it was ironic that the industry was now looking to slow down its successful real-time payment system.

'If you're transferring money to someone you have never sent it to before and it's a particularly high amount, a number of banks are now looking at slowing that process down,' she said.

'Maybe holding (it) for 24 or 48 hours.'


skyscrapers-high-buildings-new-york-downtown-usa.jpg
Australian bank sectors joined forces to reduce the risk of fraudulent activities. Credit: Freepik


This move has the support of David Lacey from IDCARE.

‘Forewarning consumers to say, “Hey, more friction is on the way, but we don’t lose half a billion a year.” I think that might be worth it,’ he said.

He's keen to see biometric measures applied when opening and shifting money between accounts, including fingerprints and facial recognition software.

‘It’s an arms race. Over time, you can expect criminals will adapt,’ he said.

‘The last four weeks almost half the people to come to IDCARE had no idea how the criminals had got their data. But a lot of them (were) telling us they didn’t believe it when their account was blocked.’

‘They just thought it was an admin error.’



While the government is optimistic that its new National Anti-Scam Centre is making a difference, with a '16 per cent reduction in the losses to scams overall' in the fourth quarter of 2023, it's clear that more needs to be done.

‘The results are good…I’m not popping the champaign cork because this is early days,’ Jones said.

‘But it is a sign that the sort of strategy we are putting in place is working.’

However, consumers have expressed their doubts about this move.

‘It is a backwards move—I feel it is penalising customers who have done nothing wrong,’ one commented.

‘Spend some of the billions you make in profits to secure the network. Your customers are not to blame for your poor management,’ another added.

‘Do your jobs and secure your systems,’ one slammed.

Another reacted, ‘Provide opt-in education for inept banking customers.’

‘Treat people like adults and expand, not restrict, the availability of instant transfers—some of us have things to get done,’ a user commented.

Another asked, ‘Is it designed to help customers or give banks another excuse not to pay because of their flawed systems?’



Members of the SDC also shared their insights about the updated security system for confirming their account name and pay ID when making or collecting payments.

‘Too little and too late,’ one said.

‘The big FOUR BANKS are the biggest scammers of all. They make the highest profit of all,’ another commented.
Key Takeaways

  • Australian banks are considering delaying instant money transfers to combat the increasing number of scams.
  • The government is finalising consultations on a Scams Code Framework to establish shared responsibilities among banks, telecoms, and social platforms in preventing and responding to scams.
  • Banks may be held liable for compensation if found in breach of the upcoming code, which seeks to enforce minimum standards of conduct and responsibilities in scam prevention.
  • New measures like matching account details with BSBs and potential vetoes on payments to high-risk crypto accounts are part of the banking sector's efforts to introduce more security checks and reduce scam risks.
Do you think this move will prevent scams? How do you think this plan will impact your daily transactions? Share them with us in the comments below!
 
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I am currently in the process of changing my banking4 arrangements. I was pleased to receive an sms requesting me to ring my new bank regarding a 'possibly fraudulent' funds transfer transaction (at after 9pm, no less) of $5,000. Once I verified my identity and assured them that the details of the transaction were correct, and that the recipient was known to me, the funds were in the destination account within two minutes. Good to know that the (non-big 4) new bank is looking out for my interests.
 
In an era where convenience is king, instant transactions have become the norm.

However, this immediacy has also opened the door to a surge of scams that have already left many Australians out of pocket.

In response, banks are now considering slowing down the speed of transactions to help combat this growing issue.



Australia's banking sector is planning to put 'sand in the gears' of its real-time payment system, a move that could see the immediacy of money transfers reduced.

This decision comes as the Albanese government prepares to conclude the consultation process of its Scams Code Framework next week.


View attachment 39935
Banks may face delayed instant money transactions. Credit: Freepik


This critical piece of legislation aims to create a digital 'ecosystem' involving banks, telecommunication companies, and social media platforms, acknowledging their collective role in the chain of scams.

Financial Services Minister Stephen Jones said: ‘I look at this like a disease.’

'Unless we get various parts of the ecosystem working together, we won't be able to beat it.'

With Australians losing over $3 billion to scammers in 2022, the proposed laws will set minimum standards of conduct for digital players, clarifying each company's role and responsibility in preventing, spotting, and responding to scams.

‘These are sophisticated, multinational operations,’ Jones said.

‘The people involved are more likely to have a psychology degree than a prison sentence. And we’ve got to have a sophisticated operation to go after them.’

The proposed laws will also include a landmark principle: any company found to be in breach of the code will be liable for compensation.

This change aims to prevent banks and customers from bearing the cost of scams and fraudulent activities.



It's a departure from the British model set to effect later this year, which requires banks to reimburse fraud victims for their losses unless it can be proven that the victim acted 'with gross negligence'.

However, Australian banking executives are concerned about a system focused on compensation instead of prevention.

‘Scams don’t come to customers through their banking apps. Scams come to customers through their SMS messages (and) through their social media, like Facebook,” said Australian Banking Association CEO Anna Bligh.

She described the UK model as a ‘honeypot’ for criminals.

‘It sounds very simple, doesn’t it? If you fall for a scam, the bank will just pick up the tab,’ she said.

‘I think there is a very good reason why no country anywhere on Earth has followed the United Kingdom in this regard, and that’s because it has made them a honeypot for scammers.’



The Australian banking sector has been proactive in reducing risk.

The Australian Banking Association (ABA) announced a $100 million overhaul of online payment systems aimed at improving the safety of transactions and protecting the public from the sly tactics of fraudulent activities.

ABA said that community-owned banks, credit unions, and commercial banks were ‘joining forces’ to address scammers with the Scam-Safe Accord.

Banks are rolling out a new system to match accounts with BSBs, preventing scammers from intercepting transactions between a payer and a payee.

Banks will also have a greater ability to veto payments to suspect 'high-risk' crypto accounts.

Bligh admitted that it was ironic that the industry was now looking to slow down its successful real-time payment system.

'If you're transferring money to someone you have never sent it to before and it's a particularly high amount, a number of banks are now looking at slowing that process down,' she said.

'Maybe holding (it) for 24 or 48 hours.'


View attachment 39936
Australian bank sectors joined forces to reduce the risk of fraudulent activities. Credit: Freepik


This move has the support of David Lacey from IDCARE.

‘Forewarning consumers to say, “Hey, more friction is on the way, but we don’t lose half a billion a year.” I think that might be worth it,’ he said.

He's keen to see biometric measures applied when opening and shifting money between accounts, including fingerprints and facial recognition software.

‘It’s an arms race. Over time, you can expect criminals will adapt,’ he said.

‘The last four weeks almost half the people to come to IDCARE had no idea how the criminals had got their data. But a lot of them (were) telling us they didn’t believe it when their account was blocked.’

‘They just thought it was an admin error.’



While the government is optimistic that its new National Anti-Scam Centre is making a difference, with a '16 per cent reduction in the losses to scams overall' in the fourth quarter of 2023, it's clear that more needs to be done.

‘The results are good…I’m not popping the champaign cork because this is early days,’ Jones said.

‘But it is a sign that the sort of strategy we are putting in place is working.’

However, consumers have expressed their doubts about this move.

‘It is a backwards move—I feel it is penalising customers who have done nothing wrong,’ one commented.

‘Spend some of the billions you make in profits to secure the network. Your customers are not to blame for your poor management,’ another added.

‘Do your jobs and secure your systems,’ one slammed.

Another reacted, ‘Provide opt-in education for inept banking customers.’

‘Treat people like adults and expand, not restrict, the availability of instant transfers—some of us have things to get done,’ a user commented.

Another asked, ‘Is it designed to help customers or give banks another excuse not to pay because of their flawed systems?’



Members of the SDC also shared their insights about the updated security system for confirming their account name and pay ID when making or collecting payments.

‘Too little and too late,’ one said.

‘The big FOUR BANKS are the biggest scammers of all. They make the highest profit of all,’ another commented.
Key Takeaways

  • Australian banks are considering delaying instant money transfers to combat the increasing number of scams.
  • The government is finalising consultations on a Scams Code Framework to establish shared responsibilities among banks, telecoms, and social platforms in preventing and responding to scams.
  • Banks may be held liable for compensation if found in breach of the upcoming code, which seeks to enforce minimum standards of conduct and responsibilities in scam prevention.
  • New measures like matching account details with BSBs and potential vetoes on payments to high-risk crypto accounts are part of the banking sector's efforts to introduce more security checks and reduce scam risks.
Do you think this move will prevent scams? How do you think this plan will impact your daily transactions? Share them with us in the comments below!
For the last couple of years every time we do a transaction from between $5 & $5000, within two minutes there is an email from the bank saying there has been a transaction. If all banks did this and maybe held transferring for 2 hours to give time to notify banks, then it might be a start.
 
So the banks don't like being held accountable for their pathetic lack of adequate verification of BSB and Account details. Something which customers have no ability at all to verify.

But, doing so requires them to roll back the instant payment system that they charged business for.

Before this system was created the banks profited by taking the money out of the payer's account and investing it in the short-term money market before sending it to the payee.

Now they will still charge the increased fees and be able to get the short-term interest rates.

All to make us safer... of course.

It certainly cannot be because they are scared other countries will follow the British example and make them liable for their own greed driven incompetence.
 
For the last couple of years every time we do a transaction from between $5 & $5000, within two minutes there is an email from the bank saying there has been a transaction. If all banks did this and maybe held transferring for 2 hours to give time to notify banks, then it might be a start.
Yes a good start - however as I’ve said before on this site, due to lack of willingness to pay more people you can hold on waiting to report a suspicious transaction for 2 hours!!
 
In an era where convenience is king, instant transactions have become the norm.

However, this immediacy has also opened the door to a surge of scams that have already left many Australians out of pocket.

In response, banks are now considering slowing down the speed of transactions to help combat this growing issue.



Australia's banking sector is planning to put 'sand in the gears' of its real-time payment system, a move that could see the immediacy of money transfers reduced.

This decision comes as the Albanese government prepares to conclude the consultation process of its Scams Code Framework next week.


View attachment 39935
Banks may face delayed instant money transactions. Credit: Freepik


This critical piece of legislation aims to create a digital 'ecosystem' involving banks, telecommunication companies, and social media platforms, acknowledging their collective role in the chain of scams.

Financial Services Minister Stephen Jones said: ‘I look at this like a disease.’

'Unless we get various parts of the ecosystem working together, we won't be able to beat it.'

With Australians losing over $3 billion to scammers in 2022, the proposed laws will set minimum standards of conduct for digital players, clarifying each company's role and responsibility in preventing, spotting, and responding to scams.

‘These are sophisticated, multinational operations,’ Jones said.

‘The people involved are more likely to have a psychology degree than a prison sentence. And we’ve got to have a sophisticated operation to go after them.’

The proposed laws will also include a landmark principle: any company found to be in breach of the code will be liable for compensation.

This change aims to prevent banks and customers from bearing the cost of scams and fraudulent activities.



It's a departure from the British model set to effect later this year, which requires banks to reimburse fraud victims for their losses unless it can be proven that the victim acted 'with gross negligence'.

However, Australian banking executives are concerned about a system focused on compensation instead of prevention.

‘Scams don’t come to customers through their banking apps. Scams come to customers through their SMS messages (and) through their social media, like Facebook,” said Australian Banking Association CEO Anna Bligh.

She described the UK model as a ‘honeypot’ for criminals.

‘It sounds very simple, doesn’t it? If you fall for a scam, the bank will just pick up the tab,’ she said.

‘I think there is a very good reason why no country anywhere on Earth has followed the United Kingdom in this regard, and that’s because it has made them a honeypot for scammers.’



The Australian banking sector has been proactive in reducing risk.

The Australian Banking Association (ABA) announced a $100 million overhaul of online payment systems aimed at improving the safety of transactions and protecting the public from the sly tactics of fraudulent activities.

ABA said that community-owned banks, credit unions, and commercial banks were ‘joining forces’ to address scammers with the Scam-Safe Accord.

Banks are rolling out a new system to match accounts with BSBs, preventing scammers from intercepting transactions between a payer and a payee.

Banks will also have a greater ability to veto payments to suspect 'high-risk' crypto accounts.

Bligh admitted that it was ironic that the industry was now looking to slow down its successful real-time payment system.

'If you're transferring money to someone you have never sent it to before and it's a particularly high amount, a number of banks are now looking at slowing that process down,' she said.

'Maybe holding (it) for 24 or 48 hours.'


View attachment 39936
Australian bank sectors joined forces to reduce the risk of fraudulent activities. Credit: Freepik


This move has the support of David Lacey from IDCARE.

‘Forewarning consumers to say, “Hey, more friction is on the way, but we don’t lose half a billion a year.” I think that might be worth it,’ he said.

He's keen to see biometric measures applied when opening and shifting money between accounts, including fingerprints and facial recognition software.

‘It’s an arms race. Over time, you can expect criminals will adapt,’ he said.

‘The last four weeks almost half the people to come to IDCARE had no idea how the criminals had got their data. But a lot of them (were) telling us they didn’t believe it when their account was blocked.’

‘They just thought it was an admin error.’



While the government is optimistic that its new National Anti-Scam Centre is making a difference, with a '16 per cent reduction in the losses to scams overall' in the fourth quarter of 2023, it's clear that more needs to be done.

‘The results are good…I’m not popping the champaign cork because this is early days,’ Jones said.

‘But it is a sign that the sort of strategy we are putting in place is working.’

However, consumers have expressed their doubts about this move.

‘It is a backwards move—I feel it is penalising customers who have done nothing wrong,’ one commented.

‘Spend some of the billions you make in profits to secure the network. Your customers are not to blame for your poor management,’ another added.

‘Do your jobs and secure your systems,’ one slammed.

Another reacted, ‘Provide opt-in education for inept banking customers.’

‘Treat people like adults and expand, not restrict, the availability of instant transfers—some of us have things to get done,’ a user commented.

Another asked, ‘Is it designed to help customers or give banks another excuse not to pay because of their flawed systems?’



Members of the SDC also shared their insights about the updated security system for confirming their account name and pay ID when making or collecting payments.

‘Too little and too late,’ one said.

‘The big FOUR BANKS are the biggest scammers of all. They make the highest profit of all,’ another commented.
Key Takeaways

  • Australian banks are considering delaying instant money transfers to combat the increasing number of scams.
  • The government is finalising consultations on a Scams Code Framework to establish shared responsibilities among banks, telecoms, and social platforms in preventing and responding to scams.
  • Banks may be held liable for compensation if found in breach of the upcoming code, which seeks to enforce minimum standards of conduct and responsibilities in scam prevention.
  • New measures like matching account details with BSBs and potential vetoes on payments to high-risk crypto accounts are part of the banking sector's efforts to introduce more security checks and reduce scam risks.
Do you think this move will prevent scams? How do you think this plan will impact your daily transactions? Share them with us in the comments below!
Let me get this right, the finance industry creates this flawed monster open to abuse, but don't want to do something to help customers for fear of making their creation worse, rather than eliminating the cause. At least the UK branch took responsibility for their actions unlike the rest of the World imo.
 
In an era where convenience is king, instant transactions have become the norm.

However, this immediacy has also opened the door to a surge of scams that have already left many Australians out of pocket.

In response, banks are now considering slowing down the speed of transactions to help combat this growing issue.



Australia's banking sector is planning to put 'sand in the gears' of its real-time payment system, a move that could see the immediacy of money transfers reduced.

This decision comes as the Albanese government prepares to conclude the consultation process of its Scams Code Framework next week.


View attachment 39935
Banks may face delayed instant money transactions. Credit: Freepik


This critical piece of legislation aims to create a digital 'ecosystem' involving banks, telecommunication companies, and social media platforms, acknowledging their collective role in the chain of scams.

Financial Services Minister Stephen Jones said: ‘I look at this like a disease.’

'Unless we get various parts of the ecosystem working together, we won't be able to beat it.'

With Australians losing over $3 billion to scammers in 2022, the proposed laws will set minimum standards of conduct for digital players, clarifying each company's role and responsibility in preventing, spotting, and responding to scams.

‘These are sophisticated, multinational operations,’ Jones said.

‘The people involved are more likely to have a psychology degree than a prison sentence. And we’ve got to have a sophisticated operation to go after them.’

The proposed laws will also include a landmark principle: any company found to be in breach of the code will be liable for compensation.

This change aims to prevent banks and customers from bearing the cost of scams and fraudulent activities.



It's a departure from the British model set to effect later this year, which requires banks to reimburse fraud victims for their losses unless it can be proven that the victim acted 'with gross negligence'.

However, Australian banking executives are concerned about a system focused on compensation instead of prevention.

‘Scams don’t come to customers through their banking apps. Scams come to customers through their SMS messages (and) through their social media, like Facebook,” said Australian Banking Association CEO Anna Bligh.

She described the UK model as a ‘honeypot’ for criminals.

‘It sounds very simple, doesn’t it? If you fall for a scam, the bank will just pick up the tab,’ she said.

‘I think there is a very good reason why no country anywhere on Earth has followed the United Kingdom in this regard, and that’s because it has made them a honeypot for scammers.’



The Australian banking sector has been proactive in reducing risk.

The Australian Banking Association (ABA) announced a $100 million overhaul of online payment systems aimed at improving the safety of transactions and protecting the public from the sly tactics of fraudulent activities.

ABA said that community-owned banks, credit unions, and commercial banks were ‘joining forces’ to address scammers with the Scam-Safe Accord.

Banks are rolling out a new system to match accounts with BSBs, preventing scammers from intercepting transactions between a payer and a payee.

Banks will also have a greater ability to veto payments to suspect 'high-risk' crypto accounts.

Bligh admitted that it was ironic that the industry was now looking to slow down its successful real-time payment system.

'If you're transferring money to someone you have never sent it to before and it's a particularly high amount, a number of banks are now looking at slowing that process down,' she said.

'Maybe holding (it) for 24 or 48 hours.'


View attachment 39936
Australian bank sectors joined forces to reduce the risk of fraudulent activities. Credit: Freepik


This move has the support of David Lacey from IDCARE.

‘Forewarning consumers to say, “Hey, more friction is on the way, but we don’t lose half a billion a year.” I think that might be worth it,’ he said.

He's keen to see biometric measures applied when opening and shifting money between accounts, including fingerprints and facial recognition software.

‘It’s an arms race. Over time, you can expect criminals will adapt,’ he said.

‘The last four weeks almost half the people to come to IDCARE had no idea how the criminals had got their data. But a lot of them (were) telling us they didn’t believe it when their account was blocked.’

‘They just thought it was an admin error.’



While the government is optimistic that its new National Anti-Scam Centre is making a difference, with a '16 per cent reduction in the losses to scams overall' in the fourth quarter of 2023, it's clear that more needs to be done.

‘The results are good…I’m not popping the champaign cork because this is early days,’ Jones said.

‘But it is a sign that the sort of strategy we are putting in place is working.’

However, consumers have expressed their doubts about this move.

‘It is a backwards move—I feel it is penalising customers who have done nothing wrong,’ one commented.

‘Spend some of the billions you make in profits to secure the network. Your customers are not to blame for your poor management,’ another added.

‘Do your jobs and secure your systems,’ one slammed.

Another reacted, ‘Provide opt-in education for inept banking customers.’

‘Treat people like adults and expand, not restrict, the availability of instant transfers—some of us have things to get done,’ a user commented.

Another asked, ‘Is it designed to help customers or give banks another excuse not to pay because of their flawed systems?’



Members of the SDC also shared their insights about the updated security system for confirming their account name and pay ID when making or collecting payments.

‘Too little and too late,’ one said.

‘The big FOUR BANKS are the biggest scammers of all. They make the highest profit of all,’ another commented.
Key Takeaways

  • Australian banks are considering delaying instant money transfers to combat the increasing number of scams.
  • The government is finalising consultations on a Scams Code Framework to establish shared responsibilities among banks, telecoms, and social platforms in preventing and responding to scams.
  • Banks may be held liable for compensation if found in breach of the upcoming code, which seeks to enforce minimum standards of conduct and responsibilities in scam prevention.
  • New measures like matching account details with BSBs and potential vetoes on payments to high-risk crypto accounts are part of the banking sector's efforts to introduce more security checks and reduce scam risks.
Do you think this move will prevent scams? How do you think this plan will impact your daily transactions? Share them with us in the comments below!
Then leave it in my account until the actual transfer, not your usual practice on weekends of taking it out of my account and putting it on the short-term money market for banks' benefit
 
In an era where convenience is king, instant transactions have become the norm.

However, this immediacy has also opened the door to a surge of scams that have already left many Australians out of pocket.

In response, banks are now considering slowing down the speed of transactions to help combat this growing issue.



Australia's banking sector is planning to put 'sand in the gears' of its real-time payment system, a move that could see the immediacy of money transfers reduced.

This decision comes as the Albanese government prepares to conclude the consultation process of its Scams Code Framework next week.


View attachment 39935
Banks may face delayed instant money transactions. Credit: Freepik


This critical piece of legislation aims to create a digital 'ecosystem' involving banks, telecommunication companies, and social media platforms, acknowledging their collective role in the chain of scams.

Financial Services Minister Stephen Jones said: ‘I look at this like a disease.’

'Unless we get various parts of the ecosystem working together, we won't be able to beat it.'

With Australians losing over $3 billion to scammers in 2022, the proposed laws will set minimum standards of conduct for digital players, clarifying each company's role and responsibility in preventing, spotting, and responding to scams.

‘These are sophisticated, multinational operations,’ Jones said.

‘The people involved are more likely to have a psychology degree than a prison sentence. And we’ve got to have a sophisticated operation to go after them.’

The proposed laws will also include a landmark principle: any company found to be in breach of the code will be liable for compensation.

This change aims to prevent banks and customers from bearing the cost of scams and fraudulent activities.



It's a departure from the British model set to take effect later this year, which requires banks to reimburse fraud victims for their losses unless it can be proven that the victim acted 'with gross negligence'.

However, Australian banking executives are concerned about a system focused on compensation instead of prevention.

‘Scams don’t come to customers through their banking apps. Scams come to customers through their SMS messages (and) through their social media, like Facebook,” said Australian Banking Association CEO Anna Bligh.

She described the UK model as a ‘honeypot’ for criminals.

‘It sounds very simple, doesn’t it? If you fall for a scam, the bank will just pick up the tab,’ she said.

‘I think there is a very good reason why no country anywhere on Earth has followed the United Kingdom in this regard, and that’s because it has made them a honeypot for scammers.’



The Australian banking sector has been proactive in reducing risk.

The Australian Banking Association (ABA) announced a $100 million overhaul of online payment systems aimed at improving the safety of transactions and protecting the public from the sly tactics of fraudulent activities.

ABA said that community-owned banks, credit unions, and commercial banks were ‘joining forces’ to address scammers with the Scam-Safe Accord.

Banks are rolling out a new system to match accounts with BSBs, preventing scammers from intercepting transactions between a payer and a payee.

Banks will also have a greater ability to veto payments to suspect 'high-risk' crypto accounts.

Bligh admitted that it was ironic that the industry was now looking to slow down its successful real-time payment system.

'If you're transferring money to someone you have never sent it to before and it's a particularly high amount, a number of banks are now looking at slowing that process down,' she said.

'Maybe holding (it) for 24 or 48 hours.'


View attachment 39936
Australian bank sectors joined forces to reduce the risk of fraudulent activities. Credit: Freepik


This move has the support of David Lacey from IDCARE.

‘Forewarning consumers to say, “Hey, more friction is on the way, but we don’t lose half a billion a year.” I think that might be worth it,’ he said.

He's keen to see biometric measures applied when opening and shifting money between accounts, including fingerprints and facial recognition software.

‘It’s an arms race. Over time, you can expect criminals will adapt,’ he said.

‘The last four weeks almost half the people to come to IDCARE had no idea how the criminals had got their data. But a lot of them (were) telling us they didn’t believe it when their account was blocked.’

‘They just thought it was an admin error.’



While the government is optimistic that its new National Anti-Scam Centre is making a difference, with a '16 per cent reduction in the losses to scams overall' in the fourth quarter of 2023, it's clear that more needs to be done.

‘The results are good…I’m not popping the champaign cork because this is early days,’ Jones said.

‘But it is a sign that the sort of strategy we are putting in place is working.’

However, consumers have expressed their doubts about this move.

‘It is a backwards move—I feel it is penalising customers who have done nothing wrong,’ one commented.

‘Spend some of the billions you make in profits to secure the network. Your customers are not to blame for your poor management,’ another added.

‘Do your jobs and secure your systems,’ one slammed.

Another reacted, ‘Provide opt-in education for inept banking customers.’

‘Treat people like adults and expand, not restrict, the availability of instant transfers—some of us have things to get done,’ a user commented.

Another asked, ‘Is it designed to help customers or give banks another excuse not to pay because of their flawed systems?’



Members of the SDC also shared their insights about the updated security system for confirming their account name and pay ID when making or collecting payments.

‘Too little and too late,’ one said.

‘The big FOUR BANKS are the biggest scammers of all. They make the highest profit of all,’ another commented.
Key Takeaways

  • Australian banks are considering delaying instant money transfers to combat the increasing number of scams.
  • The government is finalising consultations on a Scams Code Framework to establish shared responsibilities among banks, telecoms, and social platforms in preventing and responding to scams.
  • Banks may be held liable for compensation if found in breach of the upcoming code, which seeks to enforce minimum standards of conduct and responsibilities in scam prevention.
  • New measures like matching account details with BSBs and potential vetoes on payments to high-risk crypto accounts are part of the banking sector's efforts to introduce more security checks and reduce scam risks.
Do you think this move will prevent scams? How do you think this plan will impact your daily transactions? Share them with us in the comments below!
Then leave it in my account until the actual transfer, not your usual practice on weekends of taking it out of my account and putting it on the short-term money market for banks' benefit
This is just another way for banks to hold on to your money so they can use it to make money on the markets as they do now. If they are not doing this then why does it take 3 days for money paid via BPay to reach your biller? And why have overnight transactions now stopped being processed before close of business instead of at midnight as used to be the case. The banks are just trying to hold onto our money longer. If you don’t fall for a scam then any money taken from your account should be returned by those that took it or the bank that allowed it to be taken without your permission. I have been fighting Microsoft since October 2023 because they took a payment out twice in one day for the one item. Despite dozens of emails to them, their billing department as listed on my PayPal account and now I am told that I have to argue this through a community member thread. They have now told me that they only refund things in the last 60 day. Well I’ve been trying for over 3 months to get someone to even acknowledge my issue in the billing department and had no answer. Now I’m told tough luck you are too late! How pathetic is that? I’ve put in a disputed transaction with my bank and I must admit that they at least have taken the issue up. Just as they did when Apple started billing me for something I had never subscribed to! So watch out people and be aware that these big companies don’t need to help you when they get it wrong. They don’t give a damn. We are stuck using their products but unless you can find help in less than 60 days you won’t get your money back.
 
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It happens now with CBA for Any amount. They put a hold on the transaction. But I bet if you then realise that the details are incorrect and request they stop it going through they'll say they can't do anything. So why bother?
Just leave the big 4. Smaller banks are so much better. I like the Greater Bank.
 
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As a frequent online banking user I worry that banks do not use 2FA (2 factor authentication) when logging on. Surely that is a frontline gatekeeper!!
Yes - but they do use it on anything new ( an account you have not used before or an account not in your list) - if you have set it up when requested. ANZ do this and with the Bendigo I use a token to get access to my account - ANZ recently introduced this for business accounts but not personal - I asked them why no all accounts - they said it should be coming for all.
 
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In an era where convenience is king, instant transactions have become the norm.

However, this immediacy has also opened the door to a surge of scams that have already left many Australians out of pocket.

In response, banks are now considering slowing down the speed of transactions to help combat this growing issue.



Australia's banking sector is planning to put 'sand in the gears' of its real-time payment system, a move that could see the immediacy of money transfers reduced.

This decision comes as the Albanese government prepares to conclude the consultation process of its Scams Code Framework next week.


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Banks may face delayed instant money transactions. Credit: Freepik


This critical piece of legislation aims to create a digital 'ecosystem' involving banks, telecommunication companies, and social media platforms, acknowledging their collective role in the chain of scams.

Financial Services Minister Stephen Jones said: ‘I look at this like a disease.’

'Unless we get various parts of the ecosystem working together, we won't be able to beat it.'

With Australians losing over $3 billion to scammers in 2022, the proposed laws will set minimum standards of conduct for digital players, clarifying each company's role and responsibility in preventing, spotting, and responding to scams.

‘These are sophisticated, multinational operations,’ Jones said.

‘The people involved are more likely to have a psychology degree than a prison sentence. And we’ve got to have a sophisticated operation to go after them.’

The proposed laws will also include a landmark principle: any company found to be in breach of the code will be liable for compensation.

This change aims to prevent banks and customers from bearing the cost of scams and fraudulent activities.



It's a departure from the British model set to take effect later this year, which requires banks to reimburse fraud victims for their losses unless it can be proven that the victim acted 'with gross negligence'.

However, Australian banking executives are concerned about a system focused on compensation instead of prevention.

‘Scams don’t come to customers through their banking apps. Scams come to customers through their SMS messages (and) through their social media, like Facebook,” said Australian Banking Association CEO Anna Bligh.

She described the UK model as a ‘honeypot’ for criminals.

‘It sounds very simple, doesn’t it? If you fall for a scam, the bank will just pick up the tab,’ she said.

‘I think there is a very good reason why no country anywhere on Earth has followed the United Kingdom in this regard, and that’s because it has made them a honeypot for scammers.’



The Australian banking sector has been proactive in reducing risk.

The Australian Banking Association (ABA) announced a $100 million overhaul of online payment systems aimed at improving the safety of transactions and protecting the public from the sly tactics of fraudulent activities.

ABA said that community-owned banks, credit unions, and commercial banks were ‘joining forces’ to address scammers with the Scam-Safe Accord.

Banks are rolling out a new system to match accounts with BSBs, preventing scammers from intercepting transactions between a payer and a payee.

Banks will also have a greater ability to veto payments to suspect 'high-risk' crypto accounts.

Bligh admitted that it was ironic that the industry was now looking to slow down its successful real-time payment system.

'If you're transferring money to someone you have never sent it to before and it's a particularly high amount, a number of banks are now looking at slowing that process down,' she said.

'Maybe holding (it) for 24 or 48 hours.'


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Australian bank sectors joined forces to reduce the risk of fraudulent activities. Credit: Freepik


This move has the support of David Lacey from IDCARE.

‘Forewarning consumers to say, “Hey, more friction is on the way, but we don’t lose half a billion a year.” I think that might be worth it,’ he said.

He's keen to see biometric measures applied when opening and shifting money between accounts, including fingerprints and facial recognition software.

‘It’s an arms race. Over time, you can expect criminals will adapt,’ he said.

‘The last four weeks almost half the people to come to IDCARE had no idea how the criminals had got their data. But a lot of them (were) telling us they didn’t believe it when their account was blocked.’

‘They just thought it was an admin error.’



While the government is optimistic that its new National Anti-Scam Centre is making a difference, with a '16 per cent reduction in the losses to scams overall' in the fourth quarter of 2023, it's clear that more needs to be done.

‘The results are good…I’m not popping the champaign cork because this is early days,’ Jones said.

‘But it is a sign that the sort of strategy we are putting in place is working.’

However, consumers have expressed their doubts about this move.

‘It is a backwards move—I feel it is penalising customers who have done nothing wrong,’ one commented.

‘Spend some of the billions you make in profits to secure the network. Your customers are not to blame for your poor management,’ another added.

‘Do your jobs and secure your systems,’ one slammed.

Another reacted, ‘Provide opt-in education for inept banking customers.’

‘Treat people like adults and expand, not restrict, the availability of instant transfers—some of us have things to get done,’ a user commented.

Another asked, ‘Is it designed to help customers or give banks another excuse not to pay because of their flawed systems?’



Members of the SDC also shared their insights about the updated security system for confirming their account name and pay ID when making or collecting payments.

‘Too little and too late,’ one said.

‘The big FOUR BANKS are the biggest scammers of all. They make the highest profit of all,’ another commented.
Key Takeaways

  • Australian banks are considering delaying instant money transfers to combat the increasing number of scams.
  • The government is finalising consultations on a Scams Code Framework to establish shared responsibilities among banks, telecoms, and social platforms in preventing and responding to scams.
  • Banks may be held liable for compensation if found in breach of the upcoming code, which seeks to enforce minimum standards of conduct and responsibilities in scam prevention.
  • New measures like matching account details with BSBs and potential vetoes on payments to high-risk crypto accounts are part of the banking sector's efforts to introduce more security checks and reduce scam risks.
Do you think this move will prevent scams? How do you think this plan will impact your daily transactions? Share them with us in the comments below!
I've had emails from Telstra stating that my money transfer to pay their account did not work and I should contact them. I don't think this is correct and believe it to be a scam email and they have used the bank delays as a tool to create the scam emails.
 
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