Banks join forces to squash scams! Is your money safer now?
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Life brings an unfortunate reality—the constant need to be cautious of scammers who are devising new and sophisticated methods to deceive hardworking Australians and steal their money.
Recently, the losses caused by these heartless criminals have reached a staggering $3.1 billion in 2022, up over a billion from the previous year. This number could be even higher, considering that according to reports, more than a third of the victims choose not to report their losses.
To tackle this alarming issue, the Australian Competition and Consumer Commission (ACCC) has taken action, giving the country's banking sector the green light to unite in developing a comprehensive industry-wide standard to combat these scam artists.
The Australian Banking Association (ABA) has been granted conditional authorisation by the ACCC, allowing them to collaborate openly and without any suspicions of collusion.
This collaborative effort aims to create a robust defence system against the scammers' malicious plans, providing much-needed protection for the Australian public's hard-earned money.
By working together, the banking sector can effectively pool its expertise and resources to stay one step ahead of these criminals and ensure the safety of its customers' finances.
Catriona Lowe, Deputy Chair of the ACCC, mentioned that the banking sector had an imperative role in halting fraudsters' efforts and recovering lost funds.
'A coordinated response across government, law enforcement and the private sector is essential to effectively combat scams that are evolving rapidly and with increasing sophistication,' she said.
To ensure progress in dealing with these issues, the ACCC granted authorisation, but with the condition that banks must keep the ACCC informed about their actions and progress.
'The ABA will be required to provide regular reports on any industry initiatives they propose, such as circumstances where customers would be reimbursed or entitled to remedies,' said Lowe.
Not only that, but the government has also recently announced a new decree, a cross-industry code for banks, telcos, social media platforms, and other organisations, that should prevent scammers from taking advantage of innocent and unsuspecting citizens.
Assistant Treasurer Stephen Jones has pushed for this long-overdue protection and thinks victims still don't know how to act if they suspect they've been scammed.
'It's a crisis. And more needs to be done, a team Australia effort having a business, having telecommunications companies, banks, social media platforms and government working together,' he said.
'I'm anticipating early next year for the legislation.'
He added that consumers should call their banks as soon as they think something is wrong, but adds that the process can take too long, during which the victims' funds can end up in the wrong hands.
‘If you're doing that, and it's taking you an hour or so to get a response or even longer, that first action the consumer is taking to protect themselves is not working in the way it should, and we must strengthen the system,’ Jones added.
The legislation outlines the protection banks should give their customers, the when's and the how's of compensation payments, and hopefully end scammers' ill-gotten gains.
So, what does this all mean for the average Aussie? With the cross-government legislation and the ABA's industry-wide standard, many can be more assured that banks are taking responsibility to protect customer funds better than ever before.
Members, no one knows when a scammer may target you or a loved one, so be sure to stay alert and don't give out your personal information to those you don't know. Feel free to check Scam Watch forum on the SDC website for more tips and information!
If you ever feel like you, or someone close to you, has been a victim of a scam, don't hesitate to contact your bank, the police or the ACCC as soon as you can to limit the damage!
What are your thoughts on this news? Share them with us in the comments below!
Recently, the losses caused by these heartless criminals have reached a staggering $3.1 billion in 2022, up over a billion from the previous year. This number could be even higher, considering that according to reports, more than a third of the victims choose not to report their losses.
To tackle this alarming issue, the Australian Competition and Consumer Commission (ACCC) has taken action, giving the country's banking sector the green light to unite in developing a comprehensive industry-wide standard to combat these scam artists.
The Australian Banking Association (ABA) has been granted conditional authorisation by the ACCC, allowing them to collaborate openly and without any suspicions of collusion.
The ACCC has granted conditional authorisation to the Australian Banking Association, allowing banks to work together without fear of accusations of collusion. Credit: Shutterstock.
This collaborative effort aims to create a robust defence system against the scammers' malicious plans, providing much-needed protection for the Australian public's hard-earned money.
By working together, the banking sector can effectively pool its expertise and resources to stay one step ahead of these criminals and ensure the safety of its customers' finances.
Catriona Lowe, Deputy Chair of the ACCC, mentioned that the banking sector had an imperative role in halting fraudsters' efforts and recovering lost funds.
'A coordinated response across government, law enforcement and the private sector is essential to effectively combat scams that are evolving rapidly and with increasing sophistication,' she said.
To ensure progress in dealing with these issues, the ACCC granted authorisation, but with the condition that banks must keep the ACCC informed about their actions and progress.
'The ABA will be required to provide regular reports on any industry initiatives they propose, such as circumstances where customers would be reimbursed or entitled to remedies,' said Lowe.
Not only that, but the government has also recently announced a new decree, a cross-industry code for banks, telcos, social media platforms, and other organisations, that should prevent scammers from taking advantage of innocent and unsuspecting citizens.
Assistant Treasurer Stephen Jones has pushed for this long-overdue protection and thinks victims still don't know how to act if they suspect they've been scammed.
'It's a crisis. And more needs to be done, a team Australia effort having a business, having telecommunications companies, banks, social media platforms and government working together,' he said.
'I'm anticipating early next year for the legislation.'
He added that consumers should call their banks as soon as they think something is wrong, but adds that the process can take too long, during which the victims' funds can end up in the wrong hands.
‘If you're doing that, and it's taking you an hour or so to get a response or even longer, that first action the consumer is taking to protect themselves is not working in the way it should, and we must strengthen the system,’ Jones added.
The legislation outlines the protection banks should give their customers, the when's and the how's of compensation payments, and hopefully end scammers' ill-gotten gains.
So, what does this all mean for the average Aussie? With the cross-government legislation and the ABA's industry-wide standard, many can be more assured that banks are taking responsibility to protect customer funds better than ever before.
Members, no one knows when a scammer may target you or a loved one, so be sure to stay alert and don't give out your personal information to those you don't know. Feel free to check Scam Watch forum on the SDC website for more tips and information!
If you ever feel like you, or someone close to you, has been a victim of a scam, don't hesitate to contact your bank, the police or the ACCC as soon as you can to limit the damage!
What are your thoughts on this news? Share them with us in the comments below!
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