Is your money safe? NAB, CommBank and ANZ roll out new rules that give them more control over YOUR finances
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We know how important it is to feel secure about your finances and how unsettling it can be when new rules and regulations pop up.Over the past few months, there’s been news of the ‘Big Four’ Australian banks—NAB, Commonwealth Bank, Westpac and ANZ—introducing changes to their payment systems. These changes reportedly involve increased control over the payments their customers can make.
It seems these new measures are due to the rise of digital currency and an increasing risk of fraud due to the world becoming increasingly ‘cashless’.
The banks are clamping down on payments going to ‘high-risk cryptocurrency exchanges’ and lowering payment limits to sites they may believe to be associated with cryptocurrency or digital assets. In other words, these banks are hoping to ensure their customers’ money doesn’t end up in places that may not be safe.
Is your money safe? Image Credit: Shutterstock
Naheed Gordon, a representative of the Commonwealth Bank, said the changes are all about protecting customers, saying: 'We're introducing new measures to help protect you from scams and fraud.'
Commonwealth Bank announced a $10,000 limit on monthly transfers to crypto exchanges, which is being rolled out at the start of September. Their revised terms and conditions state that customers who have requested higher payment limits must make a transaction from their increased limit within one month, or their limits may be reduced or revoked.
Westpac, on the other hand, announced in June that they are testing measures to lower the customer’s risk of falling victim to a scam.
Scott Collary, an executive at Westpac, claimed the security measures could save customers millions of dollars. He said: 'Often our customers only discover they've been scammed after the money has left the country, making recovery extremely difficult.’
‘The trial of our new security measures will better protect customers from scams. In particular, it will target investment scams, which have a devastating impact on our customers.'
NAB announced that they would cease 'transactions made to high-risk cryptocurrency exchanges' in an effort to save customers from what they've labelled a 'scam epidemic'. This action effectively stops the bank's customers from directly transferring funds to these exchanges or using a PayID for payments.
'If you attempt to make a payment using your NAB Visa credit or debit card to one of these exchanges, the transaction will be declined, and you will be shown a message which says, “Issuer Declined Transaction”,' a Q&A after the announcement clarified.
'If you still want to make a payment to this cryptocurrency exchange, you'll need to contact them to see what alternative methods of payment are available,' the bank said.
ANZ followed suit, confirming they will block some payments to ‘particular high-risk cryptocurrency platforms'.
A spokesperson continued, ‘ANZ is continually reviewing and adjusting our capabilities to keep customers safe as new scams emerge and scammers change how they operate.
But this news is not without its critics.
Drawing fire is CommBank’s revised terms and conditions stating the bank may 'suspend or close your account, cancel or suspend your card or other access method' to stop crypto-associated payments.
Self-proclaimed 'Crypto-King' Fred Schebesta is one vocal critic hitting back against the banks.
'Just got a notice from Commbank saying all of our Business Accounts will be frozen within 30 days if we buy more than $10,000 in crypto,' he posted.
'A Business Account? That's been doing Crypto Payments for 3+ years?’
'How does this actually help stop crypto scams? Blanket rules don't help anyone. Disgraceful.'
Speaking with Daily Mail Australia, Schebesta said: 'I'm not surprised that the Commonwealth Bank has announced they are limiting transfers to crypto exchanges.’
'The crypto market cap is estimated to be worth $1.87 trillion and there is a growing number of people getting into the crypto space.’
'Banks need to be careful not to hinder the evolution of digital finance.'
Many commenters on social media agreed.
'The banks are scared,' one user wrote.
'They know their days are numbered to defi (decentralised finance) so they think they can bully us out of it.'
'Clown world. The age of restricting where you can spend your own money is coming,' another replied.
A CommBank spokesperson quickly hit back, saying the move 'is all around protecting customers from scam risks that are associated with making certain payments to these crypto exchanges'.
'Basically it is just meant to help reduce the number and the amount of money lost by customers,' the spokesperson said.
'We are doing our best to strike a balance that keeps all customers safe whilst minimising the inconvenience to many.'
These new rules are undeniably a bit of a mixed bag. For some, they represent an unfair move to control a new frontier of finance and restrict the freedom to invest as seen fit. For others, they offer a vital safety net in a world where fraud and scams are a real, serious concern. Irrespective of which camp you are in, one thing is clear: the landscape of banking and finance is shifting.
What do you think of these changes? Are you impacted by this news? Let us know in the comments below.
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