Never get scammed again! Discover how banks are stepping up their game with name-checking tech!
- Replies 2
In an era where digital transactions are the norm, scams have become an unfortunate and prevalent part of everyone’s lives.
However, banks are taking a stand against these fraudulent activities by introducing a new initiative known as the 'Scam-Safe Accord'.
This initiative is set to revolutionise the banking industry and provide an additional layer of security to protect Australians from falling victim to scams.
The Scam-Safe Accord is a comprehensive plan that includes key measures designed to combat scams.
One of the most significant measures is introducing name-checking technology, known as confirmation of payee solution technology. This will be used whenever someone opens a new bank account or initiates a payment.
It allows the bank to verify the account name when initiating or collecting payment, adding an extra layer of security to the transaction process.
The Australian Banking Association (ABA) and Community Owned Banking Association (COBA) are the driving forces behind this initiative. They believe this technology will be a game-changer in the fight against scams, providing a much-needed shield to protect Australians' hard-earned money.
Westpac Chief Executive Peter King has hailed the Scam-Safe Accord as a significant step forward in protecting Australians.
'Falling victim to a scam can have devastating and life-changing consequences,' he said. 'Today, we are sending a clear message to these criminals that they have no business in Australia, and we are doing more to stop them from ripping off our customers.'
The Scam-Safe Accord is not just about name-checking technology. It also includes other measures such as limiting payments to high-risk channels, alerting customers to potential scam payments, implementing biometric checks to prevent misuse of bank accounts, and expanding intelligence sharing across the sector.
Mr King also highlighted that this initiative would be one of the biggest technical uplifts for Australian banking recently.
'Westpac has continued to invest in uplifting its scam detection and prevention measures, which has stopped customers [from] losing $235 million in the last year and sees us now detecting over 60 per cent of all cases,' he said.
The introduction of the Scam-Safe Accord comes at a crucial time. Australians have already lost close to $430 million to scams this year.
This initiative is a much-needed step towards curbing this alarming trend and ensuring that everyone can conduct their banking activities with peace of mind.
Understanding the Scam-Safe Accord and How It Protects You
The Scam-Safe Accord is a comprehensive plan designed to protect Australians from falling victim to scams. Here's a closer look at the measures included in the initiative:
1. Name-checking technology: Banks are introducing a universal payee confirmation system across all banks by 2024 and 2025, featuring name-checking technology to help customers avoid paying scammers by verifying payee identities.
2. Biometric checks: By the end of 2024, banks will improve their measures against identity fraud by implementing biometric checks like facial or fingerprint recognition for new online account openings. These checks will focus on behavioural patterns and physical biometrics to verify customer identities.
3. Customer alerts and payment delays: Banks will implement enhanced warnings and delays, especially for first-time transfers or increased payment limits, to safeguard customers from scams. This approach aims to prevent hasty transactions under scammer pressure.
4. Expanding intelligence sharing: By mid-2024, all ABA and COBA member banks will join the Australian Financial Crimes Exchange (AFCX) and the Fraud Reporting Exchange in 2024-2025, significantly boosting intelligence sharing to combat scams. This collaboration will enable faster prevention of scams and quicker recovery of customer funds.
5. Limiting Payments to High-Risk Channels: Banks will restrict payments to high-risk channels, like certain cryptocurrency platforms, to protect customers from theft. This measure is in response to identifying these channels as scammer tools for moving money out of Australia, making fund recovery almost impossible.
By understanding these measures, people can better protect themselves from scams and feel more secure in online banking.
Remember, if something seems too good to be true, it probably is. Always be vigilant and report any suspicious activity to your bank immediately.
If you suspect you may have been scammed, please reach out and report your experience to ACCC: https://www.scamwatch.gov.au/report-a-scam
What are your thoughts on these new measures, members? Have you or someone you know been a victim of a scam? Share your experiences and thoughts in the comments below.
However, banks are taking a stand against these fraudulent activities by introducing a new initiative known as the 'Scam-Safe Accord'.
This initiative is set to revolutionise the banking industry and provide an additional layer of security to protect Australians from falling victim to scams.
The Scam-Safe Accord is a comprehensive plan that includes key measures designed to combat scams.
One of the most significant measures is introducing name-checking technology, known as confirmation of payee solution technology. This will be used whenever someone opens a new bank account or initiates a payment.
The Scam-Safe Accord has six key measures designed to combat scams. Credit: cottonbro studio/Pexels
It allows the bank to verify the account name when initiating or collecting payment, adding an extra layer of security to the transaction process.
The Australian Banking Association (ABA) and Community Owned Banking Association (COBA) are the driving forces behind this initiative. They believe this technology will be a game-changer in the fight against scams, providing a much-needed shield to protect Australians' hard-earned money.
Westpac Chief Executive Peter King has hailed the Scam-Safe Accord as a significant step forward in protecting Australians.
'Falling victim to a scam can have devastating and life-changing consequences,' he said. 'Today, we are sending a clear message to these criminals that they have no business in Australia, and we are doing more to stop them from ripping off our customers.'
The Scam-Safe Accord is not just about name-checking technology. It also includes other measures such as limiting payments to high-risk channels, alerting customers to potential scam payments, implementing biometric checks to prevent misuse of bank accounts, and expanding intelligence sharing across the sector.
Mr King also highlighted that this initiative would be one of the biggest technical uplifts for Australian banking recently.
'Westpac has continued to invest in uplifting its scam detection and prevention measures, which has stopped customers [from] losing $235 million in the last year and sees us now detecting over 60 per cent of all cases,' he said.
The introduction of the Scam-Safe Accord comes at a crucial time. Australians have already lost close to $430 million to scams this year.
This initiative is a much-needed step towards curbing this alarming trend and ensuring that everyone can conduct their banking activities with peace of mind.
Understanding the Scam-Safe Accord and How It Protects You
The Scam-Safe Accord is a comprehensive plan designed to protect Australians from falling victim to scams. Here's a closer look at the measures included in the initiative:
1. Name-checking technology: Banks are introducing a universal payee confirmation system across all banks by 2024 and 2025, featuring name-checking technology to help customers avoid paying scammers by verifying payee identities.
3. Customer alerts and payment delays: Banks will implement enhanced warnings and delays, especially for first-time transfers or increased payment limits, to safeguard customers from scams. This approach aims to prevent hasty transactions under scammer pressure.
4. Expanding intelligence sharing: By mid-2024, all ABA and COBA member banks will join the Australian Financial Crimes Exchange (AFCX) and the Fraud Reporting Exchange in 2024-2025, significantly boosting intelligence sharing to combat scams. This collaboration will enable faster prevention of scams and quicker recovery of customer funds.
5. Limiting Payments to High-Risk Channels: Banks will restrict payments to high-risk channels, like certain cryptocurrency platforms, to protect customers from theft. This measure is in response to identifying these channels as scammer tools for moving money out of Australia, making fund recovery almost impossible.
By understanding these measures, people can better protect themselves from scams and feel more secure in online banking.
Remember, if something seems too good to be true, it probably is. Always be vigilant and report any suspicious activity to your bank immediately.
If you suspect you may have been scammed, please reach out and report your experience to ACCC: https://www.scamwatch.gov.au/report-a-scam
What are your thoughts on these new measures, members? Have you or someone you know been a victim of a scam? Share your experiences and thoughts in the comments below.
.png){kind=icon}
