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Unusual security step promises stronger protection for savings

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Unusual security step promises stronger protection for savings

1756177857335.png Unusual security step promises stronger protection for savings
New customers will soon need to verify their identity with a selfie. Credit: Freepik

When scammers cost Australians over $2 billion last year, with those aged 65 and over losing $99.6 million, it's clear that traditional banking security isn't cutting it anymore. Starting next month, National Australia Bank customers will face something entirely new when opening accounts: the requirement to take a selfie to prove they are who they claim to be.



It might sound like something your grandchildren would do on social media, but this digital photograph could be the key to protecting your financial future from increasingly sophisticated fraudsters.



The Big Picture: Banking's Security Revolution



NAB customers will now need to provide a selfie as part of opening any new account or product, but this isn't just one bank going it alone. NAB's move is part of a much larger transformation happening across Australian banking.








How the Selfie System Actually Works



The process is surprisingly straightforward. The system uses advanced app technology with your smartphone camera to scan your face and match it against the photo on your identity document.



Think of it like a digital version of what a bank teller does when they check your photo ID, except the computer can spot forgeries and stolen documents more effectively than the human eye.



Stolen credentials can be used to open accounts in your name, so instead of just verifying document authenticity, NAB will now authenticate the actual individual.



This means even if criminals have managed to steal or create fake copies of your driver's licence or passport, they can't impersonate you without also having your physical appearance.




What Happens During Verification


When opening a new NAB account online, you'll be asked to:


- Take a photo of your government ID (driver's licence or passport)


- Take a selfie using your phone or computer camera


- The system compares your live photo with your ID photo


- Account opening proceeds if everything matches




The technology behind this isn't new—it's similar to how passport control works at airports or how some people unlock their phones. This is similar to how the MyID app scans your face when adding your passport, so many Australians have already used comparable systems without realising it.









Why This Matters Most for Older Australians



The statistics paint a sobering picture for Australian seniors. While overall scam losses fell by 25.9 per cent to $2 billion in 2024, older Australians remain disproportionately targeted by criminals.



People over 65 were the only age group to experience an increase in reported losses in 2023, with those losses increasing by 13.3 per cent to $120 million.



The trend continues, with those aged 65 and over reporting the highest losses of any age group at $99.6 million.



Did you know?


Did you know?
Investment scams are particularly targeting seniors with retirement savings, with criminals creating sophisticated fake websites and dashboards that appear to show growing returns while preventing any withdrawals.



People over 65 are disproportionately impacted by investment scams, with many reporting significant losses after being contacted through social media, as criminals prey on seniors and retirees looking for investment opportunities.









The ACCC shared a heartbreaking example: an elderly woman lost her life savings after seeing a deepfake Elon Musk video on social media, clicking the link and registering her details online.



She was assigned a 'financial advisor' and given access to an online dashboard where she could see her 'investment' making returns, but couldn't withdraw her money.



Privacy Concerns: What You Need to Know



Any discussion about facial recognition technology naturally raises privacy questions, and these concerns are entirely valid. Biometric information is considered sensitive information under the Privacy Act, which means it receives special protection under Australian law.



Technology expert Trevor Long, quoted in the original story, highlighted the key concern: 'What we need to worry about is where is this information being held. This is the last thing we want, our names, our details and photos of ourselves being hacked.'









Australian banks must ensure that biometric data is collected, stored, and processed in accordance with Australian Privacy Principles, and global best practices around consent, transparency, and data minimisation.



Many modern biometric systems address these concerns by using on-device or cloud-based encryption to ensure that sensitive data is not centrally stored or easily compromised.




What Does This Mean For You



  • Your facial recognition data is treated as sensitive information under Australian privacy law

  • Banks must get your consent before collecting it

  • Data must be stored securely with encryption

  • It can only be used for the stated purpose

  • This gives you stronger privacy protections than standard personal information




The reality is that privacy concerns with biometric data collection stem from the fact that once compromised, biometric data cannot be easily changed or reset. Unlike a password or PIN, you can't simply choose a new face if your facial recognition data is stolen.



However, the alternative—continuing with current systems that allow criminals to steal hundreds of millions of dollars from vulnerable Australians each year—presents its own significant risks.









Your Options if You're Not Comfortable



NAB has recognised that not everyone will feel comfortable with this new technology. The bank stated clearly that there are no plans to make existing customers verify using selfies, and anyone concerned about the new system can still visit a branch in person to open new accounts.



This is important for seniors who prefer face-to-face banking or have concerns about using smartphone cameras. The traditional branch network remains available for customers who want human interaction when setting up accounts.





Example Scenario


  1. Margaret, 72, wants to open a new savings account for her grandchildren but isn't comfortable taking selfies. She can visit her local NAB branch where staff will verify her identity using traditional methods. The selfie requirement only applies to online account opening, not in-branch services.





For those who do choose to use the online system, transparency in how biometric information is used, and a clear articulation of value to the customer, will be key to gaining and maintaining public trust.









The Bigger Banking Security Revolution



NAB's selfie system is just the beginning. Within the next 12 months, we can expect early deployments of in-branch biometric systems in Australian banks, likely beginning with facial recognition or fingerprint verification at key service points.



NAB expects to phase out passwords for internet banking within the next five years, replacing them with passkeys and biometric recognition technology. This represents a fundamental shift in how we prove our identity to financial institutions.



The transformation extends beyond individual banks. The Scam-Safe Accord promises to roll out a confirmation-of-payee system across all Australian banks, funded by a $100 million investment to strengthen security with which people transfer money, with design kicked off and target rollout over 2025.








International Context: Australia Joins Global Trend



Australia isn't alone in this shift. A recent study found that 77 per cent of Australian financial services have already implemented, or plan to implement, facial recognition within 12 months. ANZ Bank recently launched voice authentication technology on mobile for funds transfers, while Mastercard allows selfies for payment confirmation.



Globally, the technology is advancing rapidly. China's biometric banking market is expected to grow to $5 billion by 2035, with major banks like Industrial and Commercial Bank of China already incorporating biometric technologies.




Key Takeaways



  • You can still visit branches if you're uncomfortable with digital verification

  • This technology aims to protect you from the $2 billion lost to scams annually

  • Your biometric data receives special privacy protection under Australian law

  • The change is part of a global shift toward more secure banking methods




Protecting Yourself Beyond Banking



While NAB's selfie system addresses identity theft at the bank level, there are additional steps you can take to protect yourself:









The bank fraud prevention technology only works if criminals can't get hold of your identity documents in the first place. Regularly check your letterbox to prevent mail theft, create strong unique passwords for online accounts, and turn on multi-factor authentication where possible.



If you do become a victim of identity theft, IDCARE can help—this dedicated, not-for-profit organisation provides specialised support and guidance for protecting your identity from further theft or misuse, with services free of charge and tailored to your individual situation.




Free Help Available


IDCARE: Australia's national identity and cyber support service


- Phone: 1800 595 160


- Website: idcare.org


- Free counselling and practical support for identity theft victims


- Available to all Australians regardless of which bank you use




The introduction of selfie verification represents a significant step forward in protecting Australian consumers from financial crime, but it requires understanding and adaptation from all of us.



What This Means For You


As confronting as it might seem to take a selfie for your bank, the alternative—allowing criminals to continue stealing hundreds of millions of dollars from vulnerable Australians—is far worse. While authorities acknowledge that scammers are sophisticated and highly motivated criminals, maintaining vigilance and pivoting defences is essential.



The technology isn't perfect, and legitimate privacy concerns deserve serious consideration. However, for a generation that has watched scam losses devastate their peers' retirement savings, embracing new security measures may be the key to protecting what you've worked your whole life to build.



Whether you choose to use NAB's new selfie system or prefer the traditional branch experience, the most important thing is staying informed about these changes and the threats they're designed to counter.



What are your thoughts on banks requiring selfies for new accounts? Do you feel the security benefits outweigh the privacy concerns, or would you prefer to stick with in-person banking? Share your views in the comments below—your perspective could help other readers navigate these important changes to banking security.




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Umm is this an old article. I say that because of thie statement.

"All major banks must implement at least one biometric check for new customers opening accounts online by the end of 2024, making this the biggest change to banking security in decades."

Last I looked it's 2025.
 
Umm is this an old article. I say that because of thie statement.

"All major banks must implement at least one biometric check for new customers opening accounts online by the end of 2024, making this the biggest change to banking security in decades."

Last I looked it's 2025.
I often find 'rehashed' articles here.
 
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Reactions: Gus and 7777
How is this going to work for the aged and infirm? What happens when you really need to send someone you trust to do your banking?
 
And how do oldies who don't have a smart phone with a camera get on? And in many instances access to their banks is no easy task either since so many have closed their doors, especially in rural areas . That in itself means a big distance to travel to get to a bank, and in many cases public transport is not available. Try as I might to stay afloat of technology, I am feeling, the older I get that I am falling through the cracks and becoming invisible....and that is a very scary situation
 
This has NOTHING to do with safety and everything to do with control. We've all been feeling it for quite some time now - the banks are making it harder and harder to access OUR OWN money.

Vote with your feet and walk away from NAB. You won't regret it...
 
I often find 'rehashed' articles here.
Probably called "cut and paste" and used to fill up space ...
Notably because the "authors" couldn't think of anything new.
 
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So, what happens as you age, and your physical facial features gradually change, or you have an accident or illness [swelling, bruising, scars etc]. How does that work?
 
Well lets just hope it works better than the phones, my phone never recognises my photo,
 
I believe a lot still needs to be clarified before one can make a decision whether or not to use it.
 
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This major bank will soon roll out a new security feature—and customers will need to click only ONE button.

That button is called a BRAIN!!!
 
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Reactions: Dynomite and Macarj
Umm is this an old article. I say that because of thie statement.

"All major banks must implement at least one biometric check for new customers opening accounts online by the end of 2024, making this the biggest change to banking security in decades."

Last I looked it's 2025.

That’s my mistake, I should’ve clarified that part now that we’re in 2025. Thanks for spotting it.
 
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Reactions: Dynomite and PattiB
Obviously they would have to accept a large proportion onf facial feature not 100%. Hair colour changes and you could be unlucky enough to get a scar.
 
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Reactions: Dynomite and PattiB
I put facial recognition on my phone to open it plus it also has a 6 digit code.🌞
 
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It’s very unlikely to ever affect me, as I’m not likely to open another bank account. I assume that would be the situation for most of us, so no use worrying about it.
 
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Reactions: Dynomite and PattiB
I sometimes use hubby's password to keep it "alive" he knows that I do this, I guess that when this comes in, I won't be able to.
 
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Reactions: PattiB
I did also, but it won't recognise me.
Really! Maybe go into your bank if you can or phone a friend and see if they can help you find out why.🌞
 
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And it stinks that we cannot avoid using banks at all because if we could avoid them at all I'm damn sure that's what I'd be doing if I could (but my employer won't pay me in cash & Clink won't either when my turn comes for that!
We are already being controlled into many ways & nothing we can do about it!
 
AI is already working on face recognition. Do not have false hopes of security
 

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