The COVID-19 pandemic has forced many Australians to become familiar with the digital world. We here at the SDC know that there have been many benefits to this surge in digitisation, such as more secure banking, access to more products and services, shopping for groceries online, and more…

Sadly, though, with this newfound access to convenience and security comes a sinister side – scamming. Fraudulent activity is increasingly becoming a part of our everyday life, particularly for those over the age of sixty, who are more prone to scams than the general population, according to some reports.

Fraudulent activity is increasingly becoming a part of our everyday life, particularly for those over the age of sixty. Image source: Freepik.

What’s worse, banks in Australia still aren’t legally required to reimburse victims of scamming. But thankfully, British banks may soon have to change that.

Under new plans from the UK’s Payment Systems Regulator, British banks will have to provide customers with a refund if they fall victim to 'authorised push payment' scams. This type of scam is when someone gains access to your account and coerces you into making a payment to their account, often by masquerading as a legitimate business or person.

The move is also intended to incentivise banks and other payment providers to do more to tackle scam activity by making them partially liable for reimbursing losses. The reimbursement cost will be split 50-50 between the bank that sends and the bank that receives the payment.

Banks and other payment providers are encouraged to do more to tackle scam activity. Image source: Pexels.

So, should banks in Australia follow suit? You might think so, considering scammers are becoming increasingly sophisticated here, and losses are increasing day by day. In fact, the most recent review of the four major banks’ processes by the Australian Investments and Securities Commission (April 2021) revealed that those same institutions only managed to detect and stop 13 per cent of scam payments.

In addition, the review revealed that the banks in question had varied reimbursement policies and widely unjust compensation measures, with success rates ranging from 2 to 5 per cent. Not exactly encouraging, right?

As a result, the UK has accepted the need for more strict regulation than the market-based approach currently being implemented in Australia.

However, the Australian Banking Association – the organisation representing the banking sector – has contested the UK’s plans, claiming that mandating refunds for scam victims could encourage people to take less care of their own money if they know that any losses are guaranteed to be covered by their bank.

Still, you have to take into account the changing landscape and burden of responsibility placed on customers after the digitisation push by financial service providers. It’s much easier for scammers to access information and money now than ever before.

Additionally, with the elderly, people with disabilities, and culturally and linguistically diverse individuals making up such large portions of scam victim reports – could banks really claim full responsibility for scams if their procedures do not better suit nor protect these individuals?

​

That’s why here at the SDC, we believe banks should start improving and being more strict with their fraud prevention and reimbursement processes to save their customers from fraudulent losses.

Steps to Prevent Scamming

Preventing scamming is just as important as any reparation measures taken post-scam. After all, wouldn't you rather not be scammed in the first place? Let's take a look at some steps that can significantly lower your chances of falling victim to scamming tactics.

First and foremost, keep yourself educated on the latest scamming tactics. Scammers are constantly evolving their methods, making it crucial for you to stay one step ahead. You can do this by regularly checking our ScamWatch forum here or the Australian Competition and Consumer Commission's (ACCC) Scamwatch website, which is a treasure trove of information about the different types of scams, how they work, and practical advice on what you can do to protect yourself.

Being vigilant is another key to prevention. Always read your bank and credit card statements carefully to check for any unauthorised transactions. Regularly monitor your financial accounts for any unfamiliar activities. And remember, never, ever, share your bank details with someone you don't trust.

Next, ensure that you keep all of your applications and software up-to-date. New updates often include additional security features or fix known vulnerabilities that could be exploited by scammers.

Another great precaution is to implement unique, complex passwords for each of your online accounts, especially for banking and other finance-related services. To keep track of these passwords, consider using a reputable password manager. This does not only keep your passwords safe and encrypted, but will also help you create long, complex, and unique passwords that are difficult for scammers to crack.

Lastly, when in doubt, contact your bank. Banks are becoming increasingly aware of the increase in scamming activity and have departments dedicated to fraud prevention. They may be able to provide advice or take necessary action if you feel you might be being targeted.

Even with the best precautions, anyone can fall victim to a scam. But having the right knowledge and taking these preventative steps can significantly lower your risk of becoming a target. And remember – if it sounds too good to be true, it probably is! Protect yourself and let's make it tougher for these scammers out there!

If you or someone you know has been a victim of fraud or scamming, you should report it to ReportCyber, for support contact iDcare, and for advice on prevention consult Scamwatch. Remember, prevention is always the best cure!

 

[Wandiwa]

Title of the article: What if your bank had to reimburse you for being scammed?
A lot of people would be less cautious about scams, if they knew that some-one else was going to take the losses. If the bank is at fault fair enough, but people have to look after themselves.

 

[Lynjw]

The COVID-19 pandemic has forced many Australians to become familiar with the digital world. We here at the SDC know that there have been many benefits to this surge in digitisation, such as more secure banking, access to more products and services, shopping for groceries online, and more…

Sadly, though, with this newfound access to convenience and security comes a sinister side – scamming. Fraudulent activity is increasingly becoming a part of our everyday life, particularly for those over the age of sixty, who are more prone to scams than the general population, according to some reports.

View attachment 26211

Fraudulent activity is increasingly becoming a part of our everyday life, particularly for those over the age of sixty. Image source: Freepik.

What’s worse, banks in Australia still aren’t legally required to reimburse victims of scamming. But thankfully, British banks may soon have to change that.

Under new plans from the UK’s Payment Systems Regulator, British banks will have to provide customers with a refund if they fall victim to 'authorised push payment' scams. This type of scam is when someone gains access to your account and coerces you into making a payment to their account, often by masquerading as a legitimate business or person.

The move is also intended to incentivise banks and other payment providers to do more to tackle scam activity by making them partially liable for reimbursing losses. The reimbursement cost will be split 50-50 between the bank that sends and the bank that receives the payment.

View attachment 26212

Banks and other payment providers are encouraged to do more to tackle scam activity. Image source: Pexels.

So, should banks in Australia follow suit? You might think so, considering scammers are becoming increasingly sophisticated here, and losses are increasing day by day. In fact, the most recent review of the four major banks’ processes by the Australian Investments and Securities Commission (April 2021) revealed that those same institutions only managed to detect and stop 13 per cent of scam payments.

In addition, the review revealed that the banks in question had varied reimbursement policies and widely unjust compensation measures, with success rates ranging from 2 to 5 per cent. Not exactly encouraging, right?

As a result, the UK has accepted the need for more strict regulation than the market-based approach currently being implemented in Australia.

However, the Australian Banking Association – the organisation representing the banking sector – has contested the UK’s plans, claiming that mandating refunds for scam victims could encourage people to take less care of their own money if they know that any losses are guaranteed to be covered by their bank.

Still, you have to take into account the changing landscape and burden of responsibility placed on customers after the digitisation push by financial service providers. It’s much easier for scammers to access information and money now than ever before.

Additionally, with the elderly, people with disabilities, and culturally and linguistically diverse individuals making up such large portions of scam victim reports – could banks really claim full responsibility for scams if their procedures do not better suit nor protect these individuals?

​

That’s why here at the SDC, we believe banks should start improving and being more strict with their fraud prevention and reimbursement processes to save their customers from fraudulent losses.

Steps to Prevent Scamming

Preventing scamming is just as important as any reparation measures taken post-scam. After all, wouldn't you rather not be scammed in the first place? Let's take a look at some steps that can significantly lower your chances of falling victim to scamming tactics.

First and foremost, keep yourself educated on the latest scamming tactics. Scammers are constantly evolving their methods, making it crucial for you to stay one step ahead. You can do this by regularly checking our ScamWatch forum here or the Australian Competition and Consumer Commission's (ACCC) Scamwatch website, which is a treasure trove of information about the different types of scams, how they work, and practical advice on what you can do to protect yourself.

Being vigilant is another key to prevention. Always read your bank and credit card statements carefully to check for any unauthorised transactions. Regularly monitor your financial accounts for any unfamiliar activities. And remember, never, ever, share your bank details with someone you don't trust.

Next, ensure that you keep all of your applications and software up-to-date. New updates often include additional security features or fix known vulnerabilities that could be exploited by scammers.

Another great precaution is to implement unique, complex passwords for each of your online accounts, especially for banking and other finance-related services. To keep track of these passwords, consider using a reputable password manager. This does not only keep your passwords safe and encrypted, but will also help you create long, complex, and unique passwords that are difficult for scammers to crack.

Lastly, when in doubt, contact your bank. Banks are becoming increasingly aware of the increase in scamming activity and have departments dedicated to fraud prevention. They may be able to provide advice or take necessary action if you feel you might be being targeted.

Even with the best precautions, anyone can fall victim to a scam. But having the right knowledge and taking these preventative steps can significantly lower your risk of becoming a target. And remember – if it sounds too good to be true, it probably is! Protect yourself and let's make it tougher for these scammers out there!

If you or someone you know has been a victim of fraud or scamming, you should report it to ReportCyber, for support contact iDcare, and for advice on prevention consult Scamwatch. Remember, prevention is always the best cure!

Yes banks and PayPal etc should reimburse. They need to up their security to stop it happening. Complex passwords are well and good if u can remember them.

 

[kevinwoodtufftyke52@gmail]

The COVID-19 pandemic has forced many Australians to become familiar with the digital world. We here at the SDC know that there have been many benefits to this surge in digitisation, such as more secure banking, access to more products and services, shopping for groceries online, and more…

Sadly, though, with this newfound access to convenience and security comes a sinister side – scamming. Fraudulent activity is increasingly becoming a part of our everyday life, particularly for those over the age of sixty, who are more prone to scams than the general population, according to some reports.

View attachment 26211

Fraudulent activity is increasingly becoming a part of our everyday life, particularly for those over the age of sixty. Image source: Freepik.

What’s worse, banks in Australia still aren’t legally required to reimburse victims of scamming. But thankfully, British banks may soon have to change that.

Under new plans from the UK’s Payment Systems Regulator, British banks will have to provide customers with a refund if they fall victim to 'authorised push payment' scams. This type of scam is when someone gains access to your account and coerces you into making a payment to their account, often by masquerading as a legitimate business or person.

The move is also intended to incentivise banks and other payment providers to do more to tackle scam activity by making them partially liable for reimbursing losses. The reimbursement cost will be split 50-50 between the bank that sends and the bank that receives the payment.

View attachment 26212

Banks and other payment providers are encouraged to do more to tackle scam activity. Image source: Pexels.

So, should banks in Australia follow suit? You might think so, considering scammers are becoming increasingly sophisticated here, and losses are increasing day by day. In fact, the most recent review of the four major banks’ processes by the Australian Investments and Securities Commission (April 2021) revealed that those same institutions only managed to detect and stop 13 per cent of scam payments.

In addition, the review revealed that the banks in question had varied reimbursement policies and widely unjust compensation measures, with success rates ranging from 2 to 5 per cent. Not exactly encouraging, right?

As a result, the UK has accepted the need for more strict regulation than the market-based approach currently being implemented in Australia.

However, the Australian Banking Association – the organisation representing the banking sector – has contested the UK’s plans, claiming that mandating refunds for scam victims could encourage people to take less care of their own money if they know that any losses are guaranteed to be covered by their bank.

Still, you have to take into account the changing landscape and burden of responsibility placed on customers after the digitisation push by financial service providers. It’s much easier for scammers to access information and money now than ever before.

Additionally, with the elderly, people with disabilities, and culturally and linguistically diverse individuals making up such large portions of scam victim reports – could banks really claim full responsibility for scams if their procedures do not better suit nor protect these individuals?

​

That’s why here at the SDC, we believe banks should start improving and being more strict with their fraud prevention and reimbursement processes to save their customers from fraudulent losses.

Steps to Prevent Scamming

Preventing scamming is just as important as any reparation measures taken post-scam. After all, wouldn't you rather not be scammed in the first place? Let's take a look at some steps that can significantly lower your chances of falling victim to scamming tactics.

First and foremost, keep yourself educated on the latest scamming tactics. Scammers are constantly evolving their methods, making it crucial for you to stay one step ahead. You can do this by regularly checking our ScamWatch forum here or the Australian Competition and Consumer Commission's (ACCC) Scamwatch website, which is a treasure trove of information about the different types of scams, how they work, and practical advice on what you can do to protect yourself.

Being vigilant is another key to prevention. Always read your bank and credit card statements carefully to check for any unauthorised transactions. Regularly monitor your financial accounts for any unfamiliar activities. And remember, never, ever, share your bank details with someone you don't trust.

Next, ensure that you keep all of your applications and software up-to-date. New updates often include additional security features or fix known vulnerabilities that could be exploited by scammers.

Another great precaution is to implement unique, complex passwords for each of your online accounts, especially for banking and other finance-related services. To keep track of these passwords, consider using a reputable password manager. This does not only keep your passwords safe and encrypted, but will also help you create long, complex, and unique passwords that are difficult for scammers to crack.

Lastly, when in doubt, contact your bank. Banks are becoming increasingly aware of the increase in scamming activity and have departments dedicated to fraud prevention. They may be able to provide advice or take necessary action if you feel you might be being targeted.

Even with the best precautions, anyone can fall victim to a scam. But having the right knowledge and taking these preventative steps can significantly lower your risk of becoming a target. And remember – if it sounds too good to be true, it probably is! Protect yourself and let's make it tougher for these scammers out there!

If you or someone you know has been a victim of fraud or scamming, you should report it to ReportCyber, for support contact iDcare, and for advice on prevention consult Scamwatch. Remember, prevention is always the best cure!

Australian banks should be made to reimburse customers that have been scammed. Those same banks, through our Federal government and using our money were guaranteed financial backup during the Co-vid scare.

 

[terri]

Banks should definitely be responsible for allowing scammers to get their hands on your money. But even better they should be working harder to stop them before the money is taken. If scammers are still making money, from banks, then they will not stop. This is such a big issue the banks need to try harder.

 

[Trudi]

Something to consider before we all scream for banks to be held responsible for our losses to scammers, this will no doubt result in increased bank fees and charges. Also, will the banks force people that have been scammed more than once, to close their bank accounts?

It sounds so easy to make someone else responsible for our own shortcomings, but everything has a price.

 

[Catherines]

Take responsibility for your own actions and for not checking or falling prey to a scammer! When are we going to stop blaming everyone and everything else for our own stupidity?

 

[mylittletibbies]

Banks did not bring in all these new ways of doing our banking for our benefit.
It was for their own bottom line and the pockets of their share holders, allowing them to sack thousands of employees and close endless branches
A consequence of this is that we have to spend our time worrying about and looking out for scams.
Let the.banks do the worrying and reimbursing, they make money off our money every day, much more than we do, it is their business and their duty of care once we have placed our money in their care.
This is how they want to run their business, not everybody is well educated or savvy to these things and even the smartest people have been tricked.

 

[Trudi]

Banks did not bring in all these new ways of doing our banking for our benefit.
It was for their own bottom line and the pockets of their share holders, allowing them to sack thousands of employees and close endless branches
A consequence of this is that we have to spend our time worrying about and looking out for scams.
Let the.banks do the worrying and reimbursing, they make money off our money every day, much more than we do, it is their business and their duty of care once we have placed our money in their care.
This is how they want to run their business, not everybody is well educated or savvy to these things and even the smartest people have been tricked.

Speak for yourself! I remember that I couldn't wait for my bank to bring in electronic banking in the early years of this century. Prior to paying my bills online, I used to do telephone banking which I found very cumbersome.

As for banks compensating people for falling for scammers, this will only increase the costs for their customers as nothing is free! Surely, as adults, it is our responsibility to check and double check before we pay over money to someone else. I certainly don't subscribe to the attitude "oh well, if I'm scammed, the bank will compensate me".