Scam Safe Accord: Shielding Australians from Scammers
It’s been almost 9 months since the announcement of the Scam Safe Accord. In late 2023, the Australian Banking Association partnered with government bodies to launch the initiative, which aimed to provide a unified, robust approach to protecting the country against the rising numbers of financial scams.
A report from the ACCC’s National Anti-Scam Centre showed that Australians made more than 601,000 scam reports in 2023 and lost AUD 2.74 billion to scams.
What is the Scam Safe Accord?
The Scam Safe Accord is a comprehensive framework designed to combat financial scams through a multi-faceted approach involving awareness, technology, and policy enhancements. Key stakeholders, including major banks, fintech companies, and regulatory authorities, have pledged to work together to develop and implement robust security measures, which consist of six key initiatives:
- Biometric checks to prevent misuse of bank accounts
- Warnings and payment delays to alert customers to potential scam payments
- A major expansion of intelligence-sharing across the sector
- Limiting payments to high-risk channels
- Implementing an anti-scams strategy
- A $100 (AUD) million investment in a new industry-wide ‘confirmation of payee’ (CoP) system
Updates from the big banks
Westpac
One of the significant updates shared by Westpac in March 2024 is the introduction of Westpac Verify, a new feature set to be released in September 2024. This tool will enhance security in the bank’s corporate payments channel, providing an additional layer of verification to prevent unauthorized transactions.
Chris Campbell, Westpac’s Head of Fraud and Risk, emphasized that while these measures are crucial, it is essential for everyone to remain vigilant. Scammers constantly adapt their tactics, and therefore, security measures must also evolve to stay ahead of these threats. Campbell highlighted that different parts of the Scam Safe Accord would come online at various times, with full implementation expected by the end of 2025.
ANZ Bank
Announced in April 2024, ANZ is introducing an AI-driven Scam Scoring model, enhancing its security measures to combat scams and financial crime. The model provides personalized warning messages and expanded customer support for reporting scams. The bank will also deploy advanced algorithms to detect mule accounts and provide tailored educational resources.
ANZ Head of Customer Protection, Shaq Johnson, said: “Cyber events, data breaches, scams, and fraud activity continue to be a challenge to the community in 2023; however, we’re seeing results from our response. ANZ continues to take action, introducing additional measures to protect our customers and the community from sophisticated criminal networks.”
CommBank
In line with it's whole-of-ecosystem approach, In June 2024, Commonwealth Bank of Australia (CBA) unveiled it has integrated into the new "anti-scam intelligence loop," co-designed by the Australian Financial Crimes Exchange and the National Anti-Scam Centre. This loop allows banks, telcos, ISPs, and social media platforms to share scam-related information rapidly, enabling quick action to block scam communications and remove fraudulent websites and ads.
James Roberts, General Manager Group Fraud at CBA, recently stated “We view this as a ‘whole-of-ecosystem’ problem, with the majority of scams originating outside the banking sector, often as fake websites, texts, and social media advertisements."
Conclusion
The Scam Safe Accord represents a significant step forward in the fight against financial scams in Australia. By combining the efforts of financial institutions, regulators, and the public, Australia is building a more resilient and secure financial system.
This is a significant shift in our industry. Through a unified approach to combating scams and fraud, education of consumers, and leveraging the latest technology, including biometrics, deepfake detection, and transaction monitoring, we are seeing a decrease and financial loss as a result of scams and fraud.
According to the ACCC's National Anti-Scam centre quarterly update for May 2024, we are seeing encouraging decreases in incidents and financial loss.
Source: ACCC National Anti-Scam centre quarterly update
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