Australian banks are taking action against increasing scams and fraud by implementing a new payment confirmation system, upgrading technology, and tightening controls.
The banks have come together under the “Scam-Safe Accord” to provide greater protection for customers against scams. The accord includes the introduction of a “confirmation of payee” system and enhanced security controls.
The Australian Banking Association (ABA) and Community Owned Banking Association (COBA) have stated that the industry will invest $100 million in the new confirmation of payee system, which aims to reduce scams by enabling people to verify the recipient before making payments.
The implementation of the confirmation of payee system will be similar to the current PayID service, allowing payers to confirm the authenticity of the payee account before authorizing payments.
The Australian Payments Plus (AP+) has confirmed that the confirmation of payee system will help reduce certain types of scams and expects it to be fully operational by early 2025.
Under the Scam-Safe Accord, banks have also committed to introducing biometric checks, warnings, and payment delays to prevent fraud and scams. They will also participate in intelligence sharing and implement an Anti-Scams Strategy.
The Scam-Safe Accord brings together all banks in Australia under a common goal to protect customers from scams. ABA CEO Anna Bligh and COBA CEO Mike Lawrence have both expressed their commitment to fighting scams and protecting customers.
Following the announcement of the accord, Westpac, NAB, ANZ, Commonwealth Bank of Australia, and Bendigo Bank have all expressed their support and outlined their individual efforts in combatting scams and fraud.