Australian Banks Join Forces to Launch Scam-Safe Accord

In a significant move to combat scams and protect customers, Australia’s banking industry has launched the Scam-Safe Accord, a comprehensive set of anti-scam measures aimed at safeguarding every Australian.

Collaboration and Investment

The accord is the result of collaboration between community-owned banks, building societies, credit unions, and commercial banks, with an investment of $100 million in a new confirmation of payee system. This system will help prevent scams by verifying the identity of recipients before making payments.

Measures to Protect Customers

The Scam-Safe Accord outlines several measures that each bank will take to protect customers and small businesses from scams:

Introducing new and higher protections into their systems
Providing more warnings and delays when paying someone new or increasing payment limits
Enhancing technology and controls to prevent misuse of accounts through identity fraud

Banks have also committed to a major expansion of intelligence sharing across the sector, with all members joining the Australian Financial Crimes Exchange by mid-2024. This will enable critical information about scam transactions to be shared at speed between banks, improving the chances of preventing scams and recovering stolen funds.

Principles of Disrupt, Detect, and Respond

The accord is based on the principles of disrupt, detect, and respond, with a focus on:

Disrupting scam networks
Detecting suspicious activity
Responding quickly to fraudulent transactions

Reaction from Authorities and Industry Leaders

The accord has been welcomed by authorities, who have praised the banking industry’s commitment to fighting scams. “Preventing scammers from taking the hard-earned money of everyday Australians is a shared responsibility,” said Mike Lawrence, CEO of the Customer Owned Banking Association.

Industry leaders are also enthusiastic about the accord, with Anna Bligh, CEO of the Australian Banking Association, stating: “The Scam-Safe Accord is a significant step forward in our efforts to combat scams and protect customers. We urge other sectors to join us in this effort.”

Implementation Timeline

The Scam-Safe Accord comes into effect immediately, with design and build of the new confirmation of payee system set to begin straight away. The system is expected to be rolled out across all Australian banks over 2024 and 2025.

Recent data from banks shows that $600 million in stolen funds has been returned to customers over the last year. To continue this effort, authorities are urging government, banks, telcos, social media, and crypto platforms to work together as part of an ecosystem to stay one step ahead of sophisticated criminal gangs.

Long-Term Benefits

The Scam-Safe Accord is a major undertaking for the banking industry, with 15.4 billion transactions worth $2.5 trillion occurring every year across the sector. However, industry leaders believe that the accord will pay dividends in the long run, helping to protect customers and build trust in the financial system.

“As we implement the Scam-Safe Accord, we are sending a clear message to scammers: we will not tolerate fraudulent activity on our watch,” said Bligh. “We are committed to protecting every Australian’s hard-earned money, and we will do everything in our power to make that happen.”