Banks Team Up to Prevent Scams, Protect Customers

In a major effort to combat scammers and safeguard customers, Australia’s four largest banks have joined forces to share best practices in scam prevention, detection, and response.

Combating Scams: A Collaborative Effort

According to a recent report by the Australian Securities and Investments Commission (ASIC), the banks prevented or blocked an astonishing $32.6 million worth of scam transactions from occurring between April 2023 and September 2023.

• The report highlights the importance of awareness and education activities in preventing scams.
• However, it also notes that there is limited monitoring of the effectiveness of these initiatives in helping customers identify and avoid scams.

Testing Awareness Campaigns

One major bank has planned to test the impact of a scam awareness campaign by delivering bespoke videos to certain customers and tracking whether those who watched them were less likely to fall victim to scams in the future.

• This approach aims to evaluate the effectiveness of targeted communication methods in preventing scams.
• By monitoring customer behavior, the bank can identify which messages are most effective in reducing scam susceptibility.

Proactive Approach to Prevention

Another bank has taken a more proactive approach by conducting interviews with scam victims to understand what could have prevented their losses. The result?

• Increased awareness and education emerged as one of the highest response categories among victims.
• This insight will help banks develop targeted prevention strategies, enabling them to better protect customers from scams.

Monitoring Effectiveness

The report emphasizes the need for banks to monitor the effectiveness of their scam prevention activities, including:

• Campaign messages
• Customer awareness
• Number of scam cases

By doing so, banks can measure the impact of particular communication methods and identify those having the most success in preventing scams.

Protecting Brands from Misuse

In addition to these measures, the banks are working together to protect against misuse of their brands and brand assets. With sophisticated scams increasingly using bank branding to trick customers, it’s crucial for financial institutions to:

• Vigilantly monitor for fraudulent activity
• Take steps to prevent their brands from being misused by scammers

To achieve this, the banks are active in preventing customers from falling victim to attacks that misrepresent their brands and brand assets. For example:

• They ask customers to forward suspicious messages.
• They work with domain registrars and telecommunications providers to take down phishing websites and disable scammer contact numbers.

Conclusion

While there is still more work to be done to prevent scams, the banks’ collaborative efforts are a significant step in the right direction. By continuing to share best practices and stay vigilant against fraudulent activity, these financial institutions can help protect their customers from falling victim to scammers.