Financial Crimes in Australia: Key Trends for 2023

Australian businesses are facing an increasingly complex and evolving financial crime landscape, with new threats emerging and existing ones adapting to stay ahead of detection. In this article, we will examine the major trends shaping the financial crime landscape in Australia and provide insights on how compliance teams can mitigate these risks.

Ransomware Activities Diversifying

Ransomware Attacks: A Growing Concern

Ransomware attacks have become a major concern for businesses worldwide, and Australia is no exception. The trend towards diversification of ransomware activities means that threat actors are using a wide range of strategies to target enterprises, from low-skill attacks to sophisticated exploits of zero-day vulnerabilities.

Mitigating Ransomware Risks

To stay ahead of these threats, financial crime compliance teams must be prepared to respond quickly and effectively in the event of a ransomware attack. This includes:

Having an incident response plan in place
Regularly backing up critical data
Staying up-to-date with the latest security patches
Providing employee training on cybersecurity best practices

Financial Fraud and Scams Continuing to Evolve

The Rise of Investment Scams

Scams continue to be a major problem in Australia, with Australians losing over $2 billion to scams in 2021. Investment scams remain the most common type of scam, accounting for losses of over $242 million in the first half of 2022.

The rise of cryptocurrencies has also led to an increase in cryptocurrency-related investment scams. These scams often target unsuspecting investors with promises of high returns and low risk.

Mitigating Financial Fraud Risks

To mitigate financial fraud risks, compliance teams must be aware of the evolving tactics and techniques used by criminals. This includes:

Reporting suspicious transactions
Educating employees on risk policies
Analyzing payments for potential financial crime activities
Performing due diligence on new customers

What Financial Crime Compliance Teams Should Know

Prioritizing Key Areas in 2023

In 2023, businesses operating in Australia will need to prioritize several key areas:

Instant payments require instant monitoring and analysis
Focus on crypto crime prevention and regulatory scrutiny will surge
SWIFT migration to ISO20022 standard will drive improved screening
Adoption of data and AI solutions for financial crime compliance will grow
Financial crime compliance will extend beyond the financial services sector

How Contingent Teams Can Help Compliance Teams

Providing Valuable Support

Contingent teams can provide valuable support to financial crime compliance teams, helping to alleviate regulatory pressures and address new threats. Momenta Group, with over 30 years of experience in the financial services industry, offers scalable resource solutions to complement existing capabilities.

Conclusion

By understanding these key trends and taking proactive steps to mitigate risks, Australian businesses can better protect themselves against financial crimes and maintain a strong reputation for integrity and transparency. By prioritizing compliance and staying ahead of evolving threats, businesses can ensure a safer and more secure future.