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The Australian Competition and Consumer Commission (ACCC) has confirmed that the Australian Banking Association Ltd (ABA) and its 16 member banks will be allowed to participate in discussions to develop industry standards on scam prevention.
The commission confirmed interim authorisation was provided to the members of the association to help develop an industry standard to prevent, detect, and disrupt scams affecting individual and small-business customers.
The conditional authorisation provides the banks with statutory protection from court action for conduct that might otherwise raise concerns under the provisions of the Competition and Consumer Act 2010, for example, collusion.
However, the competition watchdog stressed that the authorisation includes strict measures to “manage the risk of the banks coordinating on anything beyond scam prevention and customer redress”.
ACCC deputy chair Catriona Lowe said the body had enacted the interim authorisation because the “proliferation of scams is causing significant detriment to consumers and businesses alike, and the banking sector has a key role in combating scams and recovering losses”.
“A coordinated response across government, law enforcement and the private sector is essential to effectively combat scams that are evolving rapidly with increasing sophistication,” Ms Lowe said.
She declared the interim allowance had several stipulations placed on it.
“We have placed reporting conditions on the ABA to ensure we are informed of the progress of their discussions, including consultation with stakeholders, and to aid us in determining our final decision on the application,” Ms Lowe elaborated.
“The ABA will be required to provide regular reports on any industry initiatives they propose such as circumstances where customers would be reimbursed or entitled to remedies.”
As part of the ACCC’s growing effort to stop scammers, the government launched the National Anti-Scam Centre (NASC), which is led by ACCC and ASIC, earlier this year.
The body aims to intercept scammers before they reach intended victims, remove investment scam websites from the internet, raise consumer awareness about the nature of scams and how to avoid them, and help victims access services where they’ve lost money or had their identity compromised.
At the launch of the NASC, Assistant Treasurer and Minister for Financial Services Stephen Jones said the initiative was “taking the fight” to scammers.
[Related: Banking committee to ‘prioritise’ Bank@Post compliance]
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