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Westpac has implemented a variety of measures to keep losses to a minimum for customers. The Verify feature is one such addition. Launched in June, it “alerts customers to a potential account name mismatch when they’re adding a new payee using a BSB and account number.”
According to Westpac’s head of fraud and financial crime Ben Young, this feature is avoiding around 200 errors per day and helping reduce scam losses.
Meanwhile, the SaferPay feature is also being used to reduce the impact of scams. According to Young, the system “asks the customer a series of questions if they are making a payment which the bank’s AI algorithm identifies as high-risk.”
The latest estimate claimed that over $1 million in scam losses have been averted. Consumers should be wary of potential scams. There are a variety of ways financial scammers catch people lacking.
“One strategy is for the scammer to cold-call a target saying that they are from a bank’s security team and have discovered that the target’s bank details have been compromised. The aim is to persuade the individual to divulge their private details in order to restore security. Unfortunately, doing so often has the opposite effect,” said Young.
“The use of newly onboarded domestic business bank accounts for scams is also on the rise. The strategy involves the registration of a fake business with ASIC. And at a time when many customers are getting their tax returns ready, it pays to be wary of scammers impersonating the ATO. Even if it’s a call saying you are due a tax refund, that can be a red flag for a bad actor looking to fraudulently obtain your bank details. It’s wise to verify any contact with the ATO directly with the office over the phone.”
Scams are a major issue for Aussies. In fact, the ACCC reported in April last year that 2022 saw a loss of $3.1 billion.
Bank impersonation scams are common, with the ACCC warning consumers to be wary of phone calls and texts impersonating their bank.
In 2022 there were 14,603 reports of bank impersonation scams culminating in a loss of $20 million. Total losses to phone and text scams increased “significantly” with over $169 million lost.
“We are incredibly concerned about bank impersonation scams because they can be so convincing, they are very hard to detect,” said ACCC deputy chair Catriona Lowe.
“What’s equally worrying about this particular scam, is that it is emptying every last cent out of victims’ savings accounts, with losses averaging $22,000 and more than 90 reports of losses between $40,000 and $800,000. This causes both financial and emotional devastation.”
Scamwatch has been working to mitigate losses from scams, publishing a three-step guideline to assist:
- Stop: Don’t give money or personal information to anyone if unsure. Scammers will offer to help you or ask you to verify who you are. They will pretend to be from organisations you know and trust like Services Australia, police, a bank, government, or a fraud service.
- Think: Ask yourself could the message or call be fake? Never click a link in a message. Only contact businesses or government using contact information from their official website or through their secure apps. If you’re not sure, say no, hang up, or delete.
- Protect: Act quickly if something feels wrong. Contact your bank if you notice some unusual activity or if a scammer gets your money or information. Seek help from IDCARE and report to ReportCyber and Scamwatch.
[Related: Banks show over 30% decrease in scam losses]
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