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The new Fraud Indicator technology being promoted by CBA and Telstra reportedly “enables intelligence about unusual mobile service usage to be shared securely to help detect identity theft”.
“Keeping our customers’ money safe is a priority for CBA. We’ve reduced customer scam losses by more than 70 per cent over two years but more needs to be done, and we remain focused on continuing to help customers stay safe by improving early detection and prevention,” said James Roberts, general manager of group fraud at CBA.
“These measures range from sharing behavioural and device-based intelligence with other banks in real time, to collaborating across other industries – including with telcos like Telstra – to help makes Australia less attractive to scammers.”
Developed by Quantium Telstra, the program went live recently and is poised to improve the detection rate for fraudulently opened accounts by more than 25 per cent for joint CommBank and Telstra customers.
Sandy Cameron, CEO of Quantium Telstra, said: “Fraudsters show some distinctive behaviours and patterns when it comes to mobile phone usage. When this information is combined with an organisation’s own insights and analysis, Fraud Indicator becomes a powerful tool to prompt interventions, potentially disrupting fraud attempts earlier.
“As an example, a fraudster signing up for a new bank account provides a mobile number to receive passcodes and authenticate the account. By accessing insights on how this mobile service is used – which differs from normal behaviours – CommBank can better assess the risk that this is a bad actor and potentially stop fraudulent accounts from being opened.”
A collaborative effort across industry is needed to combat scams and fraud, Roberts said.
“It will take a cumulative and legislated effort across industries – including digital platforms and social media companies, telcos and banks – to combat scammers. We’re committed to continuing to innovate and work together with others to protect Australians,” Roberts said.
“The commercial impact of fraud and scams on Australian enterprises is alarming, and the full cost goes well beyond the money lost – including labour, legal and recovery costs. By detecting more fraud and reducing false positives, Fraud Indicator could have a significant positive impact on the cost of doing business in Australia and play a significant role in the fight against fraud and scams.”
Telstra’s executive general manager - financial services, Lynn Currie, added: “These days, many banking and financial services organisations ask for a mobile number when a customer sets up a new account with them. Bad actors have some unique usage behaviours, so insights on how this mobile service is used can give the organisation a better idea of how high the risk is that this is a fraudster.
“Based on this information, they may decide to seek additional checks to determine how risky they are, or they may have more confidence that this is a genuine customer and make the process even smoother,” she said.
