👉 Background: 31,000 customers from the Big 4 banks lost more than $558 million from scams in the FY22. And only 2-5% of these scammed customers were able to get any form of reimbursement. Ouchhh.

👉 What happened: Now, The Australian Banking Association announced a new digital platform called Fraud Reporting Exchange, or FRX. The exchange will:

• Streamline communication between banks and quickly allow them to let each other know if funds have been sent to a scammer.
• Slow down the payment of funds to newer accounts that may have been created by criminals.

👉 What else: The Banking Association has already got 17 banks on board or in the process of joining the new platform. But while this may help reduce people getting caught in a scam, the onus is still on the customer.

What's the key learning?

💡In Australia, the discussion around fraud liability has been a very contentious issue.

💡There are two sides to every story:

• The banks believe the customer is responsible because customers need to protect their own account.
• Customers believe that banks, which make billions in profit, should compensate for lost funds.

💡 The ACCC reckon that the onus should fall on the banks... And by putting the onus on the banks, it means they have a financial interest to make sure their systems are up to scratch.

💡We wouldn't be the first country to put the onus on the banks. In the UK, a voluntary code means banks reimburse customers for many losses. So it'll be interesting to see whether the souped-up FRX can be our shield against fraud.

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