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· Posted on
February 21, 2024

It's scam o-clock.. and the Australian banks aren't snoozing anymore

A group of the major banks, credit unions and mutual banks have committed to the The Scam Safe Accord.

What's the key learning?

  • The Scam Safe Accord uplifts a new $100 million confirmation system that forces a sender to confirm that they're transferring money to the right person.
  • With more and more people falling victim to scams, the banks are co-operating for this new and more offensive scam strategy.
  • According to the ACCC, investment scams and payment redirection scams were two of the most common scams.

👉 Background: Scams cost Australians $3.1 billion in 2022, which is an 80% increase on the year before. So Australian banks are looking at new ways to combat scammers.    

👉 What happened: A group of the major banks, credit unions and mutual banks have committed to the The Scam Safe Accord. They have built a new $100 million confirmation system that forces a sender to confirm that they're transferring money to the right person. That means more warnings and pop ups in people's banking apps.

👉 What else: With more and more people falling victim to scams, the banks are co-operating for this new and more offensive scam strategy.

What's the key learning?

💡It's not often that banks unite together for a cause. So you know that when they do, it's serious business.

💡According to the ACCC, investment scams and payment redirection scams were two of the most common scams. And, the frequency and sophistication of these scams continues to rise.

💡So, the banks are hoping that this new "Accord" will help reduce the number of scams and help those with bad eye sight who just skip an account number.

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