Australian banks and tech companies have introduced advanced tools and cross-sector collaborations to reduce financial scams by 13%.
The Australian Competition and Consumer Commission (ACCC) received reports of over 601,000 financial scams in 2023, an 18.5% increase from 2022. This rise in fraudulent schemes has driven banks to develop innovative anti-scam measures to protect clients from organised criminals attempting to steal money through scams.
"Scammers are financial criminals who use sophisticated technology and psychology to rob Australians of their money and personal information," said ACCC deputy chair Catriona Lowe.
Banks Launch Anti-Scam Measures to Protect Clients
In response to the escalating threat, banks and key players in the financial and technology sectors have launched coordinated efforts to combat scams.
Scams often reach consumers via multiple channels, including social media, search engine ads, and phone calls. Consequently, a collaborative approach across various sectors is essential to effectively counter this threat.
"We're all part of the ecosystem, so pressure needs to be applied across the ecosystem – so there is less money that needs to be sent to scammers, less to chase, and Australians are safer," said James Roberts, CommBank’s general manager of group fraud.
CommBank's New Technologies: CallerCheck and NameCheck
CommBank has reinforced its policies to prevent payments to scam cryptocurrency accounts and initiated customer education programmes. In addition, it has introduced technologies such as the “CallerCheck” in-app caller verification and the “NameCheck” security tool.
CommBank has also partnered with Quantium and Telstra to develop the AI-powered “Scam Indicator” tool, which detects high-risk phone scams. This tool aims to stop criminals from deceiving customers into transferring money while on a call.
Furthermore, Optus' “Call Stop” technology has already blocked over 470,000 bank impersonation scams, thanks to the sharing of SMS scam data from CommBank. CommBank is also collaborating with Vodafone by exchanging SMS scam intelligence in near real-time.
These efforts are part of a broader initiative, including a new partnership with Macquarie University and APATE.AI, which uses conversational AI bots to gather scam intelligence and tackle phone scams.
Decrease in Financial Losses
The cumulative effect of these collaborations has shown positive results. In 2023, financial losses from scams in Australia decreased by 13%. The ACCC reported that losses fell to$2.7 billion, marking a significant step forward in the country’s efforts to combat scams.
Despite this progress, Roberts said that much more needs to be done to address the threat and that bank initiatives alone are not enough.
"By bringing to the table some of the brightest minds – across telcos, other banks, social media platforms, academics and technologists – we can generate more of these cutting-edge solutions to this very nasty societal problem," Roberts said.
More Organisations Join the Fight Against Scams
In an effort to accelerate scam detection and prevention, the Australian Financial Crime Exchange (AFCX) has established the "Anti-Scam Intelligence Loop," which facilitates real-time intelligence sharing among ecosystem players.
Meta is among the first social media companies to join the loop, and CommBank was the first to fully integrate into the system, sharing over 1,500 suspicious SMS links and social media profiles.
"As more organisations do the same, especially telcos and other social platforms, intelligence sharing via the intel loop will increase and cause real damage to the profit model of scammers," Roberts said.
How can technology companies further contribute to combating financial scams? Share your ideas in the comments below.
