The bank is taking action to safeguard customers against fraud
In a bid to combat the rising tide of investment scam losses, Bendigo Bank has implemented a series of fraud mitigation and prevention measures, including doubling the size of its fraud prevention and response team. These efforts have resulted in the bank successfully blocking an estimated $38.6 million in fraudulent transactions during the financial year 2023, underscoring its commitment to safeguarding customers from scams and fraud.
Jason Gordon (pictured above), head of fraud at Bendigo Bank, emphasised the pressing challenge that investment scams pose to both the industry and its customers.
“Data from the ACCC shows that investment scams are on the rise,” Gordon said. “They are also the costliest, representing around half the value of all the money lost by Australians in scams. Investment scams can be very sophisticated, which is why we need our customers to stop, think and protect.”
To help customers protect themselves, Bendigo Bank advises a simple three-step approach:
- Stop: Refrain from providing money or personal information if uncertain about the legitimacy of the request
- Think: Scrutinise messages and calls carefully to identify potential fakes
- Protect: Take swift action if anything seems suspicious
Investment scams have become adept at targeting individuals and businesses, often utilising persuasive marketing techniques and leveraging new technologies, Bendigo Bank said. These scams entice victims with promises of attractive returns and minimal risks, sometimes resorting to high-pressure tactics or impersonating trusted individuals, public figures, or reputable brands. Social media platforms have emerged as popular hunting grounds for scammers seeking vulnerable targets.
“Investment scams may be hard to spot,” Gordon said. “It could be an offer to purchase cryptocurrency, participate in a business venture, a superannuation scheme, a managed fund or the sale, or purchase of shares or property. A scam might look like a genuine ad or might come from someone you’ve met online – even someone you know or trust. But one thing they have in common is willing ‘investors’ to take the bait. Sadly, the victims who volunteer access to their accounts and transfer money to the criminals rarely see their funds returned.”
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When determining the legitimacy of an investment opportunity, Gordon stressed the importance of conducting thorough checks, including seeking independent legal and financial advice. He further cautioned that some investment scams may provide initial monetary returns to lure victims into depositing additional funds, which are never returned.
Cryptocurrency has emerged as a popular tool for investment scams, with data from the Australian Financial Crimes Exchange revealing that 47% of scam funds were directed to accounts associated with cryptocurrency exchanges in the final 30 days of the 2023 financial year. Money lost to crypto scams often becomes untraceable and difficult to recover. To address this issue, Bendigo Bank has implemented measures to block payments to high-risk cryptocurrency exchanges.
The bank has also partnered with industry leaders in fraud protection and joined the Fraud Reporting Exchange, an independent not-for-profit organisation established by banks. This collaboration enables Bendigo Bank to share data and collaborate with over a dozen other financial institutions via a centralised reporting platform, facilitating the swift identification, prevention, and recovery of funds when customers fall victim to scams.
These measures complement a range of other strategies employed by Bendigo Bank to combat cyber and financial crimes, including multi-factor authentication, the removal of all links in SMS messages from the bank, a dedicated security team constantly monitoring for suspicious activity, and the detection of unusual account behaviour.
Gordon urged customers who believe they have fallen victim to an investment scam to visit www.bendigobank.com.au/security immediately to report the incident and seek support.
“Cyber fraud is a complex, growing, and ongoing challenge,” he said. “Reducing instances of cyber fraud will require considerable effort and cooperation from government, regulators, industry, and consumers. We need everyone to work together to put a stop to this organised criminal activity.”
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