The bank will share the technology across the industry
In an Australia banking first, Westpac said it will integrate its sophisticated fraud detection systems with its digital payment platforms to help combat scams.
The new digital payment security feature will enable Westpac customers to identify potential scams through real-time payment prompts, which will be activated once the bank detects a higher scam risk in the customer’s online or mobile banking.
Customers will be asked several questions to help better assess the scam risk, and if the responses indicate that the payment is highly likely a scam, Westpac will not process the payment.
In a media release, Westpac Group CEO Peter King (pictured above) said the prompts will “inject important friction in the payments process,” helping alert customers “in the moment.”
“Prompting customers in real-time with a series of questions will allow us to intervene on payments that we detect are particularly higher risk,” King said. “This is about helping customers spot potential red flags before any funds have actually been sent.
“The questions will be dynamic and tailored based on the circumstances of each payment to ensure an effective assessment of the scam risk. We’ve seen examples of this implemented in banks overseas with really successful results.
“This will add less than a minute to the payment process, but it could save a customer much more than that if they are being targeted by scammers.”
The big bank said it will also upgrade its existing Westpac Verify feature, which warns customers of a potential account name mismatch for payments to new BSB and account numbers, or money being moved to an account Westpac has never transacted with before.
Customers entering a new payee into their online or banking for the first time will be shown a scam risk rating, they can assess if they want to proceed with a payment.
“The enhanced Westpac Verify capability adds another layer of security by alerting customers before a payment is made,” King said.
“This includes instances where the entered account name doesn’t match that of the receiving account, a common tactic employed by scammers who make you believe you’re sending money to a legitimate business, individual, or bank account they’ve said has been set up in your name.”
Westpac said the new features will be tested and developed over the coming months and that the bank was prepared to share the technology across the industry to help protect more customers.
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