Australian Payments Plus (AP+) and the Australian Banking Association (ABA) have finalized the design specifications for a new national Confirmation of Payee service aimed at enhancing protection against scams.
This service, which will be developed by banking co-operative Swift, will feature a central matching database that verifies name matches based on account information submitted by each payee Financial Institution (FI) in comparison to the account name provided by the payer.
Lynn Kraus, CEO of AP+, emphasizes that reaching an agreement on the design is a significant advancement for the industry in its efforts to combat scams and fraud. “We have engaged with over 50 community groups to gather a diverse range of opinions, ensuring broad-based community support for the solution, which will be crucial to its success,” Kraus stated.
Anna Bligh, CEO of the ABA, noted that Australian banks are investing $100 million in this new anti-scam technology. “Banks are committing resources to this service to ensure customers have an additional layer of protection against scammers,” Bligh said. “This initiative will help customers feel more confident that their money is being transferred to the correct person rather than a potential scammer.”
The implementation of the new service is expected to take place in phases, with the centralized capabilities, including account matching logic and standardized APIs, being progressively developed and tested throughout 2024. Financial institutions will begin integrating this service into their banking channels in early 2025.