Westpac has enhanced its efforts to combat scammers by launching real-time Confirmation of Payee security features for both consumer and small business customers.
The new Westpac Verify function now features an up-front risk indicator that warns customers about potential account name mismatches when adding a new payee using a BSB and account number. Additionally, it alerts customers if Westpac has not previously processed a payment to the specified account.
Ben Young, Westpac’s head of fraud prevention, stated that the new Westpac Verify feature has the potential to significantly reduce scams and save customers millions. “Our latest customer scam data indicates a decrease in losses, but we recognize that scammers continue to have a detrimental impact on people’s lives. Westpac Verify will assist individuals and small businesses in identifying potential scams prior to making payments, helping them avoid substantial financial losses,” he said. The added capability aims to eliminate scams like investment fraud and fake invoices, which often prey on victims who are unaware they are sending money to scammers instead of legitimate recipients.
In a bid to further assist businesses, Westpac is also expanding its SaferPay capability to small business customers. This feature prompts customers with a series of questions upon detecting potential scam risks for new payments. If the responses suggest a risk of scamming, Westpac will block the payment.
Since its introduction for consumer payments in March, Westpac claims SaferPay has helped prevent approximately $1 million in potential scam payments. To enhance security further, customers will now be required to provide a description for payments to other bank accounts made via the mobile app, which will help in identifying and blocking potential scams.
“The more details we gather about a payment, the better our fraud detection systems can distinguish likely scams amidst millions of legitimate transactions, thereby protecting customers’ funds,” Young added.
In a related initiative, Commonwealth Bank of Australia (CBA) has emerged as the first Australian bank to join a new anti-scam intelligence network. Co-designed by the Australian Financial Crimes Exchange (AFCX) and the National Anti-Scam Centre (NASC), this intelligence loop facilitates the sharing of scam-related information among banks, telecommunications providers, internet service providers, and social media organizations. The goal is to block phone numbers and URLs used by scammers and eliminate fake websites, social media advertisements, and posts.
The information-sharing process among participants will be rolled out in phases, initially focusing on reducing SMS phishing scams. Since its integration, CBA has contributed over 1,200 entries to the loop, comprising scam phone numbers and dubious URLs.
James Roberts, CBA’s general manager of group fraud, commented: “We see this as a ‘whole-of-ecosystem’ issue since most scams originate outside the banking sector, often manifesting as fake websites, texts, and social media advertisements.”