Australian bank Westpac is implementing an additional security measure for online payments in response to increasing customer losses due to scams.
Currently in testing, Westpac Verify will notify customers if there is a potential mismatch between the account name and the new BSB and account number when making payments through Australia’s New Payments Platform. This alert will also be activated when customers transfer money to an account with which Westpac has not transacted before.
In such cases, the payment will be held for four hours, during which customers will receive a text message prompting them to review the transfer details. They will have the option to either cancel the transaction or proceed as planned.
Chris de Bruin, Westpac’s CEO for consumer and business banking, stated, “Our latest customer scam data revealed customer losses reached a record high in December, doubling from the previous year.”
He elaborated, “The majority of scam-related transactions occur when customers are misled into transferring money to a scammer through online or mobile banking. They might believe they’re sending funds to a legitimate business or individual, but that isn’t the case.”
De Bruin added, “Westpac will now pause certain payments, allowing customers to verify recipient details before continuing with a transaction. This gives an added layer of protection against potential scams.”
Commonwealth Bank of Australia recently introduced a similar anti-scam feature.
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