The Australian banking industry is implementing a series of reforms aimed at enhancing customer protection against scams, highlighted by a $100 million investment to develop a new Confirmation of Payee (CoP) system.
In addition to the CoP system, banks across the country are committing to setting limits on transfers to high-risk cryptocurrency platforms. They plan to introduce more warnings, delays, and friction in money transfers, especially to new accounts.
The new measures will also require banks to use at least one biometric check when opening new accounts. This initiative is spearheaded by the Australian Banking Association and the Customer Owned Banking Association, with backing from all financial institutions in the country, including commercial banks, building societies, credit unions, and mutual banks.
Westpac CEO and ABA Chair Peter King stated, “This will be one of the biggest technical uplifts for Australian banking in recent times and means Australians with bank accounts will be significantly more protected from scams. The action plan will help level the playing field and ensure customers are afforded the same protections no matter who they choose to bank with.”