Commonwealth Bank of Australia is collaborating with local telecommunications provider Telstra on a venture aimed at combating scams that could potentially save customers up to $20 million annually in authorized push payment fraud.
Currently in a proof-of-concept stage, the Scam Indicator will be piloted over the next few months, helping to protect CBA and Telstra customers from phone scams where criminals attempt to deceive individuals into transferring large sums of money.
Preliminary simulations indicate that the tool could significantly enhance the detection and prevention of scams, potentially reducing customer losses by $15-20 million. By utilizing a Telstra API, the tool is designed to identify high-risk scam scenarios in real time, enabling CBA to check if a customer is engaged in a phone call—an essential signal of a scam in progress. This capability allows CBA to reach out to affected customers, implement additional checks, delay, block, or interrupt transactions, and send notifications directly to the customer’s banking app.
According to Matt Comyn, CEO of Commonwealth Bank: “We have been working with Telstra to produce a machine-learning scams detection model. We acknowledge that there is more to do given the rising volume and fast-changing nature of scams.”
This initiative builds upon Telstra’s ‘Cleaner Pipes’ program, which employs machine learning to block unwanted emails, SMS, and phone calls using advanced spam and scam filters. Since its launch, the program has blocked nearly 230 million SMS messages and an average of 10 million scam or potentially unwanted calls each month.
Vicki Brady, CEO of Telstra, stated: “Australians are under constant threat from scammers, who are becoming increasingly sophisticated and persistent. Cybersecurity and tackling scams require a collaborative effort, with organizations working together to share insights and develop solutions that can better protect our customers.”
The pilot program is set to launch in the middle of this year, with additional banks expected to join the initiative later in 2023.
For more information on payment innovations, consider registering for NextGen Nordics, taking place on April 25, 2023.