National Australia Bank (NAB) is investigating the implementation of biometric tracking techniques, such as monitoring keystrokes and phone handling, as part of its strategy to reduce fraudulent payments.
At an ABA conference, NAB CEO Andrew Irvine shared the bank’s goal of being the “best alarm on the street.” He noted a recent, albeit rare, decline in losses attributed to scams and fraud, stating, “Most Australians have become more scam aware, and that’s a good thing.”
NAB has introduced alerts for customers to notify them when a payment appears unusual or raises potential scam concerns, encouraging them to pause and verify. These alerts specifically target various types of scams, including invoice, investment, romance, and goods and services scams, accessible through the NAB app and internet banking.
The bank reports that over $100 million in payments have been abandoned by customers in the 15 months since this initiative launched within its digital banking platform. Irvine characterized scams and fraud as a pervasive issue, expressing concern that criminals will continue to evolve, particularly with advancements in AI enhancing the sophistication of attacks.
To mitigate these risks, NAB is incorporating additional layers of security in its payment processes. For instance, if the system detects a payment being sent to a new recipient, it prompts that user with a confirmation question. The bank is also exploring biometric indicators like keystroke patterns and phone usage to identify deviations from a customer’s typical behavior, allowing the bank’s intelligence systems to respond accordingly.