Westpac has initiated a policy of automatically blocking suspicious online transactions from overseas retailers identified as high-risk for scams.
When a customer attempts to make an online card payment and a potential scam is detected, the transaction will be blocked automatically, and the customer will receive a notification via SMS. This action follows a trial conducted last year that focused on select online stores with questionable marketing practices, particularly targeting diet pill retailers. During the trial, over 11,000 potential scams were intercepted, benefiting 4,000 customers and saving more than $1.2 million.
Since January, Westpac has broadened this practice. If customers believe that a blocked payment is legitimate, they can reach out to Westpac’s specialized scam assistance team to request that the transaction proceeds. However, this has only occurred in over 99% of cases.
Westpac’s scam detection technology evaluates transaction patterns, merchant behaviors, and past customer reports to dynamically update high-risk merchant lists. The merchants that are blocked are exclusively based overseas and typically deal in products such as diet pills, nutrient supplements, online dating subscriptions, music services, or business support services.
Ben Young, head of fraud at Westpac, stated, “The technology adds another layer of security for our customers shopping online and intervenes when they are purchasing from a suspicious retailer. This new capability enhances our existing 24/7 fraud detection systems that focus on preventing transactions involving stolen or copied cards.”