Collaborative Efforts: Banks Join Forces to Combat Scams

The Australian Competition and Consumer Commission (ACCC) has announced that the Australian Banking Association (ABA) and its member banks will be able to collaborate and enter into discussions to work on developing an industry standard to prevent, detect and disrupt scams.

This is an important step to enhance consumer protection and guard against the ever-increasing risk of fraud facing the industry. Instances of customers falling victim to scams are on the rise worldwide. ACCC's Targeting Scams Report issued earlier this year highlighted that Australian's reported A$3.1 billion (USD2 billion) of losses in 2022, an 80% increase from 2021. Here in Singapore, the numbers are also increasing with victims reporting losses of S$660.7 million (USD491.4 million) in 2022, up from S$632 million (USD470 million) from the year before.

The ramifications of these scams extend far beyond financial losses, encompassing mental and physical well-being as well as interpersonal relationships. Moreover, it is not only the elderly or vulnerable individuals who are affected; young adults are increasingly falling prey to these fraudulent schemes.

As highlighted in the latest ACCC Targeting Scams Report, it is becoming more challenging to identify scams due to technological advancements that allow scammers to imitate the phone numbers, email addresses, and websites of legitimate businesses. Additionally, scammers can now make SMS messages appear within the same conversation thread as authentic messages.

In 2022, Singapore implemented various measures to enhance customer protection against scams, such as the removal of clickable links in emails and SMS messages. However, with the continuous advancement of technology, it remains crucial to proactively prevent, detect, and disrupt the evolving modes and methods employed by scammers.

Promoting cooperation among banks to facilitate a synchronised response and establish a standardised framework for sharing information, typologies and best practices is a positive move. The goal is to create a resilient industry standard that can be extended to encompass various sectors. However, additional resources are needed, and it is crucial for banks to maintain their emphasis on implementing stronger controls, preventive measures, and effective fraud surveillance systems to effectively combat the growing threat of scams.

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