Our fight against scammers

I would like to wish all our customers a Happy New Year. I hope you and your families had a restful break and are ready to conquer your 2024 goals.

A new year is often an exciting time as it provides a clean slate and opportunity to gain new perspectives. As we embark on this fresh chapter of 2024, let's not only set personal and professional goals but to also prioritise safeguarding ourselves against scams and fraud a steadfast resolution for the year ahead.

The world of scams is dynamic, and staying informed is one of our best defences. At Qudos Bank, we are committed to protecting our customers as we understand the impact scams can have on their livelihoods and mental wellbeing. A number of our customers who attended the recent 2023 Qudos Bank Annual General Meeting enquired about what steps we are taking as an organisation to protect customer funds.  

In this update, we delve into the ways Qudos Bank is continuing to protect our customers. The wider banking industry is also introducing protective measures under the Scam-Safe Accord by implementing new technologies and detection methods to help protect Australians. Our dedication to your financial wellbeing goes hand in hand with your commitment to staying vigilant against scams. We also share how we are strengthening our security, as well as tips on how you can protect yourself.

All you need to know about the Scam-Safe Accord

In November 2023, the Customer-Owned Banking Association (COBA) and Australian Banking Association (ABA) launched the Scam-Safe Accord where a set of comprehensive anti-scam measures will apply across the entire Australian banking industry including community-owned banks, building societies, credit unions and commercial banks.

As part of the Accord, all banks must commit to the set principles to disrupt, detect and respond in the scams and fraud space. Qudos Bank strongly supports the Scam-Safe Accord and are well placed in many of the requirements that enhances protective measures.  Principles include:

• Increased verification on bank accounts to help prevent identity fraud, such as incorporating biometric technology for the detection of high-risk activity.
• Introduction of warnings and payment delays customers who are making first-time transfers to an account can expect more delays, questions and warnings from all banks to protect and educate customers from falling victim to a scam.
• All Australian Financial institutions will commit to sharing scam intelligence
• Limit payments to high-risk channels to protect customers as banks will be placing restrictions on payments to high-risk channels such as cryptocurrency platforms to protect customers from possible scams.

The sector has pledged $100 million investment to collectively to develop an industry-wide verification of payee system. This system employs name-checking technology, providing customers with clear identification of recipient account holder details, ultimately lowering the risk of individuals transferring funds into the wrong account.

Strengthening security measures

The safety and security of our customers is Qudos Bank’s top priority. As outlined in the Scam-Safe Accord above, Qudos Bank has a range of security measures already in place to protect your personal information and account activity.

We became the first mutual bank to subscribe to the Fraud Reporting Exchange (FRX), which is a trusted, secure, single platform for real time reporting and actioning of fraudulent activities between issuing and recipient financial institutions.

Through our security monitoring and continued efforts by our Fraud team, during the 2023 financial year, we were able to prevent or recover $3.10 million of the $4.98 million in attempted fraudulent transactions (62%).

In the upcoming year, we are on track to launch further enhancements to account monitoring with the implementation of Behavioral Biometrics technology. This innovative addition, combined with our existing robust security measures, is another way we demonstrate our commitment to help protect our customers.

Keep scam safe all year round

As scams continue to evolve, we encourage you to consider the following tips to help protect yourself:

• Keep informed – Our Fraud & Security hub includes helpful resources, outlining tips and information to keep you safe from different types of scams and fraud. It allows customers to continue to educate themselves on scams and fraud. We encourage you to subscribe to relevant channels and websites, such as the ACCC’s Scamwatch for latest up-to-date news and warnings.
• Improve your card security – it is your responsibility to keep your PIN secure. It is important that you take the reasonable steps in ensuring that you don’t share or disclose your PIN to anyone else.
• Improve online banking security – do not share your online banking information with anyone, including your password. Make sure you use a unique password that does not include any of your personal information that could be easily guessed.

Prevention is key to helping you not fall for sophisticated scams. We encourage you to keep diligent in this space so it can help you minimise the risk of falling for a scam. If something doesn’t look right, our Fraud team are available to assist. You can call them on 1300 747 747 Option 3 and Option 3 from Monday-Friday 7am-7pm and Saturday 9am-5pm (AEDT). Stay safe everyone.

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 By Antar Chahine
  Chief Risk Officer

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