Commonwealth Bank wants a new scam code being developed by Treasury to include banks, digital platforms, telcos, crypto exchanges, and other payments providers to make sure the costs of growing levels of fraud are spread around.
CBA said during a security briefing with reporters on Monday it had “prevented or recovered” more than $100 million of scams targeted at CBA customers in 2021. But it did not disclose the amount it has compensated customers who have been the victims of fraud, on concerns this could embolden criminals.
CBA said the government’s broad direction is appropriate, but it should be unified in a singe cross-industry code. Any new code should allocate responsibility across banks, telcos, technology platforms like Apple and Google, cryptocurrency exchanges and the fintech and broader payments sector. The Consumer Action Law Centre called on Monday for the government to introduce mandatory rules for banks to prevent scams and reimburse blameless victims, pointing to ‘Contingent Reimbursement Model Code’ in the UK. It pointed to TSB Bank in the UK providing customers a ‘Fraud Refund Guarantee’, committing it to reimbursing customers for any losses incurred as a result of being tricked by a scam, and said Australian banks should follow a similar approach.
The ACCC found scams were more likely against people aged over 65 and losses steadily increased with age. Scams on Indigenous Australians were up 43 per cent between 2020 and 2021 with reported losses up 142 per cent. The Albanese government is also preparing to establish a national Anti-Scam Centre, based on the UK’s ‘Fusion Cell’ model, which brings together law enforcement, banks, telcos and consumer advocates.