National Australia Bank Halts $270M In Scams
The National Australia Bank (NAB) has successfully intervened in over $270 million worth of customer payments in the span of four months, between March and July, amid growing concerns over scams and fraud. The bank’s latest insights revealed that when customers received a real-time payment prompt through the NAB app, approximately 12% of payments were abandoned, demonstrating a growing awareness and vigilance among customers.
We've helped stop $270 million in suspicious payments in four months, with 12% of payments in the app abandoned before sending. 💳🚨
— NAB (@NAB) July 17, 2023
NAB’s Anti-Scam Measures
To combat the rising threat of scams, NAB has introduced several measures in the past six months to safeguard its customers. These include the implementation of payment prompts, taking action against spoofing, and prohibiting the use of links in unexpected text messages. Additionally, the bank is now blocking certain payments to high-risk cryptocurrency exchanges, a move aimed at halting scammers in their tracks.
Chris Sheehan, NAB’s Executive for Group Investigations and Fraud, emphasized the significance of these measures in safeguarding customers’ interests. The payment prompts feature a checklist based on detecting uncharacteristic activities, encouraging customers to pause and review their payments before confirming. The high rate of payments abandoned daily, amounting to around $290,000, suggests that customers are taking the time to think critically before proceeding with payments.
Thwarting Transnational Scammers
Sheehan, a former executive of the Australian Federal Police, underscored the need for a national dialogue on striking a balance between speed and safety in the digital economy. NAB’s research revealed that four out of ten Australians were willing to accept slower payments if it meant better protection against scammers.
In response to the increasing prevalence of cryptocurrency-related scams, NAB has taken further action by blocking payments to high-risk cryptocurrency exchanges. Recent data from the Australian Financial Crimes Exchange indicated that almost 50% of reported scam funds were linked to cryptocurrency. By restricting these payments, NAB aims to disrupt organized transnational crime groups that utilize cryptocurrency platforms to swiftly transfer stolen funds overseas. The bank’s collaboration with telecommunication providers to combat spoofing, where criminals infiltrate phone numbers and legitimate text message threads, has also shown positive results. This effort led to a 29% reduction in NAB-branded spoofing scams between January and May.
