Seventeen banks – including the big four – have signed up to a “near real-time reporting” system that is designed to reduce scam activity.
The Fraud Reporting Exchange (FRX) will give the participating banks a way to quickly communicate with each other as fraudulent payments are transferred from one institution to another.
That is expected to increase the likelihood of fraudulent payments being frozen and the funds being returned.
“Given every minute can be crucial in disrupting scams, the launch of the FRX is a major development,” Australian Banking Association Chief Executive Anna Bligh said.
“It means more and more scammers are going to hit a brick wall and adds to the arsenal of anti-scam initiatives under way.”
How to protect yourself from scams
Despite the introduction of the FRX, Ms Bligh said consumers still had a role to play in preventing scams – including by reporting fraudulent payments to their bank as soon as possible.
“The sooner that banks know about a fraud, the sooner they can take swift action to try to halt the payment before it gets to the scammers,” she said.
Australians lost a record $3.1 billion to scams in 2022, according to Scamwatch, which was 80% higher than the year before.
Scamwatch’s top three tips for protecting yourself are:
- Stop – take your time before giving money or personal information to anyone who phones, emails or texts you.
- Think – ask yourself if the message or call could be fake?
- Protect – act quickly if something feels wrong. Contact your bank and report scams to Scamwatch.
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