Commonwealth Bank finds customers using transactions for abuse messages

CBA says it’s taking action after uncovering thousands of examples of customers using nuisance transactions to deliver abusive messages to others.

CBA says it will stamp out financial abuse from its digital banking platforms. Picture: AAP

Commonwealth Bank says it will stamp out financial abuse from its digital banking platforms after identifying some transaction descriptions entered into online banking accounts linked to domestic and family violence.

The country’s largest bank has bolstered its acceptable use policy, which will prohibit account holders from using CBA banking platforms to stalk, harass or intimidate another person.

NetBank and Commbank app users engaging in unlawful, defamatory, mental and physical violence will have their digital banking services suspended or cancelled.

CBA general manager of community and customer vulnerability Catherine Fitzpatrick, said the issue was first identified after the bank found disturbing messages in the deposit transaction details of a customer experiencing domestic abuse.

The bank then conducted a larger scale analysis to gauge the extent of the issue.

“We were horrified by both the scale and the nature of what we found,” Ms Fitzpatrick said.

“In a three-month period, we identified more than 8000 CBA customers who received multiple low-value deposits, often less than $1, with potentially abusive messages in the transaction descriptions,” she said.

The Australian understands CBA’s user policy changes do not give it the ability to report a case of financial abuse or domestic violence between customers to authorities.

However, a customer is able to use deposit transaction details as evidence within a court of law.

Ms Fitzpatrick said 90 per cent of reported domestic violence cases involve some aspect of financial abuse.

“We need to be talking about what financial abuse is, what the signs are, and where to get support and help,” Ms Fitzpatrick said.

CBA said it had notified the country’s other major banks regarding the policy change and the issue of customers unlawfully using online financial products.

ANZ and Westpac both have the existing right to close an account for inappropriate behaviour.

CBA’s policy change coincides with an internal probe conducted by Westpac into its alleged anti-money laundering scandal, identifying that technology pitfalls and human error were partly to blame.

The Australian Banking Association (ABA) said banks need to take swift action to stamp out threatening behaviour conducted in digital banking services.

“The use of bank transaction communications as a vehicle for threatening abuse gives a shocking insight into the lengths that violent partners will go to threaten, harass and abuse,” ABA chief executive, Anna Bligh said.

The ABA has included commitments to assist vulnerable people in its new banking code of practice.

Last week anti-money laundering regulator Austrac outlined plans to relax rules which gives flexibility for banks on anti-money laundering and counter-terrorism identification checks for those fleeing abuse.

Those changes allow banks and other regulated entities to identify those customers in “alternative ways” initially, if they do not have access to documents and items such as a driver’s licence or birth certificate.

The federal government’s eSafety commissioner Julie Inman Grant, said digital customer banking platforms should be designed with online safety in mind.