Westpac trials ID system to stop scammers
Westpac has launched a new feature to block suspicious transactions amid concern about a boom in scams.
Westpac is planning to launch a new identity verification system for customers, after turning on a new scam protection system to check account details entered by customers against those recorded in other systems.
Westpac announced its new Verify system would alert a customer if there was a potential account name mismatch for payments to a BSB and account number via the New Payments Platform. The alert will also apply when a Westpac customer transfers money to an account they haven’t dealt with before.
Westpac said the system would put a hold on potentially suspicious transactions for four hours while the bank attempted to contact customers via SMS to alert them to the issue.
Customers are prompted to review the transaction and confirm account details are correct or cancel the payment. If customers do nothing within four hours, the transaction will go ahead.
Westpac chief executive of consumer and business banking Chris de Bruin said the bank had introduced the measure in a bid to combat a boom in scams.
“Our latest scam data revealed customer losses reached a new record high in December, doubling from the year prior,” Mr de Bruin said. “The majority of scam-related transactions happen when a customer is tricked into transferring their money to a scammer via online or mobile banking.”
The bank said it would roll out the functionality to customers over the next month, after it wrapped up testing the feature.
Westpac is the latest bank to launch identity verification after CBA rolled out a similar technology which checks account details against those in the bank’s records.
Mr de Bruin said Westpac was concerned customers were sending funds to accounts, thinking they were legitimate businesses or people when in fact they were not.
“Westpac will now pause some payments and give customers an opportunity to check if the recipient details are correct before proceeding,” he said. “This may also help reduce cases of mistaken payments, where money is sent to an unintended recipient by accidentally entering incorrect BSB or account numbers.”
Mr de Bruin said bank customers should look to use the new PayID system “which provides even more protection”.
The Australian Financial Complaints Authority said Westpac and CBA’s new systems were a welcome initiative to protect consumers.
AFCA chief ombudsman David Locke said he was deeply concerned about the increase in scam complaints, which have surged to 340 a month.
“The impact of a scam on a person can be devastating and life changing,” he said.
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