Understanding Australia’s Major Banks’ Anti-Scam Platform
Since 2023, twenty 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) gives the participating banks a way to quickly communicate with each other as fraudulent payments are transferred from one institution to another.
This increases 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.
In 2022, Australians lost a record $3.1 billion to scams, an 80% increase from the previous year, according to Scamwatch. In 2023, losses decreased by 11.61% to $2.74 billion. Despite this drop, scam reports rose by 18.5%, underscoring the persistent need for vigilance and effective measures to combat financial fraud.
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.
Contact us today to discuss how we can help you navigate and safeguard your financial decisions. Reach out now to ensure you’re well-informed and prepared!
Licensing statement: Rayne Finance ABN [70 605 100 838] is authorised under LMG Broker Services Pty Ltd Australian Credit Licence 517192. Disclaimer: (1) As with any financial scenario there are risks involved. This information provides an overview or summary only and it should not be considered a comprehensive analysis. You should, before acting in reliance upon this information, seek independent professional lending or taxation advice as appropriate and specific to your objectives, financial circumstances or needs. This publication is provided on the terms and understanding that: (2) LMG Broker Services Pty Ltd, Rayne Finance (Seed Lending Pty Ltd) and the authors, consultants and editors are not responsible for the results of any actions taken on the basis of information in this publication, nor for any error in or omission from this publication. (3) LMG Broker Services Pty Ltd, Rayne Finance (Seed Lending Pty Ltd) and the authors, consultants and editors, expressly disclaim all and any liability and responsibility to the maximum extent permitted by the law to any person, whether a purchaser or reader of this publication or not, in respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this publication.
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