ASIC today released a report into the anti-scam practices of 15 banks outside the four major banks.

Report 790 Anti-scam practices of banks outside the four major banks (REP 790) examined the scam prevention, detection and responses of these 15 banks.  

The report highlighted issues including: 

• significant variability in the maturity of scam strategies and governance,  
• inconsistent and narrow approaches to determining liability, and  
• a lack of support for scam victims.  

ASIC Deputy Chair Sarah Court said while recent indicators from the ACCC suggested overall scam losses were decreasing despite increased scam reports, ASIC’s findings highlighted the need for a coordinated effort to ensure the trend continues. 

‘Like the four major banks we reported on last year, the 15 banks in this latest report also demonstrated a less mature approach to scams strategy and governance than we expected. 

‘While recent data suggests Australians are becoming more savvy in avoiding scams, we need continued focus across industry and regulators to effectively tackle this important issue.  

‘The data in this report underscores where the 15 reviewed banks were mid last year in the fight against scams and before the delivery of key anti-scam infrastructure including the National Anti-Scam Centre and ASIC’s website takedown service.  

‘While scam education initiatives many banks are delivering are one step in the right direction, this report outlines areas where banks needed to improve. 

‘In case studies reviewed in the preparation of this report, ASIC observed examples of poor customer service, including slow response times, mishandling of reports, confusing communications, and failure to identify vulnerable customers impacted by scams. 

‘We expect all banks regardless of their size, to pull their weight in the fight against scams. Boards and senior management have a key role to play in driving improvement. 

‘What’s important for customers before you act is that you: 

• STOP – Don’t give money or personal details if you’re unsure. Say no, hang up, delete. 
• CHECK – Scammers pretend to be from organisations you know and trust. If you’re not sure, call the official phone number of the organisation to check, and  
• REPORT – to www.scamwatch.gov.au  

‘And if you think you have been scammed, you should visit scamwatch.gov.au where there are a range of resources to help limit the damage and protect yourself from further loss.’ 

The report is part of ASIC’s ongoing focus on anti-scam practices in the broader financial service landscape.  

ASIC is reviewing the anti-scam practices of superannuation trustees.  

Background

The 15 entities that ASIC reviewed as part of REP 790 included:  

• AMP Bank Limited  

• Bank Australia Limited  

• Bank of Sydney Ltd  

• Bendigo and Adelaide Bank Limited  

• Beyond Bank Australia Limited  

• Credit Union Australia Ltd  

• Heritage and People’s Choice Limited  

• ING Bank (Australia) Limited  

• Macquarie Bank Limited  

• Newcastle Greater Mutual Group Ltd  

• Norfina Limited (trading as Suncorp Bank)  

• PayPal Australia Pty Limited  

• Rabobank Australia Limited  

• Teachers Mutual Bank Limited  

• Wise Australia Pty Ltd  

According to the ACCC, Australians lost $2.74 billion to scams in 2023. While overall losses decreased by 13%, total scams reported by Australians increased 18.5% highlighting the increasing adaptability and sophistication of techniques used by scammers.  

Of the 15 banks reviewed, only one third had organisation-wide scam strategies, and many did not have an organisation-wide policy for determining reimbursement. The report also showed a lack of adequate training for frontline staff to support customers who reported they had been scammed. 

ASIC’s analysis found that reviewed bank customers bore the brunt of scam losses (scams transactions by customers less amounts detected and stopped and recovered), footing the bill for 96% of total scam losses over the 2022-2023 financial year. The report also found customers who complained were more likely to be reimbursed than those who did not.   

In addition, the findings revealed banks detected and stopped 19% of scam transactions by value, though detection and stop outcomes varied significantly across the banks. 

In April 2023, ASIC released a report on anti-scam activities of the four major banks (REP 761), which found that while they recognised the significant harm caused by scams, their overall approach to scams strategy and governance was overall less mature than expected.

Downloads

Report 790 Anti-scam practices of banks outside the four major banks (REP 790)