Australian banks join new Fraud Reporting Exchange digital platform to help halt payments to scammers
Australian banks today launched a new digital platform that will facilitate the quick reporting of fraudulent payments en route or transferred to another bank. This will help disrupt fraudsters and scammers by allowing the reporting of scam payments in close to real time, boosting the likelihood that funds can be frozen and returned to customers.
The new Fraud Reporting Exchange (FRX) platform will enable faster and more targeted communication to help banks stop and recover as much money as possible when customers have paid scammers.
“Given every minute can be crucial in disrupting scams, the launch of the FRX is a major development,” Australian Banking Association (ABA) Chief Executive Officer 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 underway.
“With 17 banks already onboard or in the process of joining the FRX, banks are now better placed to jointly identify funds which have been fraudulently transferred, which should improve their ability to prevent any further losses to a customer.”
The FRX is owned and operated by the Australian Financial Crimes Exchange (AFCX), an independent body built and funded by Australian banks.
A trial of the FRX platform has shown that the time to resolve most scam cases dropped by more than half.
AFCX Managing Director David Pegley said the new FRX platform will help enable a more streamlined approach to managing scams.
“Thanks to the banking sector, and particularly the four major banks, this new platform is set to make an impact on scammers and can also be used to help to bring together banks and any other organisations involved in payments,” Pegley said.
Bligh said it is imperative that consumers report a fraudulent or scam payment 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.”
Key features of the new Fraud Reporting Exchange:
Near real-time reporting of fraudulent transactions between member banks
The ability to, where possible, halt multiple fraudulent transactions taking place as part of the same scam
Shared intelligence between banks to assist with fraud and loss prevention efforts
A faster, more streamlined return of funds, where possible
Secure and tracked communications between member banks within the platform with agreed timeframes, reducing the need for multiple phone calls and emails between banks.