Australian banks lagging on fraud prevention
Australian financial institutions are lagging behind their regional rivals in spending on fraud prevention and are slow to adopt emerging technologies.
According to a new study commissioned by ID verification company GBG and conducted by the Asian Banker, featuring 324 respondents from financial institutions across six countries in the Asia-Pacific region, found that these institutions in Australia are spending far below the average of these countries on fraud prevention technology.
The countries included in the study are Australia, Thailand, China, Indonesia, Malaysia and Vietnam.
The average spend by financial institutions on fraud prevention technology for 2020-21 is set to be $114.1 million, the study found, while for those companies in Australia it will only be $104.3 million.
This is far below the top-ranking countries in the study, with financial institutions in Thailand to spend $130.7 million on average, Chinese firms to spend $125.2 million and Indonesian companies to spend $121.8 million.
The ongoing COVID-19 pandemic means financial institutions need to be even more proactive in protecting from fraud and embracing new technologies, GBG regional general manager of Australia Carol Chris said.
“The ongoing shift to online and mobile banking and transactions, particularly among superannuation, financial planning and education enterprises, has been accelerated by the pandemic,” Chris said.
“The unpredictability of the current market and how it is evolving is driving a need among Australian financial institutions to increase readiness to be agile in how they future-proof themselves with fraud technology.”
In a significant concern for local companies, the report also found that nearly 60 per cent of respondents said that their company’s cybersecurity, fraud control and compliance functions are completely independent functions and no insights are shared between them.
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Source: Australian banks lagging on fraud prevention | Information Age | ACS
