Westpac trials new cryptocurrency blocks to prevent scam losses

Westpac has begun trialling new customer protections for some cryptocurrency payments to reduce scam losses.

The latest Westpac data shows investment scams account for approximately half of all scam losses and a third of all scam payments are transferred directly to a cryptocurrency exchange.

Westpac Group Executive of Customer Services and Technology, Scott Collary, estimates the new security measures could save customers millions of dollars.

“Digital exchanges have a legitimate role to play in the financial ecosystem. But since the rise of digital currency, we’ve noticed that scammers are increasingly using overseas exchanges,” Collary said.

“Often our customers only discover they’ve been scammed after the money has left the country, making recovery extremely difficult.

“The trial of our new security measures will better protect customers from scams. In particular, it will target investment scams, which have a devastating impact on our customers.”

A phased trial of the new protection blocks will be rolled out over the coming weeks.

Currently, Westpac’s scam and fraud teams detect over 60 per cent of attempted scams and they are continually upgrading security to better protect customers.