Australian banks have joined forces to create a new Fraud Reporting Exchange digital platform to help stop payments going to scammers.
Aussie banks launched the new digital platform to facilitate the quick reporting of fraudulent payments.
Quick reporting would help disrupt fraudsters and scammers by allowing the reporting of scam payments in close to real time, boosting the likelihood that funds could be frozen and returned to customers, the Australian Banking Association (ABA) said.
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 been duped by scammers.
“Given every minute can be crucial in disrupting scams, the launch of the FRX is a major development,” ABA CEO 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.”
What is FRX and how does it work?
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 the time to resolve most scam cases dropped by more than half.
AFCX managing director David Pegley said the new platform would 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.
What will you need to do if you’ve been scammed?
With the new platform in place, Aussies have been told it’s imperative to report scam 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,” Bligh said.