Millions of Aussies risk losing bank account access: 'Not a scam'

You might have received an email from your bank asking you for details and there can be big consequences if you don't answer it. (Source: Getty/Facebook)

Aussies are being urged not to dismiss an email they get from their bank about updating their personal information. With all sorts of scams being rampant at the moment, it's no surprise that many across the country are suspicious of messages coming into their inbox.

But this one definitely shouldn't be missed as you can lose access to your bank account if you don't jump through the hoops. A spokesperson for Commonwealth Bank (CBA) told Yahoo Finance that this was part of an industry-wide practice.

“As part of our ongoing regulatory obligations under the Anti-Money Laundering and Counter Terrorism Act, we contact customers to ensure we have their most up-to-date and correct details which helps us to keep them safe and protect them from fraud," they said.

RELATED

• Urgent warning to every Aussie with an email account: 'This is insane'

• Aussies jump on global trend to break up with 'price gouging' Coles and Woolworths: 'So simple'

• Major banks offer Aussies 'life-changing' payouts over 'dodgy' practice: 'I got $111,000'

Bank customers have flooded social media with messages about the email they recently received.

"I had this a few months back! They were relentless and wanted to know EVERYTHING! I’ve never had this before now," wrote one.

"It is legit and connected with AusTRAC requirements in relation to anti-fraud and money laundering regulations. Very frustrating as we have done it twice in just over 12 months now," said another.

A third added: "I got a message like this from Ubank and I ignored it. After 3 messages they did put a block on my account. It was legit."

Do you have a story? Email stew.perrie@yahooinc.com

What do you have to provide?

Banks have different time limits on when you have to provide your banking information, with CBA giving customers 10 days to fill it out, whereas Ubank allows up to 30 days. Your bank will inform you how long you have before restrictions could be imposed.

The information needed will also depend on the customer but you can be asked for your full name, date of birth, address, what you use your account for, and how much money comes in and out each month.

If customers receive an email from their bank and they are worried whether it's legitimate, they are urged to go into their app where they will be able to input their data, or they can call or visit a branch and do everything in-person.

It's part of a measure that banks have to follow called Know Your Customer (KYC).

The Australian Transaction Reports and Analysis Centre (AusTRAC), which is a government department tasked with monitoring financial transactions to identify money laundering, organised crime, tax evasion, welfare fraud and terrorism financing, set up the KYC system so that banks were forced to understand more about their customers.

AusTRAC said the system helps make banks "aware of any unusual or suspicious activity and reduces the risk of their business or organisation being exploited for money laundering or terrorism financing purposes".

Get the latest Yahoo Finance news - follow us on Facebook, LinkedIn and Instagram.