Banks Come Together to Deploy Facial Recognition and Behavioral Biometrics Against Fraud
In a decisive move against the rising wave of scams, Australian banks have joined hands to launch the Scam Safe Accord, which is an initiative introducing mandatory biometric checks for new account openings. The collaborative effort involves a coalition of major commercial banks and customer-owned banks, collectively committing to a robust defense against scammers.
Under Scam Safe Accord, Australian banks are set to implement a confirmation-of-payee system across the board. With a substantial $100 million investment, the initiative aims to fortify the certainty and security of money transfers within the banking industry. The rollout, scheduled for 2024 and 2025, includes the incorporation of facial recognition, fingerprint, and behavioral biometrics.
In order to implement these measures effectively, the Accord mandates major banks to incorporate at least one biometric check for new individual customers opening accounts online by the end of 2024. These checks will either analyze behavioral patterns or involve facial and fingerprint recognition, providing banks with robust tools to verify customer identities.
In addition to biometrics, Scam Safe Accord introduces enhanced security measures within banking systems. The strengthened defenses, while crucial for safeguarding customers, may lead to additional delays when customers seek to raise payment limits or transfer funds to new recipients.
"The scale of fraud in Australia, and the amount of it that has been thwarted, shows how essential it is that the sector commits to safeguarding the country’s customers and small businesses. Recent data from banks shows that $600 million in stolen funds has been returned to customers over the last year," Anna Bligh, CEO of the ABA said.
This initiative, however, goes beyond individual banks, fostering collaboration through expanded intelligence sharing. As part of this strategy, all banks will join the Fraud Reporting Exchange, gaining access to scam intelligence from the Australian Financial Crimes Exchange by mid-2024. This collective effort aims to tighten fraud prevention measures and expedite recovery processes for victims of scams.
Mike Lawrence, CEO of Customer Owned COBA, said, "The initiatives we launch today are a significant step forward and demonstrate the banking industry’s commitment to fight scams. It doesn’t matter if someone banks with a regional mutual bank or the largest bank in the country; customers can be confident their bank is working hard to protect their money."
He believes that the initiatives launched today are a significant step forward and demonstrate the banking industry’s commitment to fight scams. According to him, preventing scammers from taking your hard-earned money is a shared responsibility. "As scammers work hard to devise new ways to steal money, it’s critical that governments, industry, and consumers remain vigilant to make Australia a hard target for scammers," he added.
As the national digital ID program faces uncertainties, banks are forging stronger connections to fortify the nation's defenses against evolving threats. With biometric checks and enhanced security measures at its core, the initiative signals a new era in the fight against fraud. This is also a timely adoption of technology at a time when fraudsters are deploying everything from AI to deepvoice in order to target consumers.
