(20 August 2024 – Australia) ASIC has released a report into the “less mature approach” to anti-scams strategy and governance of 15 banks outside the Big Four majors.
The report examining scam prevention, detection and responses highlighted issues including significant variability in the maturity of scam strategies and governance, inconsistent and narrow approaches to determining liability and a lack of support for scam victims.
Of the 15 banks reviewed, only one in three had organisation-wide scam strategies in place and many did not have an organisation-wide policy for determining reimbursement. The report also revealed a lack of adequate training for frontline staff to support customers who reported they had been scammed.
According to the ACCC, Australians lost A$2.74 billion to scams in 2023. While overall losses decreased by 13 percent, total scams reported by Australians increased 18.5 percent, highlighting the increasing adaptability and sophistication of techniques used by scammers.
“While recent indicators from the ACCC suggested overall scam losses were decreasing despite increased scam reports, ASIC’s findings highlighted the need for a coordinated effort to ensure the trend continues. Like the four major banks we reported on last year, the 15 banks in this latest report also demonstrated a less mature approach to scams strategy and governance than we expected” commented ASIC Deputy Chair Sarah Court.
“While recent data suggests Australians are becoming more savvy in avoiding scams, we need continued focus across industry and regulators to effectively tackle this important issue. The data in this report underscores where the 15 reviewed banks were mid last year in the fight against scams and before the delivery of key anti-scam infrastructure including the National Anti-Scam Centre and ASIC’s website takedown service.”
“While scam education initiatives many banks are delivering are one step in the right direction, this report outlines areas where banks needed to improve. In case studies reviewed in the preparation of this report, ASIC observed examples of poor customer service, including slow response times, mishandling of reports, confusing communications, and failure to identify vulnerable customers impacted by scams. “
“We expect all banks regardless of their size, to pull their weight in the fight against scams. Boards and senior management have a key role to play in driving improvement.”