Australian banks have unveiled a new digital platform designed to swiftly detect and freeze money being sent to scammers.
The Fraud Reporting Exchange (FRX) platform, which was announced by the Australian Banking Association, allows for real-time reporting of fraudulent bank-to-bank payments.
This initiative aims to enhance the chances of freezing and returning funds to affected customers. The platform enables banks to halt multiple fraud transactions related to the same scam, share intelligence to prevent losses, and facilitate streamlined fund returns where possible.
According to the Australian Banking Association CEO Anna Bligh, the launch of the FRX marks a significant development in combating scams as it acts as a barrier for scammers and contributing to ongoing anti-scam efforts.
“Given every minute can be crucial in disrupting scams, the launch of the FRX is a major development,” she said.
“It means more and more scammers are going to hit a brick wall and adds to the arsenal of anti-scam initiatives under way.”
So far, 17 banks, including the major four, have joined the platform, with a trial revealing a significant reduction in the time taken to resolve scam cases.
While consumer rights groups welcome the FRX as a positive step, they believe more needs to be done to prevent scams and urge the government to enforce policies that would require banks to reimburse scam victims.
Consumer Action Law Centre CEO Stephanie Tonkin states that scams should be prevented from reaching consumers in the first place.
“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,” she said.
The platform’s implementation is in response to the alarming figures of Australians losing over $3 billion to scams in 2022 alone.
In addition to the FRX, the federal government has also allocated $58 million to establish a national anti-scams center, which will facilitate scam reporting and information sharing among banks, law enforcement, and vulnerable communities.