Commonwealth Bank (CBA), the largest bank in Australia, has taken a decisive step in protecting its customers from potential crypto scams. The bank announced that it would decline or temporarily hold specific payments to crypto exchanges, citing the increasing risk posed by scammers.
This move comes on the heels of two major global exchanges facing a lawsuit from the United States securities regulator. Just a few weeks ago, another leading Australian bank, Westpac, prohibited its customers from transacting with crypto exchange Binance.
Caroline Bowler, CEO of BTC Markets, took to Twitter to express her thoughts on the matter, emphasizing the need for collaboration between banks and the crypto industry to safeguard their mutual clients.
CBA Sets Limits on Customer Payments to Crypto Exchanges
Effective immediately on June 8, CBA will decline certain payments or subject them to a 24-hour hold. Additionally, in the upcoming months, the bank plans to introduce a limit of $10,000 per month for customer payments to exchanges for cryptocurrency purchases.
James Roberts, Commonwealth Bank General Manager of Group Fraud Management Services, acknowledged consumers’ growing interest in cryptocurrencies.
He expressed concern over scammers taking advantage of this trend by posing as legitimate investment opportunities or diverting funds into cryptocurrency exchanges.
Roberts explained that the implementation of these measures aims to reduce the number of scams and mitigate the financial losses suffered by customers.
However, he acknowledged that they would not completely eliminate the risk of falling victim to scams involving payments to cryptocurrency exchanges.
CBA intends to closely monitor the effectiveness of these measures and conduct ongoing reviews. Roberts highlighted that while they won’t eradicate the risk entirely, these initiatives are part of a broader strategy to help customers minimize their vulnerability to scams.
In addition to these new measures, CBA recently announced its plan to offer NameCheck anti-fraud technology to external organizations that process payments in Australia.
This technology leverages advanced algorithms and available payment data to verify the accuracy of account details, providing customers with reassurance that their money is being sent to the correct recipient.
Currently accessible on the CommBank App, NetBank, and CommBiz for business customers, NameCheck forms part of CBA’s commitment to combat scams and frauds on a national scale.
As the battle against scams and fraudulent activities continues, CBA emphasizes the importance of collaboration among government entities, regulators, banks, telcos, and other industry sectors to ensure the safety of Australians.
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