In a bid to shield its customers from the rising risk of crypto scams, National Australia Bank (NAB) has announced a series of measures to combat fraudulent activities. The bank, which recently halted millions in payments between March and July 2023, will now implement blocks on select cryptocurrency platforms notorious for scams.
Cryptocurrency Scams On The Rise: Urgent Action Required
According to a statement released by NAB, the institution has intervened in over $270 million worth of customer payments in the past four months alone, citing concerns over potential scam activity.
Insights gleaned from the NAB app indicate that approximately 12% of payments were abandoned when customers received real-time prompts, indicating a heightened sense of caution among users.
Chris Sheehan, the NAB Executive for Group Investigations and Fraud, emphasized the significance of the measures taken to safeguard customers from scams.
“Introducing payment prompts, taking action on spoofing, and eliminating the use of links in unexpected text messages are some of the key steps we have recently implemented,” stated Sheehan.
He further added:
“We are now intensifying our efforts by blocking payments to high-risk cryptocurrency exchanges, aiming to thwart scammers at every turn.”
The move is part of NAB’s broader commitment to balancing speed and safety in the digital economy. Research conducted by the bank revealed that four in ten Australians are willing to accept slower payment processing if it ensures better protection against scammers.
The decision to block payments to high-risk cryptocurrency exchanges arrives in response to the alarming statistics surrounding cryptocurrency-related fraud. Nearly half of the past month’s scam funds reported to the Australian Financial Crimes Exchange were linked to cryptocurrency.
Consequently, NAB’s initiative aligns with the independent campaign that unites businesses, government bodies, law enforcement agencies, and industry groups to combat financial and cybercrime.
As cryptocurrency scams continue to increase, Australians suffered losses exceeding $221 million last year. Criminal organizations operating in a transnational capacity exploit cryptocurrency platforms to transfer stolen funds overseas swiftly.
Sheehan stressed the bank’s determination to make it exceedingly difficult for these criminals to operate and protect its customers from falling victim to such scams.
NAB’s collaboration with telecommunications providers to prevent criminal infiltration of phone numbers and legitimate text message threads has already yielded promising results. Reports of NAB-branded spoofing scams have dropped by 29% between January and May thanks to these joint efforts.
NAB concludes with a series of top tips for customers, emphasizing the importance of thinking before clicking or paying and the fact that they will never request personal or banking details through text message links or ask for money transfers to keep funds safe.
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