Australia’s ‘Big 4’ bank, Westpac, recently announced its plans to launch a pilot trial of scam protection measures, specifically designed to combat fraudulent activities related to cryptocurrencies. This initiative comes in response to the rise in the number of scams linked to the digital currency market, hoping to mitigate customer losses and decrease potential risks.
According to the data provided, approximately 50% of customer-related losses involve investment scams, and around one-third of all reported scam cases involve direct transfers to cryptocurrency exchanges, such as Binance, making them challenging to trace. This issue is further complicated by the recent news that Binance customers in Australia can no longer use PayID to transfer Australian dollars into their accounts, due to restrictions placed on the exchange by a “third-party provider”.
Westpac’s Group Executive of Customer Services and Technology, Scott Collary, explains that while digital exchanges play an essential role in the financial ecosystem, the escalating popularity of cryptocurrencies has led to an increase in scammers exploiting overseas exchanges.
In late May, Westpac plans to introduce a phased trial of new crypto payment protection blocks, complementing other recent initiatives like Westpac Verify. This feature helps customers identify potential account name mismatches when they are making payments to a new bank-state-branch (BSB) and account number or transferring money to accounts that Westpac has no previous transaction history with.
According to the consumer advocacy group Choice, Australians have incurred losses exceeding $129 million as a result of cryptocurrency-related scams. In 2021 alone, over 12,000 complaints related to such scams were received by the Australian Consumer and Competition Commission.
Crypto investment scams showcase numerous red flags, including deceptive social
Source: Cointelegraph
