Westpac, one of Australia’s major banks, is taking proactive measures to prevent cryptocurrency-related scams by launching a trial of innovative scam protection measures which aim to safeguard customers from fraudulent activities and minimize potential risks. Recent data reveals that investment scams account for close to 50% of all customer losses attributed to scams. Additionally, approximately one-third of scams involve direct transfers to cryptocurrency exchanges, making it challenging to trace the funds. Westpac aims to tackle this issue head-on by implementing scamblockers.
The increase in the use of digital currencies has also attracted con artists who prey on foreign exchanges. While digital exchanges have a legitimate place in the financial ecosystem, Westpac realizes the need for effective safeguards.
Westpac plans to initiate a phased trial of its new crypto payment protection blocks in late May. This trial will be introduced alongside other recent initiatives such as Westpac Verify, which notifies customers of potential account name mismatches when making payments to new bank-state-branch and account numbers or sending money to accounts without prior transaction history with Westpac.
Consumer advocacy group Choice has reported losses exceeding $129 million among Australians with an alarming rise in cryptocurrency scams. Warning signs for cryptocurrency investment scams include false social media adverts, phoney websites, fake papers, and the use of spoofing software. Scammers may also possess undisclosed personal information or attempt to manipulate targets through phone conversations, heightening the need for enhanced security measures.
With its upcoming trial of scam protection measures, Westpac aims to empower its customers and create a safer environment for cryptocurrency transactions to curb losses, preserve trust in the financial landscape, and ensure peace of mind.
Compiled by Coinbold
