Aussie banks launch new digital platform to stop fraudsters from receiving payments
Australian banks have come together to launch a new digital platform that will help them freeze scam payments before they reach fraudsters.
17 Australian banks are set to join the FRX platform
The Australian Banking Association (ABA) says the new Fraud Reporting Exchange (FRX) platform will facilitate quick reporting of fraudulent payments en-route or when transferred to another bank, helping banks to stop and recover as much money as possible when customers fall victim to scammers.
According to the ABA, in its trial phase, the platform cut down the time taken to resolve scam cases by more than half.
Its key features include “near real-time” reporting of fraudulent transactions between member banks; the ability to halt multiple fraud transactions which are part of the same scam; shared intelligence between banks; faster and more streamlined return of funds where possible; and secure and tracked communications between banks to reduce the need for multiple calls and emails.
The FRX platform is owned and operated by the Australian Financial Crimes Exchange (AFCX), an independent body built and funded by Australian banks.
At least 17 Australian banks have joined or are in the process of joining the FRX. They include AMP, ANZ, Bank Australia, BOQ, Bendigo and Adelaide Bank, Commonwealth Bank, HSBC, ING, Macquarie, MyState, NAB, Rabobank, Suncorp, Westpac, and three Customer Owned Banking Association (COBA) banks.
“Given every minute can be crucial in disrupting scams, the launch of the FRX is a major development,” says Australian Banking Association CEO Anna Bligh. “It means more and more scammers are going to hit a brick wall and adds to the arsenal of anti-scam initiatives underway.”
