“We do think this is an important issue confirming who the payee is,” Mr Sims said. “Some banks say there are other things coming along which will fix the problem. I’d be asking the banks,if you have an alternative,how far away is it?”
The UK payments regulator introduced new rules last year that force banks to name-check transactions and issue notifications if there is a mismatch. Australian Institute of Conveyancers national secretary Dion Dosualdo said this was designed to reduce fraud,and the Australian banking sector’s refusal to implement a similar system meant it was complicit.
“The fact there is no dual verification there means the banks can wash their hands of the situation,” Mr Dosualdo said. “This is what the scammers are cashing in on.”
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The Australian Banking Association (ABA) said it was studying the UK model closely,but noted the UK had seen a “significant increase” in scams despite the new systems. “Australia’s banks are looking to implement better and more effective solutions,” a spokesman said.
“The effective detection and disruption of scams is a priority for the banking industry,law enforcement and regulators. In terms of the banking industry,there has been a large increase in investment both in terms of new experts and new technology to assist customers.”
The AgeandHeraldreported this week thatNAB failed to block transactions worth almost $100,000 made by 32-year-old Sanjay Joseph to a fraudster who had infiltrated his conveyancer’s systems.