A multitude of Australian banks, including the majors, have signed on to use a new digital platform developed to respond in real-time to fraudulent transactions.
The Fraud Reporting Exchange (FRX) will prevent potential scams and frauds by fast-tracking payment reporting and intelligence sharing between institutions, increasing the chance of funds being caught and returned to customers.
The single platform is said to offer more “targeted communication” to assist banks to halt and recover funds when customers have paid scammers, according to the Australian Banking Association (ABA).
Owned and operated by the Australian Financial Crimes Exchange (AFCX), the new digital platform was funded by Australian banks, with trials demonstrating the time to resolve most scam cases dropped by more than half.
ABA chief executive Anna Bligh said time is a "crucial" element in disrupting scams, with the launch of the FRX “a major development”.
“It means more and more scammers are going to hit a brick wall and adds to the arsenal of anti-scam initiatives underway," she said.
“With 17 banks already onboard or in the process of joining the FRX, banks are now better placed to jointly identify funds which have been fraudulently transferred, which should improve their ability to prevent any further losses to a customer."
Banks already signed up, or in the process of joining the platform include the Commonwealth Bank, NAB, ANZ and Westpac.
AMP, ING, Bank of Queensland, Macquarie Group, Suncorp, Rabobank, HSBC, Bendigo and Adelaide Bank, MyState and Bank Australia are also platform members.
A further three customer-owned banking association (COBA) banks are also in the process of joining the platform.
