CBA takes a stand against cryptocurrency scams

CBA takes a stand against cryptocurrency scams

As cryptocurrencies become increasingly popular, the risk of scams targeting investors has grown. In response, Commonwealth Bank (CBA) has launched new safety measures aimed at safeguarding its customers. The bank will now impose restrictions, delays, and limits on certain payments to cryptocurrency exchanges.

The newly introduced guidelines will enable CBA to either delay for 24 hours or decline certain transactions directed to cryptocurrency exchanges. Furthermore, in the forthcoming months, CBA plans to implement a $10,000 cap on monthly transactions where the bank ascertains that the payments are for cryptocurrency purchases.

The move is designed to combat fraud, as explained by Commonwealth Bank’s general manager of group fraud management services, James Roberts. Roberts said, “Consumer interest in cryptocurrencies has been increasing and unfortunately scammers globally are capitalising on this trend and masquerading as legitimate investment opportunities or diverting funds into cryptocurrency exchanges.”

He added that the escalation in scam incidents, often leading to significant customer losses, necessitated the implementation of these protective measures. These include 24-hour holds, declines, and restrictions on outbound payments to cryptocurrency exchanges. These efforts aim to decrease both the occurrence of scams and the financial impact on customers.

CBA will continue to monitor the effectiveness of these anti-fraud initiatives, subjecting them to regular review. “While these measures will not eliminate the risk of customers suffering losses as a result of a scam that involves a payment to a cryptocurrency exchange, they are part of a range of initiatives designed to help customers reduce their risk of falling victim to a scam,” Roberts said.

This initiative by CBA complements its recent announcement that its industry-leading anti-fraud technology, NameCheck, will be made available to external organisations processing payments in Australia. This is part of a national approach to combat scams and fraud within the community.

NameCheck utilises advanced technology and available payment data to provide an indication of whether the account details entered appear accurate. This aids customers in ensuring their money reaches the correct account. The service is currently accessible to customers via the CommBank App, NetBank, and CommBiz for business customers.

Roberts emphasised the need for a collaborative approach to fight scams in Australia, noting that CBA is committed to contributing to this effort in cooperation with the government, regulators, banks, telecommunications companies, and other industry sectors.

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