Scam prevention is a team sport

Globally we’re facing one of the fastest growing, sophisticated and complex financial crime threats of the modern era – with devastating and life-changing consequences for victims.

“Scams prevention is not a competitive issue and cross-sector collaboration is essential in the fight against cybercriminals, particularly through the sharing of anonymised data.”

Scammers are targeting every part of our community, from the most vulnerable to the most sophisticated business enterprises.

This threat is borderless, with its agents invisible, targeting victims across multiple mediums – digital, telecommunications, email and even in person.

It undermines the very fabric of trust and security on which our community is based.

I believe systems of cooperation – which protect the anonymity of users on their devices while exposing and stopping criminals – are an important part in the battle against digital scams and fraud.

This is why ANZ and Suncorp Bank alongside Commonwealth Bank of Australia, National Australia Bank and Westpac have partnered with BioCatch on pilot program to develop the world’s first inter-bank fraud and scams intelligence-sharing network.

The need

There is no doubt collaboration is important in the battle against scammers. ScamWatch figures show Australians lost $2.7 billion last year.

As the National Anti-Scam Centre points out, individuals and businesses are scammed for billions of dollars every year and cybercriminals keep shifting their tactics to circumvent anti-scam efforts. Public private partnerships allow us to fight back by providing strength in numbers.

BioCatch this week introduced the BioCatch Trust network to add an additional layer of behavioural and device-based protection against fraud and scams for customers of participating banks.

The network will help bolster anti-scam efforts by allowing us to assess risks associated with the accounts to which customers direct their domestic online payments.

If the network risk indicators identify anomalies associated with a receiving bank account, BioCatch provides this intelligence to ANZ in real time, allowing us to review the transaction before any money leaves our environment.

Fraud and scam payments are nearly always transferred to mule accounts through which the criminals funnel their profits before withdrawing them, according to BioCatch chief Gadi Mazor.

“When the sending and receiving banks involved in these transactions share intelligence tonidentify potential money mules, it should reduce the number of customers who fall victim to scams and make a substantial dent in the ability of criminals to move their illegally obtained money,” Mazor said.

“We know the criminals behind these attacks swap tactics, strategies, intelligence and technology with other rival cybercriminals. We’re proud to now offer Australian banks an opportunity to join their own intelligence-sharing network to fight back.”

How it works

BioCatch Trust uses behavioural and device intelligence to analyse data from users’ online interactions - from payments, accounts, devices and non-monetary interactions. It can assess the potential risks before a payment is even processed.

This is done while using so-called pseudonymisation technology – or technology to ensure user anonymity - to help protect the identities of customers within the network.

This helps financial institutions prevent the types of scams where fraudsters manipulate the victim outside of a digital banking session. As the data suggests, many scams originate via an email, text message or a social media post.

Scam Prevention is a team sport

Scams are a widespread issue and a scourge on our community. At ANZ, and across the banking industry and other sectors, we must continue to invest in prevention and detection to help keep our customers safe from cybercriminals.

Scams prevention is not a competitive issue and cross-sector collaboration is essential in the fight against cybercriminals, particularly through the sharing of anonymised data.

By uniting our efforts and exchanging de-identified information, banks can effectively connect the dots between sending and receiving institutions.

The exchange of data during the BioCatch Trust pilot could provide banks with a comprehensive view of the payment risk radius, allowing for greater end-to-end visibility.

With a clearer understanding of potential risks, banks can proactively identify suspicious activities, enhance their security measures and ultimately protect their customers more effectively.

In a world where digital transactions are increasingly prevalent, working together to combat scams and fraud is not just beneficial — it's imperative.

Initiatives such as BioCatch Trust offer new capabilities to help us in the continued fight against scams and fraud. It will complement existing initiatives planned for 2025 as part of the ABA Scam Safe Accord, including Confirmation of Payee.

We’re pleased to be part of the pilot and look forward to seeing how we can use the risk indicators and insights to complement our existing anti-scam capabilities.

Shaq Johnson is the Head of Customer Protection at ANZ and Paul Gardner is Executive Manager of Financial Crime Operations & Strategy at Suncorp Bank.