“The fraud intelligence technology is another milestone for our banks in meeting their new scam prevention commitments that come into force at the end of the month. We have a prevention-led strategy to fighting scams, which aligns with global best practice.”
New Zealand’s retail banks have implemented new fraud intelligence technology to help stop scammers using accounts to move stolen money. The new technology helps banks meet their five new scam prevention commitments that will come into force on 30 November under the Code of Banking Practice. The announcement comes as Fraud Awareness Week kicks off in New Zealand.
Scammers use so-called ‘mule’ accounts to move stolen money. The new technology means banks can more quickly identify and share information about mule accounts, and freeze funds before they’re moved. This can assist in recovering stolen money by helping to stop it being sent overseas, where it’s almost impossible to get it back.
Although it’s still early days, thousands of cases of intelligence sharing have resulted in the recovery and prevented loss of millions of dollars.
The technology also helps banks to act more quickly in response to potential scams, and alert customers about potential high-risk accounts before payments are made.
The technology also provides for data reporting so banks can analyse scam trends. It can help banks more proactively prevent scams and keep consumers informed of current scam risks.
New Zealand Banking Association chief executive Roger Beaumont says: “The fraud intelligence technology is another milestone for our banks in meeting their new scam prevention commitments that come into force at the end of the month. We have a prevention-led strategy to fighting scams, which aligns with global best practice.
“Banks were already sharing information with each other about mule accounts, but this new technology makes the process much faster. And speed is key when it comes to stopping scammers, who tend to move quickly.
“The new fraud intelligence technology joins Confirmation of Payee as another tech solution to help stop scammers. There is no single initiative to stop scams, which is why we are bringing in a range of things to help stop people authorising payments to criminals.
“Banks are investing millions of dollars each year to help stop scams, but they’re only part of the solution. Industries such as social media companies, global tech platforms, and telcos – where scams usually start – also have a big role to play in preventing scams and the harm they cause. Consumer vigilance is also important in helping to keep people safe.”
GetVerified has implemented the fraud intelligence technology, along with Confirmation of Payee. Confirmation of Payee went live in April this year and allows people to check that the account name matches the account number they are paying.
GetVerified is a company that was established by our retail banks to deliver cross-industry scam prevention solutions.
ENDS
“We support quality regulation that makes banking easier for New Zealanders,” said chief executive Roger Beaumont.
The Banking Association’s Beaumont said banks are committed to ensuring the availability of cash in New Zealand is reliable and efficient.
“We are disappointed in the Commerce Commission’s ‘finely balanced’ decision to not grant interim authorisation for banks and other cash-in-transit customers to collectively negotiate with Armourguard. Armourguard, owned by New York private equity firm Evergreen, is the monopoly provider of comprehensive cash-in-transit services.”
“To have cash-in-transit services that New Zealanders can rely on, we need to make sure prices are transparent and that the service is efficient. Armourguard’s proposal does not achieve this.”
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