Over the last nine months banks have used their new Fraud Intelligence Exchange (FIX) to recover around $10 million in stolen funds for scam victims.

FIX also identified nearly 5000 money mule accounts, which are domestic bank accounts used by scammers to transfer stolen funds, either knowingly or unknowingly by the account owner. Mule accounts are often used to send money overseas where it’s almost impossible to get it back. The new technology means banks can more quickly identify and share information about mule accounts, and freeze funds before they’re moved.

New Zealand Banking Association chief executive Roger Beaumont says: “It’s great to see this tech having a tangible impact in a relatively short time. The $10 million recovered from scammers is $10 million that might otherwise have been stolen from everyday New Zealanders, causing a great deal of emotional and financial harm.

“It’s worth noting that the $10 million only relates to FIX, which is just one tool banks use to help recover customer scam losses.

“Scams are becoming more sophisticated, which is why banks are investing millions each year to help protect their customers from losing money to these criminals.”

New Zealand’s retail banks made five new scam prevention commitments that went live in an update to the Code of Banking Practice last November. Those commitments provide:

  • Pre-transaction warnings to customers for certain payments
  • A Confirmation of Payee service for customers to check that the name of the person they are paying matches the account number
  • Identification of and response to high-risk transactions or unusual account transaction activity, and the ability to delay or block transactions in some cases
  • Providing a 24/7 reporting channel for customers who think they’ve been scammed, and responding to protect accounts
  • Sharing scammer account information with other banks to help prevent criminal activity, and freezing funds where appropriate. This is known as FIX.

“Our scam prevention initiatives are only part of the solution. Social media companies and global tech platforms, where scams usually start, also have a big role to play in preventing scams and the harm they cause,” adds Beaumont.

The data points were provided by GetVerified Ltd, which delivers both FIX and the new confirmation of payee service. GetVerified is a not-for-profit anti-scam solutions provider.

ENDS