Press release: Scams – are Aussie banks doing enough?

Scams – are Aussie banks doing enough?

Sydney, 22 August 2023 – Embargoed until 00:01 AM AEST on 22 August 2023

Recent findings from insights provider RFI Global sheds light on the growing concerns of Australians regarding banking fraud. While banks remain trusted entities, the question arises: Are they doing enough?

• Many Aussies have (or know someone who has) been victims of banking fraud.
• Banks are highly trusted – most customers have confidence their bank will protect them.
• But customers think banks can do more and expect investment in improving security features.
• Financial institutions need to consider how to give customers confidence without compromising on a frictionless banking experience.

The Current Landscape:
• 1 in 5 Australians have fallen victim to banking fraud.
• 1 in 4 Australians know someone affected by it.

Latest research from RFI Global shows older Australians are particularly vulnerable, with 63% receiving suspicious communications from scammers impersonating government institutions like mygov.com.au and the ATO.

The primary concerns of Australians include being hacked and identity theft, followed closely by card details theft and having all critical security and login credentials stolen.

But who will (and who should) protect me?

RFI research has found a recent uplift in expectations of financial institutions when it comes to managing these increasing fraudulent incidents.

Although banks enjoy a highly trusted position among their customers, trust can be easily lost; RFI uses the example of telco’s sharp and steep decline, following the much-publicized data breaches at the end of 2022, as an example of how quickly sentiment can shift.

Educate and communicatesentiment index update

RFI research shows that although consumers have confidence their bank will support them in a fraudulent incident should it occur – they also believe banks could do more when it comes to educating customers in advance to avoid the situation altogether.

While 78% believe their bank’s security measures are adequate and 66% trust their bank to protect them, a significant 75% feel banks should do more in educating customers about fraud prevention.

Digital Banking: The Double-Edged Sword:

• While perceptions of security and safety influence how a consumer chooses to bank, digital banking continues to grow.
• 3 out of 4 Australians use digital banking weekly, with mobile banking gaining prominence.
• However, in a fraud incident customers want interactions to be with a real person – with call centre playing a critical role when a customer is the victim of fraud.

Recommendations

RFI research shows that customers increasingly expect their Financial Institutions (FIs) to invest in improving security features. But, it’s crucial to balance security with user experience. The ultimate reassurance for customers? A guarantee of recovering their money after fraudulent activities.

RFI has identified scope for FIs to add additional layers of security. However, this must be weighed up against user experience. There are many ways to reassure customers around fraud for digital banking – nothing trumps Guarantee that you’ll recover your money, in the long run!

Challenge is on for the banks

With increasing fraud and scams against Australians, it seems the challenge is for the Aussie banks to protect their customers from fraud and invest in improving security features… all the while balancing these necessary considerations without compromising on experience