Locking out scammers

Empowering customers to instantly “lockdown” accounts if they fear they have been breached is the kind of innovation that will seriously disrupt the work of cybercriminals.

“Technology can empower people to take control of their own lives. I’ve seen it throughout my career, it makes me steadfast in my resolve as a tech-optimist.”

Which is why from the middle of this year ANZ is introducing a Digital Padlock feature. This means with a few clicks, customers can immediately disable access and stop unauthorised activity on accounts - including credit and debit cards - and notify the ANZ fraud monitoring system, Falcon, of any suspicious activity.

It is a global best practice and, we believe, an Australian first.

We saw how the Singaporean Government mandated their banks introduce technology, including “emergency self-service” digital Killswitch.

We looked closely, talked to those involved and saw its impact. The move inspired what we are doing at ANZ today.

Empowering people

So why would tools like Digital Padlock be so effective in undermining the scammers business model?

Firstly, technology can empower people to take control of their own lives. I’ve seen it throughout my career, it makes me steadfast in my resolve as a tech-optimist.

Through the emergence of online banking and smart devices – we have seen the flow of capital around the world freed up and has driven greater trade and entrepreneurialism.

Fraudsters want as much of this increased flow of money as possible. Their method of trying to get it is by disempowering people and undermining confidence in new technology.

Cybercriminals rely on inertia and confusion by account holders, and this solution is the opposite of that.

Scammers are adapting

Let’s define the problem we are confronting in simple terms.

Scams come in different shapes and sizes depending on what primal emotion the fraudsters are targeting to disempower people’s decision making.

Some scams play the “long game” and use sophisticated social engineering models over a considerable period of time to convince victims to part with their personal and security information, data or in many cases their hard-earned savings.

Other scams rely on speed and try to panic victims into making hasty decisions. They place time pressure on their victims – they must transfer funds to another account to “keep them safe” or re-confirm their security information to “secure their accounts”. Pressure can stop people making good decisions in the moment – they feel hurried or the call has caught them while they’re busy doing something else.

The Australian Competition and Consumer Commission’s (ACCC) Scamwatch data shows the most common type of scam reported in terms of numbers is phishing – where customers are tricked into clicking on a link in an email or SMS communication. More than 108,000 cases of phishing were reported last year.

What scammers hate

While no one can deny online scammers are a genuine scourge, we cannot hide away from the problem and undo the digital revolution which has benefited so many people.

People do not want to lose the freedom and liberation offered by the emergence of smartphones and internet finance. ANZ’s Padlock is a solution that works with how people bank now.

We can order dinner when we are on the train home from work. Business owners can order new stock from anywhere in the world. You can book a flight while being driven to the airport.

In just a few clicks the ANZ Digital Padlock will give customers greater control over the security of their accounts as they go about these transactions. 

This is especially useful when customers have come under pressure from scammers to provide personal or account information and soon after suspect they have been scammed. 

Empowering customers to take action makes things harder for the scammers.

The big picture

But there is more than one way to put power back into the hands of customers.

To add to the padlock innovation, we have established a team of ANZ First Responders who provide greater frontline assistance for those who have been targeted.

It is not just about having the best technology but also the right people in place to help. Working with our larger Scams Assist and Customer Protection teams the First Responders team is now supported by 65 people and is expected to grow over the next 12 months.

Insights to help you

The ANZ Digital Padlock will be integrated into our existing fraud detection systems, which aim to provide insights to detect and prevent scams and fraud.

For example, it may help identify customers who are more susceptible to scams than others – including older Australians. Scamwatch data showed people over the age of 65 were the only cohort to report higher losses last year compared to 2022.

Some cases will continue to require a more integrated intervention approach involving our customer protection teams – including the new ANZ First Responders - who work with customers in these complex cases to untangle the strands of their involvement with the fraudsters.

This is what we are here for.

The job of a modern financial institution is to allow you to feel confident banking wherever and whenever you want – and no scammer should get in the way of that.

Maile Carnegie is Group Executive Australia Retail at ANZ.