One of Australia’s Big Four banks announced efforts to tackle crypto fraud activities aimed at reducing losses from scams.
One of the largest banks in Australia, Westpac, is starting its first test of scam protection tools to combat fraudulent operations involving cryptocurrency. The regulations are intended to reduce losses and potential hazards brought on by scammers.
About fifty percent of all client losses attributable to scams are caused by investment scams, with roughly one-third of these scams involving direct transfers to cryptocurrency exchanges. The complexity of tracing such transfers makes it more difficult to stop fraudulent activity.
Customers of Binance were advised that they could no longer utilize PayID to add Australian dollars to their accounts at the same time that Westpac made its announcement. Binance reported limitations imposed by a third-party provider that briefly prevented bank transfer withdrawals.
While acknowledging the usefulness of digital exchanges, Scott Collary, group executive of customer services and technology at Westpac, emphasized that the rise of digital currencies has increased the number of con artists preying on foreign exchanges.
These initiatives by Westpac are a reflection of how traditional banking institutions are beginning to understand the need of addressing cryptocurrency-related dangers and frauds as well as the supervision and security difficulties provided by global exchanges.
According to the consumer advocacy group Choice, Australians have lost more than $129 million as a result of bitcoin frauds. The Australian Consumer and Competition Commission alone received more than 12,000 allegations about these scams in 2021.
Warning flags for cryptocurrency investment scams include false social media adverts, phony websites, fake documents, and the use of spoofing software.