Australia outperforming global peers in scam prevention

Scam losses in Australia have declined in the past year, according to a report by BDO commissioned by Westpac, outperforming the UK, US and Canada which all saw losses continue to rise. 

Losses were down by 52 per cent in the six months to June 30, 2024 compared with the prior comparable period, with the improvement driven by an increased focus from banks and government on implementing preventative measures, the report found. They include a Scam-Safe Accord introduced in 2023 to promote collaboration between Australia’s biggest banks on scam prevention. 

“This indicates that Australia's approach to scam prevention is gaining traction,” The report’s authors said in a media release. “While this is a positive sign, it also underscores the need for continued vigilance and adaptation of our anti-scam strategies.”

The UK’s scam losses per capita ($30.28) were almost double those of Australia ($17.69) in 2023, according to BDO’s research, which is based on publicly available information across the four countries. 

The UK’s Contingent Reimbursement Model, introduced in 2019, which mandates reimbursements for certain type of scams, has coincided with a sharp increase in reported scams but has had “minimal impact” on actual losses incurred by individuals, BDO analysts’ found. 

Scammers’ tactics for targeting both organisations and individuals differ widely across jurisdictions. In Australia, telecommunications remain the primary method, although email scams are on the rise, while online scams dominate in the UK. 

Investment scams were by far the biggest source of monetary loss in Australia, while remote access scams were the most reported and had the biggest financial impact in the UK. 

“This divergence highlights the need for tailored scam prevention strategies suited to local contexts,” the report said. 

Westpac customer and corporate services group executive Carolyn McCann said BDO's analysis showed how a combined focus from the banking sector was key to stopping the financial crime. 

“To maintain this momentum and ensure Australians are protected, we need to make our country the hardest place for scammers to operate in,” McCann said. “This can only be achieved if all players in the ecosystem step up and do their part.” 

McCann urged digital platforms to take tougher action on scam prevention. “More than half of all scams are originating on these platforms and they need to be stopped,” she said. 

Westpac has invested over $100 million in scam prevention measures in the past two years, saving customers over $400 million from being lost to scammers. 

Key initiatives include Westpac SaferPay and Westpac Verify features in the banking app, and blocks on payments to certain digital currency exchanges to offer customers greater protection from investment scams.