AUSTRALIAN BANKERS' ASSOCIATION FORMS HIGH LEVEL TASKFORCE TO COMBAT FRAUD
Sydney, 10 December, 2002: The Australian Bankers’ Association is very concerned about the impact of fraud on bank customers and the community and has set up a new high level Taskforce to tackle this complex criminal behaviour.
David Bell, Chief Executive of the Australian Bankers’ Association (ABA), said: “Fraud has serious consequences for all Australians, particularly those victims whose trust has been betrayed.”
“Fraud prevention has always been a priority for the banking industry and Australian banks continue to be very aggressive and progressive in managing operational risks.”
“ABA member banks make substantial investments each year in the latest fraud detection and prevention technology, and constantly review security tactics in an effort to stay ahead of the criminals.”
“The ABA has set up the Fraud Taskforce because a national approach is needed on these new and emerging fraud issues such as ATM skimming, credit card skimming and Internet banking fraud. The Taskforce will ensure, that at an industry level, key priorities are identified and solutions agreed for the next twelve months.”
The taskforce will build on work already underway within ABA member banks and through membership of fraud groups within the ABA, Australian Payments Clearing Association (APCA) and the Australian Transaction Reports and Analysis Centre (AUSTRAC).
Mr Bell said: “Wider Fraud Taskforce membership - not just banks - will be encouraged to foster a team effort against this criminal activity and to increase cooperation between all sectors, as fraud impacts private and public institutions, not just banks and their customers.”
The ABA’s Fraud Taskforce will have three objectives:
1. Identifying the areas of highest risk, and the most important emerging threats;
2. Reviewing and analysing prevention and detection measures in use in Australia and internationally. This will be done in partnership with law enforcement agencies and using the highly skilled fraud investigation teams in the banks;
3. Determining the most appropriate solutions for the identified threats and developing an industry response plan.
Membership of this taskforce will be the Heads of the Fraud and Security Teams of the ABA member banks. Then there are plans to invite participation from other key groups such as government sector representatives, private sector, police and card schemes, such as Visa and MasterCard.
Mr Bell said: “It is important to remember that if a bank customer is the victim of outright fraud, they will not be left out of pocket as a result of an incident because the bank will take responsibility for these losses and refund the customer.”
“The priority for the Fraud Taskforce is to discuss workable solutions which benefit bank customers and hopefully lead to criminal convictions for fraudulent offences.”
“Banks already work closely with law enforcement agencies across all states but it is hoped having a wider membership of the Taskforce will lead to a sharing of information on how others tackle and prevent fraud.”
In addition, new international rules to deal with operational risks are being introduced as part of new global benchmarks, which the Basel Committee of the Bank of International Settlements will enforce.
Australian banks are fairly advanced in ensuring they will meet these new standards and the Fraud Taskforce aims to position Australian banks as global leaders in the way they manage operational risk.
For further information:
Heather Wellard
ABA PR
Phone: 02 8298 0411
Mobile: 0409 830 439
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