JOINT MEDIA RELEASE

BANKS AND BUILDING SOCIETIES AGREE THAT CUSTOMERS SHOULD PROTECT
AGAINST FRAUD, BUT DISAGREE CONSUMERS SHOULD CEASE INTERNET BANKING

Sydney, 16 March, 2005: Banks and building societies agree that customers should protect against fraud but strongly disagree with some commentators that consumers should cease Internet banking.

The Internet is an open environment which allows communication between computers of all types, all over the world.  Unfortunately, this openness also creates opportunities for fraudsters and other criminals.

All users of the Internet have a responsibility to protect themselves against online crime, in the same way that they lock their houses and wear seat belts in the car.

David Bell, Chief Executive of the Australian Bankers’ Association (ABA), said:

“The Internet is here to stay, many businesses run their enterprises online and it is a convenient way to find information, purchase goods and services and allow people to communicate with each other.”

“When you access the Internet through e-mail or the World Wide Web, it’s important that you safeguard your personal information.”
“Everyone who goes online has a responsibility to protect themselves against Internet crime, by installing and keeping up-to-date anti-virus and firewall protection on home computers. Never give out your PIN or password, delete spam e-mail and don’t access Internet banking from a link in an e-mail.”

“Only a very small proportion of Internet banking transactions have been compromised and the losses due to online fraud ($25 million) continue to be low compared with other types of fraud. Customers have been compensated for their losses when fraud investigations have shown they did not contribute to the fraud.”

“While every dollar lost to fraud is not good and even small losses can cause customers inconvenience and distress, the current level of Internet-banking losses certainly does not justify calls to close down Internet-based banking transactions.”
Banks and building societies use a combination of safeguards to protect your information such as employee training, strict privacy policies, rigorous security and encryption systems.

They also have strong security on their systems and processes to identify and act on fraud, and are constantly improving these security measures. They continually monitor their systems and work closely with State and Federal police to prosecute criminals.
Banks and building societies communicate with their customers regarding Internet security issues, often by publishing important information on their websites. Any customers who have any concerns should contact their financial institutions regarding options to minimise risk.

The Electronic Funds Transfer (EFT) Code offers the customer important protections. It is a code of practice which sets out rules about how electronic funds transfers should work. The Code sets out what the business must do, what your rights and responsibilities are and what happens if something goes wrong.

Banks and police are currently rolling out an information campaign to further educate bank customers on how to better protect themselves against online fraud.

Advertisements have been published in newspapers in all States and Territories encouraging consumers to seek free fact sheets with more information.

The fact sheets are available from the ABA website (www.bankers.asn.au), the Australian High Tech Crime Centre website (www.ahtcc.gov.au) and on various member bank websites. To obtain hard copies of the fact sheets, telephone the ABA: 1800 009 180 (free call) and copies will be posted to you.


For further information:

Heather Wellard
ABA Public Relations 
Phone: 02 8298 0411
Mobile: 0409 830 439

Raj Venga
AAPBS
Phone: 02 9221 2711


ENDS