The banking sector remains committed to protecting customers’ financial information and bank customers are protected from loss in genuine fraud cases.

Banks also work closely with State and Federal Police to assist in the investigations leading to the prosecutions of criminals who misuse anyone’s personal financial information to commit crimes.

Australia’s major banks and the Australian Federal Police (AFP) continue to work together via the Joint Banking and Financial Sector Investigation Team which consists of bank staff seconded to the AFP to assist police investigate cybercrime.
Formed in May 2004, this team was the first public/private sector partnership of its type in Australia.

Steven Münchenberg, Chief Executive Officer of the ABA, said: “We trust banks to keep our savings safe, provide finance when we need it and not to leave us out of pocket if we become unwitting victims of fraud.”

“So it’s important to understand that banks are always working to improve security enhancements to protect customers. But there are also some steps people can take to make the criminal's job harder and to help spare people the inconvenience of becoming a victim of criminal or fraudulent activity.”

“Smart and safe Internet use can minimise customers’ exposure to becoming victims of crime.”

“Beware of hoax e-mails purporting to be from your bank, asking for you to update your personal information such as PINs and Internet banking logon details. This information should remain confidential. Your bank will never e-mail you to ask you for this confidential information.”

Mr Münchenberg said recent security enhancements have included advances in monitoring customer and transaction patterns to provide intelligence on criminals and their activities, advances in the encryption of customer data, use of on-screen keypads - designed to prevent the incidence of keystroke logging fraud, use of security tokens and SMS alerts to telephones.

Recently, there have been some incidences of criminals skimming accounts.  Often, it is the bank which detects suspicious activity, or it is contacted by its customer who has noticed an unauthorised transaction. The bank takes immediate action to protect the customer’s account – preventing further transactions and beginning an investigation. 

Account holders are not liable for losses resulting from unauthorised transactions where it is clear that the user has not contributed to the loss. There is usually an investigation by the bank to determine how the fraud has occurred.

Tips to protect your financial identity

1. Don’t provide your PIN or Internet banking logon or password to anyone;
2. Always be careful to shield your PIN when using an ATM or EFTPOS terminal. Use a free hand to cover the key pad while you enter your PIN;
3. Delete spam and scam e-mail – if the offer sounds too good to be true – it probably is;
4. Keep your anti-virus and firewall software up-to-date;
5. Always logon to Internet banking by typing in your bank’s full web address, i.e. the URL;
6. Don’t use public computers for Internet banking e.g. Internet cafes, libraries or hotels;
7. Guard the following identity information carefully and only provide to trusted people and entities: date of birth, current address, driver’s licence number and passport details.

More information

The ABA, Australian Securities and Investments Commission (ASIC) and the AFP have worked together to produce a website called ‘Protect Your Financial Identity’ – www.protectfinancialid.org.au. It provides tips on how you can avoid becoming a victim.

Customers can also find information on the Federal Government’s website – Stay Smart Online – www.staysmartonline.gov.au for more tips on how to protect yourself and your information online.