This report is the analysis of an Australian Securities and Investments Commission (ASIC) review of the current scam related activities of the four major Australian banks.

Scams are increasing in volume and sophistication, causing significant financial and other harm to Australian consumers, including the most vulnerable people in our community.

Between 1 July 2021 and 30 June 2022, more than 31,700 customers of the four major banks collectively lost more than $558 million through scams. This was an increase of 49% in customers and 50% in financial losses compared to the previous 12-month period. During the same period, banks paid approximately $21 million in reimbursement and/or compensation payments to customers who fell victim to a scam.

Banks have a critical role as part of a broader industry ecosystem that includes financial institutions, telecommunications providers, social media platforms and digital platforms, among others, in helping to minimise the impact of scams on the Australian community by:

• preventing and disrupting scammers from misusing banking services to carry out and financially benefit from scams, and
• supporting customers by having effective scam prevention, detection and response activities.

Recognising the important role of banks in scam prevention, detection and response, ASIC conducted a review of the four major banks’ activities in these areas. The review focused on the major banks with the expectation that they should have the most mature and effective policies, processes and practices in relation to scams.

From ASIC’s findings about existing and emerging bank practices, this report provides observations for all banks to consider to minimise the impact of scams on their customers.