The Customer Owned Banking Association (COBA) has acknowledged the release of draft industry codes for the Scams Prevention Framework (SPF), and will work constructively with government and industry to ensure it delivers practical and effective scam prevention outcomes for consumers.
“Scams have devastating impacts on individuals and communities. It is critical that the new framework focuses on disrupting scam networks and stopping fraudulent transactions before they traumatise Australians,” COBA CEO Michael Lawrence said.
“The framework should remain focused on preventing scams in the first place, while making Australia a less attractive target for criminal networks.”
COBA will review the draft industry codes and rules released today in detail, with a focus on ensuring they deliver effective, consistent obligations across sectors and reduce gaps that scammers exploit.
“Scams don’t start at the bank – they begin with a phishing email, a malicious link in a text, or a fraudster stealing your personal details. Closing gaps in protection between sectors – particularly where scams originate – will be central to the framework’s effectiveness,” Mr Lawrence said.
“We also need to avoid creating new avenues for scammers to prey on Australians. Any automatic processes need to be carefully calibrated to avoid the potential for exploitation by criminal networks and should be linked to code breaches by regulated entities.”
Data from the customer-owned banking sector indicates that 97 per cent of losses from scams are for higher-value incidents over $1,000. This is where prevention becomes key.
The Government’s decision to extend the implementation timeline for the SPF underscores the importance of careful development to ensure it is well designed and effective in practice.
The banking industry has long led the charge against financial crime, with COBA and the Australian Banking Association joining forces in 2023 to launch the Scam-Safe Accord. Through this proactive initiative, banks have strengthened their defences by introducing world-leading safeguards to protect Australians from fraud.
This includes a $100-million investment in enhanced data sharing across the sector; introducing warnings and payment delays to protect customer transfers; and the introduction of Confirmation of Payee technology in 2025, which helps customers confirm the account name, BSB and account number match the details held by the recipient bank before hitting ‘send’ on a transfer.
A recent COBA survey of more than 1,000 Australians shows this proactive defence is resonating with consumers. Nearly 80% feel a sense of confidence that their bank can successfully stop a fraudulent transaction, and a quarter of respondents reported they are highly confident.
However, the threat of scams remains real, with nearly nine in ten Australians reporting that they frequently encounter such fraudulent activity. Specifically, 42% of consumers experience their most frequent scam attempts via phone calls or SMS, 35% see them through phishing emails, and 10% encounter them on social media.
ENDS
For further information or to arrange interviews, please contact media@coba.asn.au.
The Customer Owned Banking Association is the industry body for mutual banks, credit unions and building societies. For almost 180 years our sector has put customers first, returning profits to more than 5 million Australians who put their trust in customer-owned banks.