Banks want telecommunication companies and social media platforms to share the surging cost of scams but warn too much focus on victim compensation will “create a honeypot for organised crime”.
Paul Jevtovic, chief of financial crime risk at National Australia Bank, said the government’s planned industry codes should allocate the growing cost of scams – estimated to be $4 billion this year – between banks, technology giants and telecommunications companies. But he also urged customers to take more responsibility for sending money to dodgy sources and for authorities to target the criminal groups creating the problems.
ANZ chief information security officer Lynwen Connick said hundreds of criminals are creating fake versions of the ANZ website to trick customers into sending money. Oscar Colman
“At some point, there will be a level of understanding about how we are all accountable within the ecosystem, and it is inevitable that will translate, where appropriate, to how victims will be compensated,” he told The Australian Financial Review Cyber Summit.
However, the former AUSTRAC CEO, who joined NAB in 2021, added too much focus on compensation could end up forcing overall losses higher. “I would hate the focus to become one of compensation because, if you think about it, that just creates a honeypot for organised crime,” he said.
A better solution was fighting the “root cause” of criminal activity, which often emanated from sophisticated criminal groups or nation states.
“This is not new,” he said. “We took the fight against the proliferation of drugs in this country to its source by working together and internationally with other players.”
Financial institutions also urged the federal government to push through effortsRead more on afr.com