--- url: 'https://www.corbado.com/blog/australia-scam-safe-accord' title: 'Australia’s Scam Safe Accord' description: 'Learn about Australia’s Scam Safe Accord as banks unite to fight fraud with advanced KYC, biometrics, and enhanced anti-scam strategies for safer online banking' lang: 'en' author: 'Alex' date: '2025-01-10T17:45:01.335Z' lastModified: '2026-03-27T07:01:06.709Z' keywords: 'scam safe accord' category: 'Authentication' --- # Australia’s Scam Safe Accord ## Key Facts - The **Scam Safe Accord**, introduced November 2023 by the ABA and COBA, mandates six anti-fraud initiatives across all participating Australian financial institutions. - Australian bank customers lost AUD 3.1 billion to scams in 2022, an **80% increase** from the prior year, driving the need for a unified industry response. - The accord's six initiatives include **Confirmation of Payee** rollout from 2024-2025, biometric checks for new accounts, payment delays, intelligence sharing and high-risk channel limits. - Three in four Australians preferred **facial biometric** verification for authentication in 2021, supporting the accord's mandatory biometric KYC requirement for new online bank accounts. ## 1. Introduction Australia’s [banking](https://www.corbado.com/passkeys-for-banking) industry is evolving as financial institutions and regulators team up to combat a growing amount of scams and fraud. The introduced **Scam Safe Accord**, backed by the [Australian Banking Association (ABA)](https://www.ausbanking.org.au/) and the [Customer Owned Banking Association (COBA)](https:/www.customerownedbanking.asn.au), is set to redefine security standards. At its core, the accord emphasizes [biometric authentication](https://www.corbado.com/blog/passkeys-biometric-authentication) and stronger Know-Your-Customer (KYC) measures to protect customers. In this blog, we’ll answer the following questions: - Why are Australian banks collaborating for fraud prevention? - What are the current trends in financial cyber security? - What are the Scam Safe Accord’s six main initiatives? - What’s the current state of implementation of the scam safe report? We’ll also show how modern authentication solutions - like those offered by Corbado - can help banks fulfill the accord’s requirements and stay one step ahead of increasingly sophisticated scammers. ## 2. Why Australia Demanded a Unified Scam Response Let’s start by first looking for the underlying reasons why Australia came up with the Scam Safe Accord in the first place. ### 2.1 Rapid Adoption of Mobile and Biometric Technologies Not only in Australia but all around the world the high rate of smartphone adoption and digital engagement has led to a boom in mobile transactions. As a result, everyday financial activities - from paying bills to transferring funds - have migrated online. In parallel, biometric methods for [identity verification](https://www.corbado.com/blog/digital-identity-guide) and authentication, such as face and fingerprint recognition, have seen wide acceptance (especially since Apple introduced Touch ID in 2013. In late 2021, research showed that [three in four Australians preferred using facial biometrics for authentication](https://www.gbgplc.com/apac/news/australians-prefer-using-facial-biometric-verification/), underscoring the public’s openness to advanced security features, which are also more convenient than other authentication methods, such as TOTPs. ### 2.2 Escalating Financial Scams While technology has made life simpler, it has also opened the door for sophisticated scams. [During 2022, Australian bank customers lost a record $3.1 billion to fraudulent schemes](https://www.accc.gov.au/media-release/accc-calls-for-united-front-as-scammers-steal-over-3bn-from-australians) - a staggering **80% increase** compared to the previous year. These schemes typically rely on social engineering tactics, such as impersonating trusted entities or tricking victims through [phishing](https://www.corbado.com/glossary/phishing) and remote access. Notably, the most common [payment](https://www.corbado.com/passkeys-for-payment) channel exploited is traditional bank transfers, accounting for about **13,000 reported incidents** and **over $200 million** in losses in 2022 alone. Moreover, there have been numerous data breaches in Australia in recent years, such as the one at [Medibank](https://www.corbado.com/blog/medibank-data-breach). ### 2.3 A Growing Call for Collaboration The alarming rise in scam-related losses could no longer be brushed off. Authorities, banks, and consumer advocacy groups all recognized the need for an industry-wide strategy. As Stephen Jones, Australia’s Assistant Treasurer and Minister for [Financial Services](https://www.corbado.com/passkeys-for-banking), remarked: _“Australians finally have a government that is fighting back against scams after being left to fend for themselves for years.”_ This sentiment underscores the collaborative spirit driving the Scam Safe Accord. The Australian [Government](https://www.corbado.com/passkeys-for-public-sector) also acknowledges this problem and wants to target it head on: The vision is to be the leading cyber security nation until 2030. In order to do so the [government](https://www.corbado.com/passkeys-for-public-sector) keeps releasing regulations that benefit the security landscape (e.g. [Cyber Security Bill](https://www.corbado.com/blog/cyber-security-bill-australia) 2024, Essential Eight Framework, FSC Standard No. 29) ## 3. Introducing the Scam Safe Accord Introduced in November 2023 by the ABA and COBA, the **Scam Safe Accord** sets out clear, stringent guidelines to be adopted by all participating financial institutions - ranging from major commercial banks to credit unions, building societies, and mutual banks. The Accord is built around **six key initiatives**, each addressing a different weak point in current anti-scam efforts. By establishing a unified response, the accord aims to push back against social engineering, [phishing](https://www.corbado.com/glossary/phishing), and other methods criminals use to dupe unsuspecting victims. Let’s analyze these six key initiatives in the following. ## 4. Understanding the 6 Initiatives of the Scam Safe Accord Each of the Accord’s six components serves to protect Australia’s [banking](https://www.corbado.com/passkeys-for-banking) ecosystem against scam threats. Here’s how these initiatives reshape the industry: ### 4.1 Industry-Wide Confirmation of Payee - **What It Is**: A system that compares the payee’s name and account details before a transfer is completed. - **Why It Matters**: Customers can verify they’re sending funds to the intended individual or business, reducing mistaken or fraudulent transfers. Rollout is scheduled between 2024 and 2025, as banks coordinate technology development and interoperability. ### 4.2 Prevent Identity Fraud - **What It Is**: Until the end of 2024, major banks implemented biometric checks (facial, fingerprint, or behavioral analytics) for new accounts opened online. - **Why It Matters**: Strengthening the onboarding process helps ensure that fraudsters cannot assume stolen identities to open bank accounts. These measures align with [KYC](https://www.corbado.com/blog/iso-18013-7-mdl-bank-kyc-onboarding) requirements, reinforcing the broader push toward rigorous [identity verification](https://www.corbado.com/blog/digital-identity-guide). ### 4.3 Enhanced Warnings and Payment Delays - **What It Is**: Whenever customers add new payees or request higher transaction limits, banks will issue warnings, ask clarifying questions, and may delay transfers. - **Why It Matters**: This creates a safeguard against impulsive or fraudulent transactions. It also grants banks time to flag suspicious activity. ### 4.4 Expanded Intelligence Sharing - **What It Is**: All ABA and COBA members joined the Australian Financial Crimes Exchange (AFCX) and will join the Fraud Reporting Exchange (FRX) until the end of 2025 where they share real-time or near real-time reporting, analysis, and dissemination data of financial crime - **Why It Matters**: Sharing real-time scam data across all financial institutions allows for quicker identification of fraud patterns and faster recovery of stolen funds. This community-based approach helps banks work together, rather than in isolation, to dismantle scam networks. ### 4.5 Limiting Payments to High-Risk Channels - **What It Is**: Banks will make risk-based decisions to prohibit or curb transfers through suspicious channels - particularly certain cryptocurrency platforms used for money laundering. - **Why It Matters**: Once scammers move money into high-risk channels, it becomes very hard to trace and recover. Blocking these channels can strongly discourage fraud. Customers may face additional scrutiny or limitations when transacting through channels with elevated scam risks. ### 4.6 Implementation of an Anti-Scam Strategy - **What It Is**: A formalized plan that each Australian bank must adopt to boost oversight, detection, and response protocols for scam-related activities. - **Why It Matters**: Ensures every financial institution meets consistent anti-fraud standards, fostering industry-wide accountability. ## 5. Why the Scam Safe Accord Matters The accord symbolizes a **shared commitment** among banks to prioritize consumer protection. For years, Australian bank customers bore the burden of guarding themselves against increasingly cunning scams. Customers also shared problems with [phishing](https://www.corbado.com/glossary/phishing) and impersonation scams on socials on a daily basis. Now, with clearly defined measures, mandatory intelligence sharing, and advanced verification, the financial sector is taking a unified stand against fraudsters. Moreover, the accord underscores Australia’s position as a global leader in adopting digital solutions and becoming the Top 1 cyber security nation. ## 6. Status of the Scam Safe Accord at the Biggest Australian Banks ### 6.1 National Australia Bank (NAB) NAB highlights its commitment to fighting scams through ongoing investments and initiatives, including a new confirmation of payee system and measures like removing links from text messages and introducing [payment](https://www.corbado.com/passkeys-for-payment) alerts. From 2022-2024, these efforts have helped prevent or [recover over $200 million in scam losses](https://news.nab.com.au/news/nab-welcomes-aba-scam-safe-accord). NAB stresses the need for a coordinated national response to further protect Australians. ### 6.2 Commonwealth Bank (CBA) CBA is enhancing anti-scam efforts by expanding its **NameCheck** technology to other banks, helping prevent millions in scam-related losses. It has also partnered with [Telstra](https://www.corbado.com/blog/telstra-passkeys) to roll out **Scam Indicator** technology to detect phone scams and introduced **CallerCheck** for in-app caller verification. Additionally, CBA has [implemented payment controls](https://www.commbank.com.au/articles/newsroom/2023/11/commbank-welcomes-new-scam-safe-accord.html) on cryptocurrency exchanges, including holds, declines, and limits. ### 6.3 Westpac Westpac highlighted [key updates on the Scam-Safe Accord](https://www.brokerdaily.au/technology/19286-westpac-gives-update-on-scam-safe-accord), including biometric checks for [secure onboarding](https://www.corbado.com/blog/mobile-drivers-license), a $100 million investment in a Confirmation of Payee (CoP) system to verify [payment](https://www.corbado.com/passkeys-for-payment) recipients, and expanded intelligence-sharing across banks. With Australians losing $2.74 billion to scams in 2023, these measures, rolling out through 2025, aim to block fraud at critical points and adapt to evolving scam tactics. ### 6.4 Australia and New Zealand Banking Group (ANZ) ANZ also partners in this initiative, however specific actions are not publicly available. There's only a [general scams and fraud page](https://www.anz.com.au/bluenotes/topics/scams/) on their website. ## 7. How Corbado Can Support Australian Banks Due to the push to meet the Scam Safe Accord’s guidelines, banks and financial organizations will be looking for comprehensive, modern authentication solutions. **Corbado** offers an advanced approach in the authentication space with phishing-resistant passkeys developed by the [FIDO Alliance](https://www.corbado.com/glossary/fido-alliance): ### 7.1 Phishing-Resistant MFA for Banking Customers Passkeys are inherently resistant to [phishing attacks](https://www.corbado.com/blog/3ds-authentication-failed). Unlike traditional passwords, passkeys are domain-specific and can only be used on the legitimate websites or apps they were created for. This means that even if a user is tricked into visiting a malicious website, their passkey cannot be used to authenticate on that site, significantly reducing the risk of credential theft and scams through phishing attempts. ### 7.2 Enhanced Protection Against Data Breaches Since passkeys use public-key cryptography, only the public key is stored on the server. Even if a server is compromised, the stolen public keys are useless without the corresponding private keys, which remain securely stored on the user's device (in the hardware security module). ### 7.3 Elimination of Password-Related Vulnerabilities: Passkeys eliminate the risks associated with weak or reused passwords, as each passkey is unique, complex, and automatically generated. This prevents [credential stuffing](https://www.corbado.com/glossary/credential-stuffing) attacks and removes the [vulnerability](https://www.corbado.com/glossary/vulnerability) of using the same password across multiple accounts. ## 8. Conclusion Australia’s Scam Safe Accord marks a monumental step forward in combating fraud and safeguarding online transactions. With the start into 2025, banks across the country will be expected to implement new systems, strengthen identity checks, and foster information sharing like never before. Although the scale of these changes may seem daunting, they present a valuable opportunity for financial institutions to bolster customer trust and outpace cybercriminals. For banks seeking to stay ahead of the curve, security solutions like **Corbado’s passkey solution for large-scale applications** can prove invaluable. Not only does this technology simplify compliance with the accord’s stringent demands, but it also ushers in a higher standard of digital safety - one that Australian consumers have long deserved. ## Frequently Asked Questions ### How does intelligence sharing between Australian banks work under the Scam Safe Accord? All ABA and COBA member banks joined the Australian Financial Crimes Exchange (AFCX) and must join the Fraud Reporting Exchange (FRX) by end of 2025. These platforms enable real-time or near real-time sharing of financial crime data, allowing banks to identify fraud patterns faster and recover stolen funds more quickly. ### What specific actions has Commonwealth Bank taken to comply with the Scam Safe Accord? Commonwealth Bank expanded its NameCheck technology to other banks to prevent scam-related losses, partnered with Telstra to deploy Scam Indicator technology for detecting phone scams, and introduced CallerCheck for in-app caller verification. It also implemented payment controls on cryptocurrency exchanges including transaction holds, declines and limits. ### What triggered the creation of Australia's Scam Safe Accord in 2023? Bank transfers alone accounted for approximately 13,000 reported scam incidents and over AUD 200 million in losses in 2022. The Australian Banking Association and Customer Owned Banking Association introduced the accord in November 2023 as a formalized industry-wide response to escalating fraud losses that could no longer be addressed in isolation. ### How does the Scam Safe Accord restrict cryptocurrency-related fraud in Australia? The accord requires banks to make risk-based decisions to prohibit or limit transfers through high-risk channels, particularly cryptocurrency platforms used for money laundering. Once scam funds enter these channels they become very difficult to trace and recover, so blocking them at the transfer stage is a core fraud deterrent under the accord. ### How much has Westpac invested in Scam Safe Accord compliance and what does it cover? Westpac committed AUD 100 million specifically to build a Confirmation of Payee system that verifies payment recipients before transfers complete. Westpac also introduced biometric checks for secure customer onboarding and expanded intelligence sharing across banks, with these measures rolling out through 2025 in response to Australians losing AUD 2.74 billion to scams in 2023.