A national awareness campaign has begun under the tagline “Check the name. Spot the scam.” to educate customers about this new technology known as “Confirmation of Payee.” Piloted in Australia, this renders vulnerability to scams in online transactions to less and nil. Australian banks do what our banks don’t or have found any impetus to do. 

Australian bank clients are well-protected against cyber attacks that invariably lead to identity theft, financial loss, or system compromise. How free from or vulnerable are we to hacking, ransomware, or data breaches through all sorts of fakery, look-alike websites and deceptive downloads? The “attack chain” alone involves deception, social engineering, malicious links, dubious login details that result in financial, even worse, borderless fraud. 

In our case, a victim who reports it to the bank is instead blamed for it, while the bank waives any responsibility. Are not banks bound to protect their clients whenever they make online transactions with what appears to be a legitimate entity but are otherwise victimized? 

In an overview, the new technology: a.) prevents losses by stopping money from going to scammers before a transaction is completed; b) increases confidence by giving more information to confirm one is paying the right person; and c) blocks fraudsters to make it harder for criminals to use stolen identities. 

There was this couple who vacationed in the Philippines but were scammed upon payment for hotel accommodations they did not make. Their Australian bank fully refunded the payment made plus retrieved the amount and had the scammer dealt with in accordance with Australian banking laws. 

This makes for a good piece of relevant legislation if it can be replicated in the Philippines. When hackers or scammers can use fake or someone else’s identity, it causes unimaginable financial losses on the part of the victim if the bank ignores its corporate social responsibility to protect clients against fraud and scams.  

The latest scam-fighting tech, aka “Confirmation of Payee,” is precisely a “name-matching service” designed to “protect customers from being tricked into sending money to criminals.” This alone entailed an investment of $100 million as a key initiative of the sector’s “Scam-Safe Accord,” a set of world-leading safeguards by banks to help keep the money of Australians safe. 

Can this corrupt government keep the money of Filipinos safe? The CoP is sure to reduce scams and mistaken payments by checking whether the name, BSB (bank-state-branch) and account number entered by a customer match the account details held by the receiving bank and showing the match result before payment is made. Does it not sound foolproof? 

The tech gives “customers greater control and confidence when making payments,” according to Adrian Lovney of the Australian Payments Plus (AP+), which developed the service.  

The simple concept truly adds “a powerful extra layer of protection for everyday transactions.”  Australia’s mutual banks are working hard to protect their customers’ money and banks elsewhere must follow suit. 

Greater trust and confidence, even convenience, benefit Australians with this service that matches information on the recipient bank. If the details match, the account name will be displayed for confirmation. If there’s merely a close match, the customer will see the account name and can confirm if it’s correct. 

For accounts with no match, the customer will be given a warning. The information provided will help the customer decide if they want to go ahead and make the payment, pause and check the details again, or stop the payment altogether and the account name won’t be shown to protect their privacy. 

In the end, protecting a customer from “transferring money straight into the hands of a scammer” becomes “a weapon that banks have at their disposal to better shield their clients from scams.” It’s high time to replicate the tech.