NAB unveils enhanced payment alert technology

NAB has broadened its suspicious payment alert system to tackle invoice scams, in response to Australians’ willingness to share more personal and banking information to strengthen their defenses against fraudulent activities.

Recent NAB revealed a growing vigilance among Australians against scams, with 70% ignoring suspicious calls and emails. Nearly as many Australians are refraining from clicking on links in texts and emails and deleting bogus text messages.

Chris Sheehan (pictured above), NAB executive of group investigations, acknowledged the positive trend but stressed the continuous need for action to curb scam-related crimes.

NAB measures reduce losses, prevent fraud

Since its introduction in March 2023, NAB’s payment alert system in digital banking has led customers to abandon an average of $240,000 in payments a day linked to potential scams.

These measures, alongside efforts like removing links from text messages and blocking payments to high-risk platforms, have significantly decreased scam-related losses.

“Despite our customers reporting scams at a significantly high rate, we’re seeing a decrease in losses,” Sheehan said in a media release.

NAB’s data revealed that although customer-reported scam incidents rose by approximately 43%, actual financial losses decreased by about 25% when comparing the October to December timeframe from 2022 to the same period in 2023.

NAB is enhancing digital payment channels through expanded payment alerts and the introduction of biometric technology. These efforts aim to fortify the bank's capabilities in detecting and preventing scams.

“We’re now expanding these alerts, and a customer may receive one if our fraud system detects a potential invoice or romance scam payment,” Sheehan said.

Strengthening NAB’s digital defenses

NAB is not only broadening its alert system but also incorporating behavioural biometrics into its business banking digital platform, NAB Connect. This move, along with the strengthening of internet banking platforms, enhances the bank’s ability to detain suspicious payments when necessary.

“This is consistent with our insights, which show almost a third of Australians are happy for banks to slow payments down if it helps protect them from a scam,” Sheehan said.

These NAB efforts are integral to the bank’s comprehensive scam prevention strategy and align with the commitments outlined in the ABA Scam Safe Accord, introduced in November.

Key takeaways from NAB’s scam survey

• Forty per cent of Australians had been contacted by their bank regarding a potential scam in the past year, with 75% taking action to prevent loss.
• Nearly half of Australian adults support their bank in sharing information about suspicious payments to prevent scams.
• The acceptance of digital identity as a protective measure increases with age and income, reflecting a nuanced approach to scam prevention among different demographics.

The "NAB Consumer Insights - Scams" report is available for download.

Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.