Westpac, one of Australia’s leading banks, has initiated the first phase of its trial of scam prevention tools to combat cryptocurrency-related fraud. The bank aims to introduce a set of tools and safety measures that wil help reduce risks and minimize losses associated with crypto and investment scams.
According to Westpac, over a third of all scams involve direct transfers to cryptocurrency exchanges, making them difficult to trace. Additionally, investment scams account for almost 50% of customer losses resulting from fraudulent activities.
Westpac outlined several red flags for investment scams, including fake social media advertisements, fraudulent websites and documents, obtaining personal details through deception, instructing victims to perform certain actions, and the use of spoofing software to appear legitimate.
Westpac plans to gradually introduce testing for new cryptocurrency payment protection blocks. The bank has just begun the trial’s first phase; it intends to commence the second phase later this month.
The bank also is rolling out this trial alongside other scam prevention and detection initiatives. Some of these initiatives include Westpac Verify and Dynamic CVC.
The trial coincides with Binance’s recent announcement that customers can no longer use its PayID service to transfer Australian dollars to their accounts. Binance clarified that bank transfer withdrawals on the exchange were temporarily restricted due to the actions of a third-party provider.
Earlier, the Australian Securities and Investments Commission (ASIC) revoked the license of Oztures Trading Pty Ltd, which operates as Binance Australia Derivatives, after an extensive examination of Binance’s activities in the country. ASIC’s decision, effective from April 14, 2023, means customers of Binance Australia Derivatives can no longer increase their derivatives holdings or initiate new positions on the platform, as the license has been terminated.
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