National Australia Bank (NAB) has taken proactive steps to restrict payments to certain crypto exchanges categorized as “high-risk.”
Though NAB has chosen not to disclose the specific platforms affected by these restrictions, it cited the prevalence of scams within the crypto industry as the driving force behind this decision. NAB emphasized that cryptocurrency scams represent one of the most rapidly escalating security risks, with Australians losing over $221 million to such scams in the previous year.
The bank also revealed that it had taken action on over A$270 million ($183.8 million) worth of payments in transactions flagged due to potential scam activity during the period of March to July 2023. The bank did not disclose specific information regarding the number of alerts triggered by crypto-related scams.
According to Chris Sheehan, NAB’s Executive for Group Investigations, some of the restrictive measures implemented by the bank include the introduction of payment prompts, handling spoofing incidents, and prohibiting the use of links in unexpected text messages.
Sheehan stated:
“While we’re focused on making banking simple and digital, we’ve added this extra friction to help alert customers to warning signs. We need to everything we can to stop the crime before it happens.”
Sheehan further noted that their research indicates a willingness among four in 10 Australians to accept slower payments in exchange for enhanced protection against scammers.
NAB joins a growing list of Australian banks adopting a vigilant stance against potential cryptocurrency scams. In June 2023, the Commonwealth Bank of Australia announced a set of measures to restrict customer transactions directed toward crypto exchanges, citing concerns regarding crypto-related scams. These measures include the refusal or temporary holding of specific payments destined for crypto exchanges and the implementation of a monthly limit of $10,000 (AUD) on customer transactions directed toward these exchanges.
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