1. BITBILIHome
  2. Article

NAB plans to block payments to crypto exchanges owing to high scam risk

• 186 views

TL;DR Breakdown

  • NAB is planning to block payments to crypto exchanges with high risk to lower the amount of scam losses
  • About 50% of scam funds in the last 30-day period were crypto-related
  • The bank has managed to stop over $270 million in customer payments over March and July this year over scam concerns
  • The total amount of money Australians lost to scammers in 2022 was a record $2.03 billion (AU$3.1 billion)

Description

National Australia Bank(NAB), an Australian lender, is planning to block payments to crypto exchanges with high risk to lower the amount of scam losses. The bank is joining other big lenders in the country in their efforts to curb access to digital assets platforms due to the high scam risk associated with them. NAB is … Read more

National Australia Bank(NAB), an Australian lender, is planning to block payments to crypto exchanges with high risk to lower the amount of scam losses. The bank is joining other big lenders in the country in their efforts to curb access to digital assets platforms due to the high scam risk associated with them.

NAB is working to lower crypto-related scams

In the latest report by NAB, about 50% of scam funds in the last 30-day period were crypto-related, as reported to the Australian Financial Crimes Exchange.

Crypto scams are growing fast among security threats, with Aussies losing over $221 million over the last year to such scams. According to Chris Sheehan, the executive for group investigations and fraud at NAB, in the announcement, the scammers are part of a global, organized criminal group. He added that they are increasingly observing them using crypto platforms to swiftly and often transfer stolen money abroad. Hence, they aim to make it as hard as possible for the scammers to get away with stealing funds from the bank’s customers.

Westpac was the first of the top four Australian banks to implement protection measures against crypto scams for their customers. On the same day, May 18, Binance Australia announced that it was no longer providing customers with Australian dollar deposit services owing to a decision by Cuscal, a payments solutions provider. Cuscal then announced its main focus was protecting Australians from financial scams and crimes.

Other banks, such as CBA and ANZ, followed and announced the blocking of certain crypto platforms.

$270 million blocked in payments

In the same announcement, NAB also said it had managed to stop over $270 million in customer payments over March and July this year over scam concerns. In the last six months, the bank has implemented many steps to combat scammers, such as payment reminders and a prohibition on links in “unexpected” text messages from the bank. Between January and May, there were 29% fewer reports of spoofing scams involving the NAB brand, thanks to the bank’s collaboration with telecommunications companies to prevent thieves from hacking legitimate text message threads and phone numbers.

According to Sheehan, the payment prompts include a checklist based on unusual activity intended to get the customer to step back and evaluate the payment before clicking send. He added that although many consumers finish their payments after getting a prompt, they still see around $290,000 worth of payments that are abandoned daily. Hence, it demonstrates that consumers think things through before purchasing.  

NAB found that four out of ten consumers were “extremely willing” for payments to be delayed in exchange for enhanced fraud protection.

Crypto-related scams have been on a rise

In 2022, over 4,000 Australians reported transferring money to criminals using Bitcoin and other cryptocurrencies, an increase of 162.4% from 2021. The most recent report by the Australian Competition and Consumer Commission (ACCC) states that due to these crypto transactions, criminals could collect as much as $148.4 million (AU$ 221.3 million).

The total amount of money Australians lost to scammers in 2022 was a record $2.03 billion (AU$3.1 billion), with investment scams accounting for more than 66% of all financial losses—up from 55% in 2021.

Criminals received $92.37 million (AU$137.6 million) in digital assets in 2022, continuing a trend initially noticed in 2021, making cryptocurrencies the most popular payment method for investment schemes. Bank transactions came next, with $66.46 million (AU$99 million) lost to various schemes.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:NAB plans to block payments to crypto exchanges owing to high scam risk

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年7月17日 16:01
Next 2023年7月17日 19:25

Related articles

  • Biden and McCarthy strike U.S. debt ceiling deal

    TL;DR Breakdown Biden and McCarthy agree on suspending the $31.4 trillion U.S. debt ceiling. The deal includes a spending cap and added food aid requirements. The bill’s passage requires balancing between Republicans and Democrats. On the cusp of the weekend, the 46th President of the United States, Joe Biden, and Kevin McCarthy, a leading Congressional Republican, brokered an agreement in principle to suspend the towering $31.4 trillion federal government debt ceiling. This critical breakthrough comes after a period of prolonged deadlock, marking a significant step towards averting a potential fiscal crisis. This accord, however, was unveiled against a backdrop of pervasive bitterness reflecting the acrimonious nature of the negotiations and the subsequent challenges that lay ahead for its passage through Congress before the U.S. government exhausts its resources to service its debt in early June. Key terms of the deal “Biden’s phone conversation with McCarthy was what finally catalyzed this agreement,” McCarthy wrote on Twitter, adding that while not perfect, the deal is fitting for the American public. Echoing his sentiment, Biden acknowledged that compromises were inherent to governance, and…

    Article 2023年5月31日

  • U.S. Trustee challenges Delaware Bankruptcy Court’s ruling in FTX case, seeks reversal

    TL;DR Breakdown The U.S. Trustee has directed the Delaware bankruptcy court to reverse its ruling on the independent examiner’s decision in the FTX bankruptcy case. The court rejected the appointment request despite meeting the criteria for appointing an examiner, citing potential high costs and delays. The DOJ Trustee argues that the alleged costs are insufficient justification for deviating from the statutory requirement of appointing an examiner. In a court filing on Wednesday, the U.S. Trustee, a Department of Justice (DOJ) branch, directed the Delaware bankruptcy court to reverse its previous ruling on the independent examiner’s decision in the FTX bankruptcy case. According to reports, the Trustee has stated that the bankruptcy court erred in its ruling during a court hearing held in February. The court had rejected the appointment request in a case where the criteria for appointing an examiner were met, including the requirement that the bankrupt estate has over $5 million in “qualifying liabilities.” In the February hearing, Judge John Dorsey from the Delaware bankruptcy court took the initiative by siding with the FTX estate. During the proceedings,…

    Article 2023年5月19日

  • US GAO calls for stronger interagency cooperation in crypto regulation

    TL;DR Breakdown US GAO releases a report advocating for further regulation of blockchain in finance, focusing on stablecoins and crypto asset trading platforms. GAO calls for improved regulatory coordination. Description The United States Government Accountability Office (GAO), a Congressional watchdog agency, has published a report on the legal framework for using blockchain in finance that it finished in June. Reps. Maxine Waters and Stephen Lynch, the chair and ranking member of the House Financial Services Committee, respectively, sought the 77-page report before the midterm elections. … Read more The United States Government Accountability Office (GAO), a Congressional watchdog agency, has published a report on the legal framework for using blockchain in finance that it finished in June. Reps. Maxine Waters and Stephen Lynch, the chair and ranking member of the House Financial Services Committee, respectively, sought the 77-page report before the midterm elections. Unsurprisingly, the research concluded that further regulation was required. The organization provides a methodology for assessing regulatory reform ideas created in 2009. US GAO seeks further crypto regulation The released report cited stablecoins and crypto asset trading…

    Article 2023年7月25日

  • SEC investigation stalls BarnBridge DAO, BOND token plummets

    TL;DR Breakdown The SEC is investigating BarnBridge DAO, prompting a halt in all its operations. The news has triggered a 9.3% drop in BarnBridge’s native token, BOND. This investigation signifies SEC’s increased scrutiny in the crypto sector, beyond large exchanges. Description BarnBridge DAO, a risk management entity within the decentralized finance (DeFi) space, is under investigation by the U.S. Securities and Exchange Commission (SEC). The news broke out through Douglas Park, the legal representative of BarnBridge, who urged the cessation of all activities linked to the organization on their Discord channel last week. Park, a lawyer … Read more BarnBridge DAO, a risk management entity within the decentralized finance (DeFi) space, is under investigation by the U.S. Securities and Exchange Commission (SEC). The news broke out through Douglas Park, the legal representative of BarnBridge, who urged the cessation of all activities linked to the organization on their Discord channel last week. JUST IN: ⚖️🔎 @Barn_Bridge‘s DeFi protocol, with $1.35 million locked, faces #SEC investigation as the regulator looks into the project and individuals associated with it, leading the DAO’s lawyer…

    Article 2023年7月8日

  • Coinbase targets swing states in crypto lobbying blitz

    TL;DR Breakdown Coinbase launches the “Stand with Crypto” campaign targeting specific U.S. states, including four crucial swing states. A 2022 poll indicates 55% of voters in these swing states are averse to anti-crypto presidential candidates. Beyond swing states, the campaign will also focus on states with a high percentage of crypto owners. Description Coinbase, the leading cryptocurrency exchange, is diving headfirst into political advocacy. With a determined focus on specific states, Coinbase’s “Stand with Crypto” campaign aims to influence crypto-friendly policies and regulations. Their objective? Focus on key territories, including four pivotal swing states that are essential cogs in the political machinery. Targeting Swing States with A Purpose … Read more Coinbase, the leading cryptocurrency exchange, is diving headfirst into political advocacy. With a determined focus on specific states, Coinbase’s “Stand with Crypto” campaign aims to influence crypto-friendly policies and regulations. Their objective? Focus on key territories, including four pivotal swing states that are essential cogs in the political machinery. Targeting Swing States with A Purpose New Hampshire, Nevada, Ohio, and Pennsylvania are the four swing states under Coinbase’s radar….

    Article 2023年9月21日
TOP