National Australia Bank reveals drastic measures to protect customers from crypto scams

TL;DR Breakdown

  • One of the key steps outlined by NAB is the blocking of certain cryptocurrency platforms, citing high levels of scam risk within the industry.
  • Although the bank did not disclose the names of the specific cryptocurrency exchanges that will be affected, Chris Sheehan, NAB’s executive for group investigations and fraud, mentioned that the blocks would target “high-risk” platforms known for prevalent scam activities.
  • The bank highlighted the rapid growth of cryptocurrency-related scams, with Australians losing over $221 million to such schemes in the previous year.

Description

On July 17, National Australia Bank (NAB) made an announcement regarding its new measures to protect customers from fraud as part of its “bank-wide scam strategy.” One of the key steps outlined by NAB is the blocking of certain cryptocurrency platforms, citing high levels of scam risk within the industry. The bank revealed that it … Read more

On July 17, National Australia Bank (NAB) made an announcement regarding its new measures to protect customers from fraud as part of its “bank-wide scam strategy.” One of the key steps outlined by NAB is the blocking of certain cryptocurrency platforms, citing high levels of scam risk within the industry.

The bank revealed that it had halted millions of dollars in payments between March and July 2023. In addition to this, NAB will introduce blocks on “some cryptocurrency platforms” in order to safeguard its customers from potential scams. Although the bank did not disclose the names of the specific cryptocurrency exchanges that will be affected, Chris Sheehan, NAB’s executive for group investigations and fraud, mentioned that the blocks would target “high-risk” platforms known for prevalent scam activities.

Sheehan emphasized that scammers involved in these fraudulent activities are often part of organized transnational crime groups. He further noted that cryptocurrency platforms have become increasingly popular among these criminals for swiftly transferring stolen funds, often to overseas locations. 

Rapid growth of crypto-related scams in Australia

Local reports suggest that Sheehan hinted at Binance, a prominent crypto exchange, being among the platforms affected by NAB’s blocks. He reportedly stated that the bank’s approach would align with the industry as a whole. It is worth noting that other major Australian banks, including Westpac and the Commonwealth Bank, have previously implemented similar restrictions on payments to Binance.

In its official statement, NAB reiterated claims made by local banks that nearly 50% of reported scam funds in Australia are connected to cryptocurrencies. The bank highlighted the rapid growth of cryptocurrency-related scams, with Australians losing over $221 million to such schemes in the previous year. Furthermore, NAB argued that 40% of Australians are willing to accept slower payment processing if it means they are better protected against scammers.

The move by NAB reflects a broader trend within the Australian banking sector, as financial institutions seek to address the rising concerns surrounding cryptocurrency-related fraud and scams. These measures aim to safeguard customers and prevent the illicit use of cryptocurrency platforms for illegal activities. By implementing blocks on high-risk platforms, NAB hopes to reduce the risk of customers falling victim to scams and losing their funds.

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 decision.

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