Telstra and CommBank Strengthen Partnership to Enhance Fraud Detection
Telstra and CommBank have announced an expansion of their ongoing collaboration to combat scams and fraud, unveiling a new technological advancement called the ‘Fraud Indicator.’ This cutting-edge technology is designed to help protect Australians from identity theft by analyzing mobile service usage patterns to detect fraudulent activity.
The Fraud Indicator, developed by Quantium Telstra in collaboration with CommBank, allows for the secure sharing of intelligence regarding unusual mobile service activity. By identifying anomalies in mobile usage, the system can help detect identity theft and enhance fraud prevention efforts. Since its launch earlier this month, the technology has already demonstrated its effectiveness, with expectations of improving CommBank’s fraud detection rate for unauthorized account openings by over 25% for customers who use both CommBank and Telstra services.
Understanding the Fraud Indicator Technology
Sandy Cameron, CEO of Quantium Telstra, emphasized the significance of the technology in recognizing fraud patterns. “Fraudsters exhibit distinctive behaviors in mobile phone usage. By combining this intelligence with an organization’s own data analysis, Fraud Indicator becomes an instrumental tool for early intervention, potentially preventing fraudulent transactions before they occur,” he said.
For instance, when a fraudster attempts to open a new bank account, they provide a mobile number to receive passcodes for authentication. By leveraging insights into mobile service Telstra usage that differ from typical customer behavior, CommBank can assess the risk level of the account registration and take preventive action before fraud is committed.
Expansion of Anti-Scam Measures
The introduction of Fraud Indicator follows the successful implementation of Scam Indicator, another technological initiative developed by Quantium Telstra in partnership with CommBank. Scam Indicator is designed to detect and intercept suspected scam calls in real-time. Since its initial launch, the technology has been expanded to include landline detection, providing added protection to vulnerable customers, including elderly Australians who are often targeted by phone scams.
The effectiveness of Scam Indicator has been evident Telstra in its ability to save CommBank customers from losing millions of dollars to fraudulent schemes. The addition of Fraud Indicator further strengthens the efforts to mitigate financial fraud and protect Australians from identity theft.
The Rising Threat of Identity Theft
Despite a nationwide effort to curb fraud and scams, identity theft remains a growing concern in Australia. According to the Australian Competition and Consumer Commission (ACCC), the total amount of scam losses reported in Australia dropped by 13.1% from 2022 to 2023. However, identity theft cases have continued to rise, with up to 200,000 Australians affected in the financial year 2023, as per data from the Australian Bureau of Statistics (ABS).
Identity theft can have long-lasting and severe consequences, including financial loss, damaged credit scores, and significant emotional distress. With cybercriminals continually adapting their tactics, there is an urgent need for stronger cross-industry collaboration to combat this evolving threat.
CommBank’s Commitment to Fraud Prevention
James Roberts, General Manager of Group Fraud at CommBank, reaffirmed the bank’s dedication to safeguarding its customers. “Keeping our customers’ money safe is a priority for CBA. Over the past two years, we have managed to reduce customer scam losses by more than 70%, but there is still much work to be done,” he stated.
Roberts further emphasized that addressing fraud requires a comprehensive and collaborative approach. This includes sharing behavioral and device-based intelligence with other banks in real-time and working alongside industries such as telecommunications to build a more secure financial ecosystem.
“It will take a cumulative and legislated effort across industries—including digital platforms, social media companies, telcos, and banks—to effectively combat scammers,” Roberts explained. “We remain committed to innovation and cross-sector collaboration to protect Australians from fraud.”
The Economic Impact of Fraud and Scams
The financial toll of fraud on Australian businesses is substantial, extending beyond direct financial losses to include labor costs, legal fees, and recovery expenses. By detecting fraudulent activity more effectively and reducing false positives, the Fraud Indicator has the potential to significantly decrease operational costs for businesses and bolster the country’s overall fraud prevention framework.
Sandy Cameron echoed this sentiment, stating, “The commercial impact of fraud and scams on Australian enterprises is alarming. The full cost extends beyond monetary losses to include operational disruptions and reputational damage. By improving fraud detection capabilities and minimizing false alerts, Fraud Indicator can play a crucial role in the fight against financial crime.”
A Call for Increased Collaboration
As cybercriminals become increasingly sophisticated, banks, telcos, and technology firms must work together to stay ahead. The partnership between Telstra and CommBank, exemplified by the introduction of Fraud Indicator, serves as a model for how industries can collaborate to address fraud.
By pooling resources and expertise, organizations can develop more effective fraud detection technologies and create a more secure environment for customers. With increased collaboration and legislative support, Australia can take significant strides in reducing the prevalence of fraud and identity theft.
The introduction of Fraud Indicator marks another step forward in the fight against financial crime, underscoring the importance of industry-wide cooperation and continuous innovation. As more Australian enterprises join the effort, the hope is that fraud prevention measures will become more robust, making the country a far less attractive target for cybercriminals.
