Australian banks do not generally reimburse customers who have handed over their details to scammers, even if they have been the victim of a sophisticated ruse. ASIC found banks refund between 2 and 5 per cent of scam losses and between them stopped 13 per cent of scam payments.

From October, in Britain, banks will be responsible for reimbursing scam-related losses, unless consumers have been grossly negligent or found acting fraudulently. However, many UK banks have already started reimbursing customers for scam losses.

Consumer advocates have welcomed Westpac’s efforts but said the improved technology changes need to be accompanied by a change in attitude from banks.

“This is exactly what all our banks should be doing, using advanced technology to stop scammers at source, ensuring customers’ life savings are safe,” Consumer Action Law Centre chief executive Stephanie Tonkin said.

“Instead, we continue to hear the banks and their representatives using victim blaming narratives like ‘moral hazard’ and ‘gullibility’ and that ‘banks shouldn’t have to pay’ (for failing to keep customers’ money safe).

These are excuses for the industry’s slow introduction of anti-scam technology - we don’t expect to see confirmation of payee technology being rolled out until the end of 2025 despite the ACCC recommending it to the banks in early 2022,” Tonkin said.

However, the Australian Banking Association has argued that the UK reimbursement laws have made it a honeypot for scammers. It has also suggested that telcos and social media companies share responsibility for scams.

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