The National Australia Bank (NAB) has recently imposed stringent measures by suspending transactions to cryptocurrency exchanges considered “high-risk.” This move has led to the interception of an impressive A$270 million ($183.8 million) over four months. Although NAB has not disclosed the specific platforms involved, the bank’s decision is driven by the potential risk of fraud, as announced on July 17.
Following NAB’s initiative, other major Australian financial institutions, including Westpac, Commonwealth Bank of Australia, and ANZ, have also taken similar steps in recent weeks. These actions demonstrate their commitment to mitigating risks associated with cryptocurrency transactions.
The decision aligns with the ongoing security concerns and illicit activities in the cryptocurrency landscape. By proactively blocking payments to exchanges deemed “high-risk,” these banks are taking proactive steps to protect their clients from potential fraudulent schemes.
While the identities of the targeted exchanges remain undisclosed, the united front of these financial institutions underscores the importance of addressing risk factors associated with the crypto realm. As the Australian banking sector takes a stance against potential threats, it becomes increasingly evident that maintaining robust security protocols is paramount in the world of digital assets.
Chris Sheehan, NAB’s Executive for Group Investigations and Fraud, has highlighted the effectiveness of several measures implemented over the past six months in safeguarding customers from scams.
“Introducing payment prompts, taking action on spoofing, and stopping the use of links in unexpected text messages are among key measures we’ve introduced recently. We’re now also taking action to block some payments to high-risk cryptocurrency exchanges in a further effort to stop scammers,” Mr Sheehan said.
He added:
“While many customers ultimately complete their payment after receiving a prompt, we’re seeing around $290,000 worth of payments abandoned daily. This tells us that customers are taking the time to stop and think before they make a payment.”
In a recent 30-day period, approximately half of the funds reported as scams to the Australian Financial Crimes Exchange were found to be associated with cryptocurrency.
