The closure of more than 1.4 million superannuation accounts in 20231, accompanied by disbursements exceeding $58 billion1, creates ample opportunities for exploitation by fraudsters. Manual methods employed for verifying bank account information are not only time-consuming but also prone to errors, providing openings for fraudsters to gain access to these substantial funds.
Incidents of identity theft further contribute to fraudulent activities, enabling unauthorised access to superannuation accounts. The prevalence of data breaches over the last few years, leading to the exposure of personal and financial data, offers fraudsters the necessary information for the manipulation or misuse of superannuation accounts.
Armed with this stolen identity data, perpetrators are able to assume the identity of their victims, navigating past security protocols to gain unauthorised access to superannuation accounts. Once inside, they are able to execute unauthorised withdrawals of substantial sums of funds.
As criminals evolve in their strategies, the urgency to fortify the security measures within the superannuation sector becomes increasingly apparent.
Connect by Basiq offers a comprehensive solution to fight fraud through real-time bank account verification, ensuring that superannuation withdrawals are seamlessly transferred to the intended recipients. Basiq streamlines the account verification process through secure Open Banking authentication, eliminating the need for consumers to disclose sensitive login/password information. Members initiating fund withdrawals online are simply redirected to the website/app of their nominated bank account, creating a secure and user-friendly experience while eliminating traditional steps of asking for bank account details.
TelstraSuper has embraced Open Banking to mitigate the risk of fraud. By leveraging Open Banking, TelstraSuper validates member bank account information swiftly and securely, facilitating faster transactions without the need for cumbersome hard-copy documentation.
Step 1 – Member opts to transfer funds into their bank account
Step 2 – Member verifies by logging into their bank account
Step 3 – Once their bank account is successfully verified and connected, the amount to be withdrawn can be processed
Connecting a user’s bank account extends beyond verifying the account for transferring Superannuation funds. Financial data retrieved through the member’s various financial institutions helps create a comprehensive financial picture. Such insights enable financial advisors to provide more accurate and tailored advice, enhancing the overall financial guidance provided to superannuation members.
In addition, financial data can be used to help improve member engagement. By integrating a member’s financial data from different institutions with their superannuation data, a consolidated view of their net wealth can be created. This consolidated view allows for the development of user-friendly tools like dashboards and real-time alerts, helping members stay up to date and engaged with their financial journey and goals.
1 Based on analysis from publicly available information on superannuation funds and administrators
Important Information: This article has been prepared by Basiq Pty Ltd (ABN 95 616 592 011) (Company), and was originally published on 26 March 2024 on www.basiq.io. Information is current as at the publication date, and the Company has no obligation to update or correct this article. The information contained in this article is of a general nature and is not intended to address the objectives or needs of any particular individual entity, and should not be regarded in any manner as advice. To the extent permitted by law, the Company and its related bodies corporate will not be liable for any errors, omissions, defects or misrepresentations in the information in this article or for any loss or damage suffered by persons who use or rely on such information (including for reasons of negligence, negligent misstatement or otherwise. © 2024 Basiq Pty Ltd
