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The State of Fraud and Scams in Australia

Posted on by Cuscal Limited

Fraud and scams are rising, and they’re shaking customer confidence at its foundation. Every scam attempt is a moment of vulnerability for your customers. Based on Cuscal’s Quarterly Insights research with over 2,000 Australian consumers, 57% of respondents face scam attempts weekly, and almost one in three has been impacted. Behind every statistic is a person who wants to feel safe when they bank with you.

Trust Starts with Security

Security and trust go hand in hand. Customers expect robust protection, but they also value reassurance that you genuinely have their best interests at heart. Trust drives loyalty, and loyalty translates into retention and revenue. When customers feel both protected and valued, they stay.

Security as a Strategic Advantage

As confirmed by our latest survey and qualitative community study, communication plays a critical role in building that trust. Nine out of ten respondents believe their financial institution should do more to protect them, and 86% want regular updates on new scam tactics. Security has evolved beyond compliance. Today, it’s a competitive advantage and a core promise that influences why customers choose you and stay with you.

Our insights point to five essentials:

  1. Visible, robust protection such as multi-factor authentication and real-time alerts.
  2. Proactive education through scam alerts via SMS, in-app notifications, and targeted campaigns.
  3. Empathetic support with fast, human responses when things go wrong.
  4. Transparent communication that keeps customers informed every step of the way.
  5. Customisable security options that give customers control and confidence.

Strengthening Your Fraud Defences

Fraud prevention goes beyond protection. You’re earning trust when it matters most, and that trust becomes the foundation of lasting customer relationships. Cuscal can help you deliver on that promise with advanced fraud monitoring for cards and real-time payments, AI-driven detection tools, and comprehensive financial crime solutions that keep you ahead of emerging threats.

Stay Ahead of Fraud Threats

Explore the full report for practical strategies, real-world case studies, and industry benchmarks that can help you stay ahead of emerging threats.

Important Information: Information in this web copy and White Paper are current as at 04 March 2026 and is subject to change. This information is provided for general information purposes only and not for the purpose of providing legal, financial or investment advice. The information contained in the web copy and White Paper does not constitute an offer, a solicitation of an offer or to enter a legally binding contract. The web copy and White Paper contains material provided by third parties. While such material is published with the necessary permission, Cuscal does not accept any responsibility for the accuracy or completeness of any such material. Although Cuscal has made every effort to ensure the information is free from error, Cuscal does not warrant the accuracy, adequacy or completeness of the information. Except where contrary to law, Cuscal intends by this notice to exclude liability for the information. This web copy and White Paper is not to be distributed to any other party without Cuscal’s prior written consent. Cuscal Limited ABN 95 087 822 455.

How Confirmation of Payee is Putting the Brakes on Scams

Posted on by Steph Hussey
Girl on bus smiling on her phone looking out window

Scams are costing Australians billions each year and the pressure is mounting on banks and mutuals to continuously step up their defences. That’s the goal of the 2024 Scam-Safe Accord, a new industry framework led by the Australian Banking Association (ABA) to reduce scam losses and improve customer protection.

A key ABA recommendation is the introduction of Confirmation of Payee (CoP) – an industry-wide service initiative of Australian Payments Plus that matches the bank account details entered by a payer with the account details held by the recipient’s bank and displays a match outcome to the payer.

Data from the 2024 Mapping Social Cohesion Report shows nearly half of Australians believe most people can be trusted which suggests they may not instinctively have fraud or scams front of mind . CoP creates a pause in the payments process, alerting customers before money moves and helping to safeguard people and businesses from fraud, scams and mistaken payments.
Indue is enabling clients to adopt CoP and strengthen payment security across the board. So how effective is it? And what role does it play in the evolving payments landscape?

We spoke with Indue’s Head of Innovation & Strategic Initiatives, Jenny Osborne to find out.

Why is CoP such a significant step forward for payment security in Australia?
Scammers often rely on urgency and quick decisions to trick people, so CoP creates a pause in the digital payments process to encourage people to stop and think, before they are caught off guard.

It puts customers in the driver’s seat, helping them make more informed choices before the transaction is complete and it may be too late. It also offers confirmation to ease doubts when something doesn’t add up.

Tools like CoP provide an important extra layer of defence for Australians to reduce both scams and mistaken payments.

What does CoP mean for Indue customers?
Under the 2024 Scam-Safe Accord, CoP is set to become an industry-wide standard. For our customers, adopting this technology is about more than compliance; it’s about keeping pace with the latest trends and maintaining parity with the bigger banks.
Scammers are quick to identify gaps in the system and banks that don’t adopt this safeguard may be seen as easy targets.
That’s a real challenge for our clients and we’re working closely with them to make sure they’re protected and prepared.

What does experience with CoP-style technology overseas tell us? And what should Australians be looking out for?
Versions of CoP exist globally across the EU, UK, New Zealand and other countries globally.

One of the most significant changes overseas has been liability. Last year, newly introduced rules from UK Payment Systems Regulator mean both the payer bank and the payee bank now share responsibility if someone is scammed . It’s a strong signal that regulators expect more from financial institutions – and it’s a trend Australia needs to be ready for.

Where does CoP fit in the broader push for safer digital payments? And what’s next?
Scams and fraud have been steadily rising in recent years and CoP is just one of many tools needed to respond.
Scammers often have more time and fewer rules than the organisations trying to stop them, which makes coordinated action across businesses and industries even more important. No one tool will be the saving grace but what’s needed is a combination of tools, regulation and education.

We’re already seeing more obligations passed down through the Treasury, Australian Banking Association and Customer Owned Banking Association, and that pressure is only going to increase.

Payment security is no longer optional but a shared responsibility across our entire digital ecosystem.

Important Information: This article has been prepared by Indue Limited (ABN 97 087 822 464) (Company) and was originally published on 08 July 2025 on www.indue.com.au. 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). © 2025 Indue Limited

Harnessing Open Banking to Fight Superannuation Fraud

Posted on by Cuscal Limited
harnessing-open-banking-to-fight-superannuation-fraud

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. 

Unauthorised access to Superanuation 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.

The use of Open Banking

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.

How does it work?

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

Other benefits of Open Banking for Superannuation

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

Protecting your Digital Identity

Posted on by Steph Hussey

Financial institutions spare no effort in combating fraud and protecting their customers from scammers, and there are thousands of people working around the clock to protect you and your money.

However, in recent years scammers have realised they are competing with advanced multimillion-dollar fraud detection controls and systems, and therefore the path of least resistance is to trick customers into helping them bypass the fraud controls that are put in place for customer protection.

The truths we must acknowledge:

1. Scammers already have some of your data

There’s an alarming amount of compromised data out there, and scammers are becoming increasingly skilled at exploiting it. The numerous Australian data breaches publicised widely are just the tip of the iceberg.

You can check how many data breaches have involved your details at this website: https://haveibeenpwned.com/ 

2. If you think you are too smart to be scammed, you are a great target!

Scammers, armed with your stolen data, can piece together a comprehensive profile of their targets. That seemingly innocent chat on WhatsApp or a transaction on Facebook Marketplace can be a data-mining expedition. This, in turn, can be exploited to build trust and manipulate people into compliance.

The following are some steps you can take to shield yourself from scams:

  • Stay informed: Learn from the experiences of scam victims, by putting yourself in the victim’s situation and considering how the controls you have in place could have protected you in their situation.
  • Limit personal information sharing: Be cautious about the amount of personal information you share on social media ,and tighten your security settings. The less scammers know about you, the harder it is for them to craft convincing scams.
  • Enable Two-Factor Authentication (2FA): Whenever possible, enable 2FA for your online accounts. This adds an extra layer of security, making it significantly more difficult for scammers to gain access to your accounts.
  • Have strong, unique passwords: Don’t underestimate the importance of strong, unique passwords for each of your online accounts. Consider using a reputable password manager to help you generate and store them securely.

Your data is your digital identity, and safeguarding it is vital. Scammers can use your data to gain trust, manipulate, and exploit vulnerabilities.

By taking steps to protect your data and sharing this knowledge with others, we can collectively defend against data-driven scams and build a safer digital world.

Important Information: This article has been prepared by Indue Limited (ABN 97 087 822 464) (Company) and was originally published on 29 November 2023 on www.indue.com.au. 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). © 2023 Indue Limited

AI, machine learning and fraud

Posted on by Cuscal Limited

Nuno Sebastiao, CEO of Feedzai presented AI at the centre of a crime free financial world at Curious Thinkers 2018 in Sydney.

He gave an overview of the machine learning capabilities of the Feedzai fraud prevention platform. He described how Feedzai uses artificial intelligence and machine learning to continuously learn from the massive amounts of data it processes and provide state-of-the-art fraud prevention.

Kieran McKenna (Cuscal), Leila Fourie (AusPayNet), Nigel Butler (Valocity) & Richard Harris (Feedzai) joined Nuno in a panel discussion on unlocking new tech to drive business growth.

Watch the AI, machine learning and fraud video to learn more.

Fraud and AI: what you need to know

Posted on by Cuscal Limited

Artificial Intelligence (AI) is already having a significant impact on the way we do business today. From helpful chat bots guiding us through complex purchase journeys to detecting potentially fraudulent payments, AI has the potential to create seamless customer experiences while simultaneously processing large amounts of information.

Machine learning frees humans from the grunt work of data tracking and pattern analysis – it’s faster, more scalable and learns from past information. No wonder Gartner predicts that more than 40% of data science tasks will be automated by 2020.

So when it comes to balancing customer demand for real-time payments with secure fraud-mitigating authentication, AI is an effective enabling tool for fraud teams to focus their investigation skills in the best place to securely ensure the speed and rigour required for a real-time payment. And that’s why more organisations are exploring the use of AI, especially in the area of fraud.

What role could AI play in fraud prevention and detection?

Through machine learning, the complexity of big data really becomes useful. At Cuscal, we have partnered with Feedzai to provide an advanced risk management platform that will be core to protecting Cuscal clients from the evolving threat of fraud.

“When using Feedzai, banks have significantly improved fraud detection, reduced false positives and overall a better customer experience – outperforming leading non-AI solutions – that’s why banks like Citi and Capital One have backed Feedzai’s technology.” said Richard Harris, SVP Sales International from Feedzai.”

With so many more payment channels available – online, mobile, P2P – there are more points of vulnerability. More than ever, we need a complete view of customer activity across products, an integration of channels to improve the customer experience, and to make more data-backed business decisions.

How will AI strengthen existing fraud protection systems?

With AI’s ability to analyse complex data in real time, fraud teams are better equipped to predict fraud before it occurs and so minimise losses.  AI reduces some of the noise of large amounts of data to focus on the real threats.  As we prepare to launch the New Payments Platform (NPP) in Australia, we can expect to see digital transaction processing converge with analytics providing better insights. Machine learning will enable organisations to look at more data, from more sources, and make better predictions with less uncertainty.

Of course, bots could be working on both sides – and the next generation of AI-enabled fraud systems will also need to be prepared to tackle new and increasingly sophisticated fraud attempts and scams.

Every Australian financial institution connecting to the New Payments Platform (NPP) needs to consider their real-time fraud monitoring and ensure effective controls are in place. AI is likely to underpin best practice – checking every transaction in real time for anomalies and flagging suspicious activity for action by experienced fraud investigation teams.

Learn more about preventing fraud in a real-time world.

Fraud prevention: then and now

Fraud & AI Infographic

Learn more about preventing fraud in a real-time world.

By Michelle Trundle, Senior Manager, Fraud

4 ways financial institutions are preparing for the NPP

Posted on by Cuscal Limited

People sitting in a row using digital devices

What happens when payments are as easy and immediate as sending a text message? While the digital opportunities of Australia’s new super-fast payments system are exciting, its speed may also increase the potential risk of fraudulent transactions. The NPP (New Payments Platform) isn’t more vulnerable to security breaches, but banks will no longer have the luxury of time to detect and respond to fraudulent or suspicious transactions.

And that’s why Australian financial institutions are already preparing for NPP – by shifting their risk focus to planning and prevention.

The NPP is a platform that enables real-time clearing and settlement for simple or complex payment solutions, between two people or between many. When it launches next year, almost all Australian bank account holders will be able to make and receive payments in seconds.

The promise of bank transfers clearing almost instantly – even on bank holidays and weekends – is alluring for consumers, business and government. But when payments happen faster, there won’t be time for our tried and tested detection processes. Based on the UK’s experience with its Faster Payment Service, the most common risk is likely to be social engineering scams, where fraudsters convince a customer to make a payment by posing as a trusted brand. Account compromises and mule accounts (for money laundering) are other possible fraud issues.

Any financial institution connecting to the NPP will need to have real-time fraud detection and response controls in place.

As one of the primary architects of the NPP, Cuscal is working with more than 30 financial institutions to securely connect to this game-changing banking infrastructure. Here are four ways we’re working with our clients to get ready.

1. Preparing for PayID verification. 

Forget BSBs and account numbers – with the NPP, bank accounts can be linked to the customer’s email address or mobile phone number. Easier to remember, these PayIDs are directly associated with the actual account name so there’s less risk of paying the wrong person. While this will help ensure payments go to the right place – it will also impact current payment verification protocols.

Financial institutions are responsible for registering customer information in PayID, and may be liable for any loss that results from incorrect or fraudulent data input. That’s why the account name associated with the PayID is an important control checkpoint and one banks need to pay particular attention to.

2. Setting strong controls for detail changes. 

Every PayID can be changed – for example, if a customer gets a new phone number – so banks are setting up new control processes to ensure customer detail updates are verified. Participating financial institutions can also set their own customer transaction limits.

Reassuringly, the NPP solely focuses on actively authorised payments: every payment must be approved by the account holder so there is no assumption of authority (as there is with direct debits or can be with credit card payments). This protection complements the strong authentication procedures that banks have in place when updating account details, as knowing the account number is not enough for a fraudster to access someone else’s account.

3. Sharing knowledge. 

Typical customer payment patterns are critical for fraud prevention, and Australian banks already have good visibility of this data. By working with Australian financial crime investigation and enforcement agencies, institutions are able to quickly identify scams and other fraudulent activity.

Financial institutions can supplement this shared knowledge with additional layers of real-time fraud monitoring. At Cuscal this includes a specialist fraud monitoring team, AI-enabled pattern recognition and data analysis and integration with the NPP’s inbuilt fraud detection capabilities.

4. Educating customers. 

Changing habits is always hard – so to establish trust in the security of this payment platform, financial institutions are investing in ongoing education programs. As well as helping Australian consumers and businesses select and manage their PayIDs, they are building awareness of current scams, how to report fraudulent transactions, and how to protect their identity.

Our digital economy never sleeps – but neither will fraudsters. To ensure the NPP doesn’t open the door to a new scam opportunity, Australia’s financial institutions are already preparing for this latest wave of payment innovation.

Learn more about preventing fraud in a real-time world.

By Nathan Churchward, Senior Manager, Payments