Together, CBA and Telstra can shield customers from phone scams.
Today, Telstra and the Commonwealth Bank (CBA) announced a new pilot programme to help safeguard their customers from phone scams.
Scam Indicator, which is currently in proof-of-concept stage and will be piloted over the coming months, will aid in defending joint CBA and Telstra customers from phone scams where criminals attempt to dupe victims into sending them large sums of money.
Early simulation results point to the possibility of advancements in scam detection and prevention, potentially averting customer losses of up to $15–20 million.
A Telstra API that CBA will use as part of its scam detection procedures will be used by the tool to detect specific high-risk scam situations in real time.
This enables CBA to determine whether a customer is on the phone, which is a key sign of a scam. This gives CBA the chance to try to get in touch with the customer or write more checks. To ensure that both parties' privacy is maintained, CBA is only permitted to access through the API certain data points related to preventing scams; it is not permitted to access any other underlying customer data.
"CBA and Telstra are committed to helping customers protect themselves from the financial losses and emotional trauma associated with scams," said Matt Comyn, CEO of Commonwealth Bank.
"Our main goal is to keep customers safe by enhancing scam early detection and prevention. Our collaboration with Telstra has resulted in the creation of a machine-learning scams detection model, the first of many exciting projects to come from this alliance”.He said
"We recognise that more needs to be done given the growing volume and quickly evolving nature of scams. Together with the government, top corporations, and the general public, we're committed to doing our part to address this national priority, according to Mr. Comyn.
According to Vicki Brady, CEO of Telstra, through its Cleaner Pipes programme, Telstra has led the industry in protecting its customers from scams and other malicious activity. The Scam Indicator is another example of how data and AI can be used to benefit customers.
"I'm frequently questioned about why Telstra doesn't do more to combat phone scams, and this is an illustration of how we're doing just that - collaborating creatively with CBA to put in place measures that will help stop this criminal activity in its tracks," Ms. Brady said.
"Scammers, who are becoming more crafty and persistent, pose a constant threat to Australians. Scam prevention and cyber security require a collaborative effort, and we should all be doing our part to stop the spread of this criminal activity. Organizations need to collaborate in this way to share knowledge and insights and to develop solutions that can improve the protection of our customers.
In order to improve product recommendations and to identify potential network problems and cyber threats, AI is used internally by Telstra's customer service department as part of its T25 strategy.
A new joint venture dedicated to developing AI solutions with the customer at the centre was introduced by Telstra last year. It is called Quantium Telstra. In close collaboration with CBA, Quantium Telstra played a key role in the conception, development, and deployment of the Scam Indicator proof-of-concept.
The Scam Indicator is the most recent project in both organisations' ongoing efforts to combat scams.
With enhanced spam and scam filters, Telstra's Cleaner Pipes initiative actively blocks a record number of scam emails, SMS messages, and phone calls. Since its debut, it has prevented roughly 230 million SMS messages (based on April 2022 to February 2023) and 10 million potentially unwanted or scam calls each month. To further this ability, the Scam Indicator is being created.
The initiatives announced today build on a number of recent CommBank announcements made with the goal of helping to protect customers from scams. These announcements include NameCheck technology for money transfers and new caller verification via the CommBank app, as well as a national awareness campaign to help Australians take precautions to protect themselves from scams.
Later this year, after more testing, CBA anticipates making the Scam Indicator available to joint CBA and Telstra customers.
The Australian Financial Complaints Authority (AFCA), meanwhile, is pleased to learn that Telstra and the Commonwealth Bank of Australia have partnered to combat scams.
David Locke, Chief Ombudsman and CEO of AFCA, said, "We are pleased to see telecommunications providers and financial firms working together to detect or prevent scams." The industry must be willing to invest in new technology and be able to react quickly given how common and sophisticated scams are.
More needs to be done, he continued, as "we continue to see substantial increases in the number and size of scams coming to AFCA."
"At AFCA, we are aware of the devastating effects that scams have on victims, so we support any measures businesses can take to safeguard consumers. We implore all banks and telecommunications companies to support this crucial work.
A "Scam Indicator" is being tested by CBA and Telstra to identify high-risk scam scenarios.
In 2021–22, the AFCA received 4,131 complaints about scams, or about 340 on average per month. That was a 28% increase from the prior year. This number has increased to an average of 400 complaints about scams per month in the current fiscal year.
In an effort to reduce scam transactions, the AFCA collaborates with business, consumer advocacy groups, and regulators, sharing its data and insights on complaints.
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