By David Southwell For Daily Mail Australia
15:49 05 Aug 2023, updated 16:30 05 Aug 2023
- CBA blocking transfers to crypto sites
- Monthly sums over $10,000 to be stopped
- Aim is to protect ‘customers from scammers’
The Commonwealth Bank has announced plans to limit monthly transfers to certain accounts and merchants to protect customers from scams and fraud..
Emails seen by Daily Mail Australia have been sent out to Commonwealth customers notifying them that the measures will be rolled out at the start of September or in 30 days from the notice being sent.
‘We’re introducing new measures to help protect you from scams and fraud,’ the bank stated in the emails.
‘We may limit the amount you can pay to certain accounts or merchants, for example those we believe to be associated with cryptocurrency exchanges, to no more than $10,000 in total from all of your accounts each calendar month.’
In its revised terms and conditions the bank advises it may ‘suspend or close your account, cancel or suspend your card or other access method’ to stop crypto-associated payments going though.
It can also decline to ‘process or hold the processing of a transaction or dealing, or particular types of transactions or dealings,’ without providing you with prior notice.
Fred Schebesta, the founder of financial services comparison app Finder and self-described ‘Crypto King of Australia’, said while it was important to protect customer’s banks, it shouldn’t stifle the innovation of digital finance.
‘I’m not surprised that the Commonwealth Bank has announced they are limiting transfers to crypto exchanges,’ he told Daily Mail Australia on Thursday.
‘The crypto market cap is estimated to be worth $US1.22 ($1.87) trillion and there is a growing number of people getting into the crypto space.
‘Banks need to be careful not to hinder the evolution of digital finance.’
A CBA spokesperson told Daily Mail Australia the move ‘is all around protecting customers from scam risks that are associated with making certain payments to these crypto exchanges’.
‘Basically it is just meant to help reduce the number and the amount of money lost by customers,’ the spokesperson said.
‘We are doing our best to strike a balance that keeps all customers safe whilst minimising the inconvenience to many.’
Since June, when the Commonwealth Bank first announced the planned measures, it has been holding crypto payments for 24 hours before clearing them.
‘Customers who make payments to cryptocurrency exchanges are currently facing a significantly higher risk of potentially being scammed,’ CBA General Manager of Fraud Management Services James Roberts said after the June announcement.
‘While these measures will not eliminate the risk of customers suffering losses as a result of a scam that involves a payment to a cryptocurrency exchange, they are part of a range of initiatives designed to help customers reduce their risk of falling victim to a scam’.
However, not all the bank’s customers are convinced.
On a Facebook page devoted to ‘negative experiences’ with the CBA, some saw it as the bank overstepping its mark.
‘I think every bank wants to control our money so cash is the most reliable,’ one wrote.
Another noted it made day-trading in crypto pretty well impossible. Some even accused the bank of hypocrisy.
‘Crazy thing is bank have efts (electronic fund transfers) now buying crypto and they want people to not buy,’ the Facebook user said.
‘Work that out.’
While the Commonwealth Bank spokesman said the $10,000 is a ceiling that could not be raised, the revised terms and conditions for savings and investments accounts were less clear.
They stated that if a higher requested limit was in place but not used for a period of a month the bank could ‘remove or reduce’ it.
The bank could also reduce a limit or refuse payments ‘if they believe it is reasonably necessary to protect you or us from possible fraudulent activity, scams or other activity that might cause you or us to lose money’.
‘When we do this we will act fairly and reasonably towards you,’ the terms state.
‘We will not be responsible for any loss, cost, expense or other inconvenience you incur.’
This appears to contradict other assurances that when the bank stops payments to crypto-associated entities or reduces limits it will do so ‘without liability to you for any loss or damage’.
While the $10,000 limit is the total sum that can be transferred from the combined accounts a CBA customer holds one Facebook user suggested a way to get around the new rules.
‘I just transfer it to another bank and pay from there,’ they said.
‘Problem solved.’
Westpac announced in May it has been trialling ‘customer protections’ for some cryptocurrency payments to reduce scams.
The bank did not state it was setting limits on transfers or go into much detail as to how the ‘protection blocks’ work.
In July, NAB also stated that it will be ‘declining some transactions made to high-risk cryptocurrency exchanges, while Bendigo Bank said it would ‘block certain high-risk crypto-related transactions to protect its customers’.
All banks stated the moves were to protect customers from a ‘scam epidemic’.
The move comes as the bank opens a number of ‘cashless’ branches with customers no longer able to access their money over-the-counter.
Teller cash transactions are not available at branches including Commonwealth Bank Place in the centre of Sydney along with the nearby South Eveleigh, Barangaroo, Penrith and University of Sydney, which the bank now calls ‘specialist centres’.
Daily Mail Australia also understands some ‘specialist centre’ branches in Brisbane and Melbourne no longer permit over the counter cash withdrawals and deposits.
Deposits and withdrawals can still be made via on-site ATMs but for those who don’t have their bankcard handy things get much more difficult.
Last week Daily Mail Australia reported that the Commonwealth Bank can also deny their services to anyone who in ‘their opinion’ is ‘offensive, harassing or threatening to any person’ or ‘promotes or encourages physical or mental harm of any person’.
A Commonwealth Bank spokesperson told Daily Mail Australia the terms were to prevent ‘to address the issue of financial abuse in the context of domestic and family violence’.
‘In 2020, we updated our Acceptable Use Policy to address technology-facilitated abuse and to provide a safer banking experience for customers,’ the spokesperson said.
‘Any customer found to be using NetBank or the CommBank app to engage in unlawful, defamatory, harassing or threatening conduct, promoting or encouraging physical or mental harm or violence against any person may have their transactions refused or access to digital banking services suspended or discontinued’.
Last year Australians lost over $220 million to scammers through cryptocurrency, the Australian Competition and Consumer Commission reported.
The watchdog warned with some scams customers think they are investing in things other than crypto but are asked to pay using that rather than cash.
Credit: Source link
