Should Scam Victims Be Reimbursed by Banks? – Forbes Advisor Australia

Despite the new Anti-Scam Centre and additional practices being put in place by banks, there’s still work that needs to be done, according to cybersecurity experts.

Paul Hankin, a cybersecurity advisor at an Australian leading cybersecurity firm Kaesim, told Forbes Advisor Australia that he believes Australia should  follow in the footsteps of the UK.

“It really puts the onus on the banks to stop the scams, rather than the consumers,” Hankin says.

Along with the regulatory change, Hankin also suggests that the Australian government should commission more cyber awareness campaigns via television ads and other types of media.

When it comes to what banks should be doing to protect their consumers, Hankin suggests enforcing a 24-hour delay on first-time transfers to new people and accounts, as well as matching account names and details. He notes that while a lot of banks have taken on this initiative, others have said it’s “too hard”. He says it’s a change that would really make a difference, especially as Australia continues to be a high target for cyber criminals thanks to a high proportion of “low hanging fruit”.

“We’re an affluent country, so we’re a high level target because there’s lots of money here to steal. It’s a $1.5 trillion a year industry,” he says.

The low-hanging fruit analogy refers to the fact that a vast majority of Australians do not use two-factor authentication on their accounts, no antivirus software on their computers or their phones, easy-to-guess passwords, and practice other poor cybersecurity practices.

To counteract this ease-of-access for cyber criminals, Hankins urges individuals to put two-factor authentication on everything—from personal Twitter accounts to your business email–and installing a trusted anti-virus software across your devices as well.

Hankins also advises that if you come across material from a business that you believe may be fraudulent, such as a suspicious looking email or an unexpected text message asking you to take action, you should contact the business via a different communication channel.

For example, if you receive an SMS claiming to be from your bank and you are unsure of the validity, you should call your bank by its official number–not the number that has contacted you. Or, if a business contacts you via email that seems suspicious, contact them via their listed contact details rather than interacting with the contents of the email.

Hankins says a simple way to remember how to protect yourself online is the acronym DAM: devices, accounts, and your mind.

You need to protect your devices with anti-virus software, protect your online accounts with authentication processes, and protect your mind by staying aware of suspicious activity and acting swiftly if you have concerns about the validity of the communications you receive.