Australian banks could help prevent online financial scams

Can banks prevent online financial scams? Consumer Law Action Centre told Daily Mail Australia that scams can be avoided  if banks simply check the names of the accounts money is being paid into.

Criminals can give bank details to their victims with any account name on them. Currently, banks then check the BSB and account numbers used in a transfer but do not check if the name used matches the one on the account. 

Gerard Brody, from Consumer Action Law Centre, says the current system leaves Australians at risk of scams. 

'Reforms in the UK and other countries now require banks to do confirmation of payee. Here in Australia, there have been calls for banks to do the same but they are not and that raises big risks for scams.'

Police warn anyone transferring cash to follow up email instructions with a phone call to double check bank account details are correct before sending any money.

- CyberBeat