Westpac launches ‘innovative’ AI questionnaire in scam fight
In the realm of cybercrime, where millions are siphoned off through scams annually, Westpac emerges as a pioneer with its latest defensive strategy. Rather than merely reacting to the onslaught, the bank has taken proactive measures by introducing an AI-driven questionnaire to thwart scammers' attempts to defraud Australians.
According to statistics from the Australian Bureau of Statistics (ABS), the incidence of individuals falling prey to scams has marginally decreased over the past three years, accounting for approximately 2.5 percent of the population, equating to about 514,000 victims. Undeterred by these alarming figures, Westpac's arsenal, comprising over 500 financial crime experts, successfully thwarted scammers from pocketing a staggering $400 million over the past biennium.
A pivotal addition to Westpac's defensive architecture was unveiled on Tuesday—a questionnaire feature integrated into its online banking and in-app transactions interface. Described as a groundbreaking innovation in Australia by Westpac CEO Peter King, this feature injects crucial friction into transactions flagged with a high scam risk.
When transactions raise suspicion, AI-generated inquiries such as "is this an investment?" or "is this money destined for a friend?" prompt users for clarification. Subsequent to analyzing the responses, Westpac's system initiates requisite follow-ups to cross-reference the transaction against prevalent scam patterns.
While Westpac's preventative measures have significantly curbed customer losses in the past year, King acknowledges that fraudsters continue to siphon millions from customers monthly. Although the bank refrains from directly disclosing total scam and fraud losses, such data is shared with the Australian Competition and Consumer Commission (ACCC), which reported losses of $567 million to scams in 2022 and $476 million the following year.
ABS data underscores that individuals aged 35-44 bore the brunt of scams in the previous year, with a prevalence rate of 3.5 percent within this demographic. However, it's the elderly population over 65 who collectively suffer the most substantial financial losses to scams. Common scam categories include fraudulent transactions related to buying or selling, solicitation of personal information, and upfront payments.
Interestingly, ABS data reveals that card fraud surpasses scams in terms of prevalence. Last year alone, approximately 1.8 million Australians over the age of 15 fell victim to card fraud, constituting 8.7 percent of the demographic.
The evolving landscape of scams poses an ongoing challenge. Earlier this year, concerns were raised about a scam involving the recording of a three-second audio snippet of an individual's voice, subsequently utilised by AI to impersonate them and target their contacts. Presently, Westpac alerts customers about phishing emails purporting to be from the bank, urging vigilance against clicking on suspicious links to prevent divulging personal information.
In essence, Westpac's proactive adoption of AI-powered defences represents a significant stride in safeguarding customers against the ever-adapting tactics of cybercriminals. However, staying ahead in this technological arms race demands continued vigilance and innovation to outmaneuver the adversaries lurking in the digital shadows.