Sophie Gilder, the head of blockchain at Commonwealth Bank, emphasizes the need for a collective effort to tackle scams, involving not just banks but also other sectors of the economy.
Gilder highlights that banks alone cannot solve the problem, as scams often originate from social media or telecommunications companies, with banks being utilized for transferring funds.
To address the rising scam challenges, Gilder suggests that payment providers, social media operators, telcos, and cryptocurrency exchanges should join forces with banks. However, she acknowledges that each entity has different scam prevention measures in place.
During a Sydney Blockchain Week event, Gilder emphasizes the importance of data sharing and establishing minimum standards across industries. She calls for legislation that enables effective data sharing, as the current restrictions hinder collaboration.
Gilder emphasizes the need for efficient cooperation and emphasizes the importance of empowering law enforcement with appropriate authorities to take action.
To make Australia a less attractive target for scammers, Gilder emphasizes the necessity of reducing friction and enhancing security measures.
Commonwealth Bank has already implemented measures to prevent potentially fraudulent transactions via cryptocurrency exchanges by imposing a 24-hour delay or declining payments.
Gilder reveals that Australians lost around $3 billion to scams in 2022, an 80% increase compared to the previous year. She anticipates even higher numbers in 2023.
With approximately 650 customers contacting the bank each month, often distraught after losing their life savings, Gilder emphasizes the urgent need for collective action. Banks, payment service providers, the government, social media platforms, telcos, and cryptocurrency exchanges must all step up their efforts.
Regarding CBA’s cryptocurrency features, Gilder mentions their data-driven approach, considering current events, evidence, and patterns. The effectiveness of these features will be monitored, with the expectation that they will reduce both the frequency and impact of scams. However, regular assessments and revisions will be conducted to ensure their efficacy.
