The Commonwealth Bank and Telstra are joining forces to protect their customers from phone scams with a new pilot program that could save up to $20m in losses.
Scam Indicator will be rolled out over the next few months as a proof of concept with the aim of protecting people from scams which trick people into transferring large sums of money.
Early simulations of Scam Indicator show huge improvements in detection and prevention of scams with the potential to mitigate customer losses of between $15-20 million.
The tool is designed to work in real time and detect high-risk situations using a Telstra API (application programming interface) that CBA will have access to as part of its scam detection process.
CBA will be able to check if their customer is on a phone call and can contact the customer and offer them additional safety checks.
The privacy of both parties is protected so the CBA will only have access to specific data points directly related to scam prevention using the Telstra API and will not have access to any other customer data.
This latest initiative builds on several safety features including NameCheck technology for money transfers and new caller verification through the CommBank app.
“CBA and Telstra are committed to helping customers protect themselves from the financial losses and emotional trauma associated with scams,” says Matt Comyn, Commonwealth Bank CEO.
“We are focused on helping customers stay safe by improving early detection and prevention of scams.
“We have been working with Telstra to produce a machine-learning scams detection model, the first in a number of exciting initiatives from this partnership.
“We acknowledge that there is more to do given the rising volume and fast changing nature of scams. We’re committed to playing our part to address this national priority alongside leading businesses, government, and the broader community.”
Telstra has taken an industry lead in protecting customers from scams and other malicious activity through its Cleaner Pipes program.
Vicki Brady, Telstra CEO says: “The Scam Indicator was another example of how data and AI could be used to deliver positive outcomes for customers.
“I’m often asked by people why Telstra can’t do more to protect against phone scams, and this is an example of us doing just that – working innovatively with CBA to put in place measures that will help stop this criminal activity in its tracks.
“Australians are under constant threat by scammers, who are getting increasingly sophisticated and persistent.
Cyber security and addressing the issue of scams is a team effort, and we should be doing all we can to help stem the flow of this criminal activity.
“Part of this needs to be organisations working together like this to share knowledge and insights and partnering to develop solutions that can help better protect our customers.”
