The National Australia Bank (NAB) has implemented several measures in the last six months to protect customers from cryptocurrency scams as their frequency has increased this year. For one, the bank has introduced payment prompts, which has led to customers abandoning 12% of payments, according to insights from the NAB app.

The NAB Has Intervened in $270M Worth of Payments

In a recent announcement, the NAB revealed that it has intervened in over $270 million worth of customer payments that were suspected to involve scams. In 12% of these stances, the bank convinced customers to abandon the payments.

“Introducing payment prompts, taking action on spoofing and stopping the use of links in unexpected text messages are among key measures we’ve introduced recently. We’re now also taking action to block some payments to high-risk cryptocurrency exchanges in a further effort to stop scammers,” NAB executive for group investigations and fraud Chris Sheehan said.

Sheehan added that the payment prompts feature a checklist based on uncharacteristic activity, encouraging customers to pause and review their payment before sending.

While many customers still complete their payments after receiving the prompt, approximately $290,000 in transfers were abandoned daily. This suggests that customers are taking the time to stop and think before making a payment.

“While we’re focused on making banking simple and digital, we’ve added this extra friction to help alert customers to warning signs. We need to do everything we can to stop the crime before it happens.”

NAB Implements New Customer Protections to Address Crypto Scams

According to recent Australian Financial Crimes Exchange data, almost 50% of reported scam funds are connected to cryptocurrency, the NBA said. The bank is blocking payments made to high-risk cryptocurrency exchanges in response to the growing threat of cryptocurrency scams.

The report claimed Australians lost over $221 million to crypto scams last year. “These scammers are part of organized, transnational crime groups. Increasingly, we’re seeing them use cryptocurrency platforms to send stolen funds quickly and often overseas,” Sheehan said.

NAB also has been working alongside telecommunications providers to combat spoofing, which involves criminals infiltrating phone numbers and legitimate text message threads. Through this collaboration, NAB has successfully reduced reports of NAB-branded spoofing scams by 29% from January to May.

In the event of a suspected scam, NAB urged customers to contact their bank and Scamwatch. This Australian government website provides information about scams and how to protect against them. “We continue to encourage all Australians to stay alert, curious and educated about the latest scams,” Sheehan said.

Australia Increase Scrutiny of Crypto

Australia has ramped up its scrutiny of crypto firms as of late. Back in May, cryptocurrency exchange Binance Australia told customers they would lose access to Australian dollar deposits and withdrawals due to a decision by its third-party service provider.

Furthermore, Australia’s Commonwealth Bank (CBA) announced last month that it aims to decline “certain payments” to crypto exchanges or hold them for 24 hours to protect customers from scams. The bank also said it plans to introduce a limit of payments to crypto exchanges of 10,000 Australian dollars ($6,700) per calendar month in the months ahead.

In response to increasing restrictions on crypto payments, Blockchain Australia, an industry body representing the Blockchain and digital currency industry in Australia, launched new initiatives to tackle the issue of crypto scams and frauds “head-on by using real data.”

The organization revealed last month that it had started an education program to educate consumers on crypto and its benefits, including ways to identify scams. It also aims to recognize good actors in the industry that employ best practices recommended by banks.

This article originally appeared on The Tokenist

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.