14 September 2023
The Australian Banking Association (ABA) has welcomed the introduction of new legislation to boost the security of identity verification services.
“This is a step in the right direction in the ongoing fight against scams and fraud,” ABA CEO Anna Bligh said.
“The proposed new laws are designed to help provide a safe and secure mechanism for banks to verify identity information provided by customers.”
Under the new layers of security in the proposed laws, banks will be able to undertake 1:1 matching, that is, confirm whether the date of birth or a photo on a passport provided by the customer matches the date of birth or photo of the passport held by the Government.
Banks will only be able to do this with each customer’s consent.
Banks that seek access to this verification service will be required to sign legal agreements that provide a comprehensive and robust range of privacy safeguards.
Ms Bligh said the new laws are a welcome development and will open the door to further advances in the fight against scams, particularly identity theft scams.
“These new laws help pave the way for Facial Verification Service to be utilised which will help ensure key steps such as opening new accounts have additional safeguards in place,” Ms Bligh said.
The new laws will apply to organisations that utilise identity verification services, including the banking and telecommunications sectors, the ATO, MyGov ID, and Centrelink.
Ms Bligh said the ecosystem approach outlined in the new legislation is critical in reducing scams.
“As scams grow ever more complex and sophisticated, Australia needs all sectors to continue the fight against these financial crimes – this includes government, banks, telcos, social media, law enforcement, crypto platforms and individuals.”
Latest news
Tom Connell Those people with a home loan who have had a fixed rate are getting a shock as they come off that fixed rate. Often as low as two percent and onto the new variable rate that can be as high as six or even seven percent. So how is that affecting people out… Read more »
Australians facing difficult financial decisions are being reminded to get in touch with their bank and get the support they need to keep repayments on track. The Australian Banking Association (ABA) is extending its ‘don’t tough it out on your own’ campaign which was launched last year, with a further round of advertisements to run… Read more »
Steve Austin Well as you know, the Commonwealth Government has made it clear they consider access to cash a priority for the Australian economy and the country’s largest banks, as well as Coles, Woolworths, companies like Wesfarmers and Australia Post have been trying to put together a short term lifeline for Armaguard, who’s the company… Read more »