Telstra & CommBank extend partnership to combat fraud

Telstra and CommBank have confirmed an extension of their collaboration to enhance fraud detection through the introduction of new 'Fraud Indicator' technology.

This collaboration, which also involves Quantium Telstra, aims to enhance the security and protection of Australians against identity theft by sharing intelligence about unusual mobile service usage. The Fraud Indicator technology is anticipated to improve CommBank's detection rate for fraudulently opened accounts by more than 25% for joint customers of CommBank and Telstra.

Sandy Cameron, CEO of Quantium Telstra, explained the process, stating, "Fraudsters show some distinctive behaviours and patterns when it comes to mobile phone usage. When this information is combined with an organisation's own insights and analysis, Fraud Indicator becomes a powerful tool to prompt interventions, potentially disrupting fraud attempts earlier."

Cameron provided an example of how the technology works: "A fraudster signing up for a new bank account provides a mobile number to receive passcodes and authenticate the account. By accessing insights on how this mobile service is used – which differs from normal behaviours – CommBank can better assess the risk that this is a bad actor and potentially stop fraudulent accounts from being opened."

The Fraud Indicator follows last year's creation of the Scam Indicator, another technology developed by Quantium Telstra and CommBank that intercepts suspected scam calls in real-time. The Scam Indicator has reportedly saved CommBank customers millions and has been adapted to protect landline users as well.

Despite national and cross-industry efforts to diminish fraud and scam impacts, identity theft in Australia is on the rise. Government data indicated that close to 200,000 individuals experienced identity theft in the financial year 2023.

James Roberts, General Manager of Group Fraud at CommBank, emphasised the importance of such initiatives, saying, "Keeping our customers' money safe is a priority for CBA. We've reduced customer scam losses by more than 70 per cent over two years but more needs to be done, and we remain focused on continuing to help customers stay safe by improving early detection and prevention."

Roberts further highlighted, "It will take a cumulative and legislated effort across industries – including digital platforms and social media companies, telcos and banks – to combat scammers. We're committed to continuing to innovate and work together with others to protect Australians."

Quantium Telstra plans to expand the availability of the Fraud Indicator to additional partners particularly those engaging with customers through digital channels, to bolster fraud prevention measures.

Cameron remarked on the potential for wider impact, noting, "Our Fraud Indicator with CommBank showed us the great potential to reduce the impact of fraud with this new technology. With increased collaboration between more Australian organisations, we could help protect many more Australians."

Cameron also addressed the financial implications of fraud, stating, "The commercial impact of fraud and scams on Australian enterprises is alarming, and the full cost goes well beyond the money lost – including labour, legal and recovery costs. By detecting more fraud and reducing false positives, Fraud Indicator could have a significant positive impact on the cost of doing business in Australia and play a significant role in the fight against fraud and scams."