National Australian Bank has announced it will prohibit specific cryptocurrency platforms due to the industry’s high risk of scams.
As part of its “bank-wide scam strategy,” National Australia Bank (NAB) unveiled a number of new safeguards against fraud on July 17.
To shield clients from fraud, NAB will also implement blocks on “some cryptocurrency platforms” in addition to stopping millions in payments between March and July 2023.
In the last 30 days, nearly 50% of scam funds reported to the Australian Financial Crimes Exchange were associated with cryptocurrencies.
The independent project, which brings together industry associations, commercial organizations, and law enforcement agencies to combat financial and cybercrime, includes NAB as a participant.
Chris Sheehan, NAB Executive Group Investigations & Fraud, stated in an interview.
And he also made a suggestion that the Binance cryptocurrency exchange would be impacted by NAB’s crypto bans. Sheehan reportedly remarked,
“Our strategy will be consistent with the rest of the industry.”
Other significant Australian banks, such as Westpac and the Commonwealth Bank, are said to have stopped paying Binance over the previous few months.
NAB has invested over $200 million in addressing the issue of fraud, but the arms race persists. Fraudsters, resourced and unbound by policy, legislation, or jurisdiction, exploit loopholes and vulnerabilities to find more breaches.