Commonwealth Bank unveils account ‘name and shame’ system to tackle email scams

Commonwealth Bank has announced a new security feature which highlights account names when users make a first-time payment, saying the addition will cut down on scams — particularly those using hacked business accounts.

Launching in late March, the bank’s new NameCheck feature will provide an account’s name when users enter its BSB and account number for the first time, allowing payers to judge if the details match their expectations.

The bank says the feature will cut down on business email compromise scams, where hackers gain access to a legitimate businesses’ communications channels and send false billing details to unsuspecting victims.

“When they transfer money online many people assume the intended recipient’s account name is checked as well as the BSB and account number, but in most cases this is not possible,” said CBA’s group executive retail banking Angus Sullivan.

“We now have the data and technology to improve this.”

The feature will roll out in the CommBank app, along with the NetBank and CommBiz portals.

In addition, CommBank says it will launch a feature allowing users to determine if a caller really is a bank representative.

Called CallerCheck, the feature will show a pop-up message in a user’s CommBank app when a staff member is attempting to call, a move CBA says will reduce uncertainty over phone communications.

In a statement, Consumer Action CEO Stephanie Tonkin said CBA’s new additions are welcome and urged competitors to roll out similar features.

“We call upon other banks to follow suit, and if CBA can help them roll out the necessary technology, then they should do so,” she said.

“Scam prevention should be a shared goal and not a point of competition between banks.”

However, Tonkin said the banks should go even further to protect users, including reimbursing them for scam losses processed through official bank channels.

“It is completely unfair that individuals bear the full losses associated with scams when scammers must have access to bank accounts to succeed,” she said.

“The current lack of financial incentive for the banks to fix this has meant that improvements like this are too slow to be implemented across the sector.”

Banks and consumer groups have good reason to focus on scam losses after the Australian Competition and Consumer Commission claimed losses in 2022 could extend to $4 billion.

In 2021, business email compromise scams cost an estimated $128 million alone.

With the goal of cutting down on those business-to-business losses, the government is focused on its own scam-preventing eInvoicing initiative.

The eInvoicing scheme allows businesses to send and complete invoices through their accounting software, eliminating the need for physical paperwork and cutting the risk of fraudsters intercepting payments.

The Australian Taxation Office says eInvoicing can also slash the average cost of fulfilling an individual invoice by $20 thanks to time savings.