Real-time payments are new fraud risk for Australian customers
A real-time payments system is launching in Australia this year and banks are tightening their anti-fraud measures in readiness. The New Payments Platform will allow customers from different banks to transfer money in real time, rather than payments taking up to three days. Although giving more convenience to customers, the instant settlement of real-time payments means banks no longer have time to investigate suspicious transactions, which could mean a rise in fraud.

Australian consumers are predicted to become more attractive targets for fraudsters and scammers when a $1 billion real-time payments system launches later this year, prompting banks to beef up their anti-fraud defences.

A new system coming in 2017 will for the first time allow customers of different banks to transfer money in real-time, rather than payments taking up to three days, as occurs now.

While promising greater convenience for customers and businesses, switching to real-time payments can also increase the rise of fraud. That is because when funds settle instantly, banks will no longer have a day or more to investigate and stop payments that appear suspicious.

Albert van Wyk, the head of fraud at information agency Experian, said he expected scammers to step up their attempts to get consumers' private financial information – used to commit fraud – when Australia moved to a real-time payment system under the New Payments Platform (NPP).