SNEAK PEEK

• NAB limits payments to ‘high-risk’ crypto exchanges amid scam surge.
• Major Australian banks restrict access to digital assets over fraud concerns.
• Australians lost A$221 million to crypto scams last year.

In a strategic move, National Australia Bank Ltd (NAB) has imposed restrictions on certain payments to ‘high-risk’ cryptocurrency exchanges. Significantly, the decision aims to mitigate an alarming surge in cryptocurrency scams. Consequently, NAB has become the latest primary Australian lender to restrict access to digital asset platforms over rising fraud concerns.

Moreover, Chris Sheehan, NAB’s executive for group investigations and fraud, expressed concern over sophisticated scammers. According to him, these scammers are part of organized, transnational crime groups. He further noted that these groups often employ cryptocurrency platforms to transfer stolen funds, frequently to overseas accounts swiftly.

On the same accord, NAB isn’t alone in taking such a step. Its counterparts, Westpac Banking Corp., Commonwealth Bank of Australia, and Australia & New Zealand Banking Group Ltd, have implemented similar measures recently. Hence, this move by NAB aligns with a growing trend amongst Australia’s major financial institutions.

Based on reports, last year, Australians reportedly lost A$221 million ($151 million) due to these fast-proliferating crypto scams. As a result, NAB labeled these scams a rapidly growing security threat.

According to NAB, this is evident as almost half of the scam funds reported to the Australian Financial Crimes Exchange over a recent 30-day period were linked to cryptocurrency. The bank, however, has yet to clarify the specific digital-asset exchanges affected by this decision.

Additionally, Westpac became the first among Australia’s big four banks to introduce new customer protection measures against crypto scams on May 18. On the same day, Binance Australia declared it could no longer provide Aussie dollar deposit services following a decision by payment solutions provider, Cuscal.

Besides this, Cuscal confirmed its primary focus is to protect Australians from financial crimes and scams.

In conclusion, as the popularity of digital currencies rises, banks are diligently increasing their protective measures to safeguard their customers from potential risks. However, it’s crucial to balance the measures to prevent scams with the need to support innovation in the burgeoning crypto market.

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• Source: https://investorbites.com/nab-clamps-down-on-high-risk-crypto-exchanges-amidst-rising-scam-fears/