The Bank of Queensland (BoQ) Group has announced the deployment of new behavioural and biometric analysis technologies to help stamp out fraud and scam activity.
Among the newly introduced security features include a “state of the art” behavioural and facial biometric identification check, designed to prevent account muling.
According to the BoQ, the check, which is completed by customers during onboarding and boasts a “98% detection rate”, has significantly reduced muling activity (where customers accounts are, knowingly or unknowingly, used to move or launder illegally obtained funds).
As well, in a bid to crack down on scam and illicit financing activity, the bank has imposed a monthly transaction limit of $5,000 per customer on payments to known cryptocurrency exchanges.
The limit is set to be in force from May, with customers notified when this transaction limit is reached.
Cryptocurrencies remain a key facilitator of illicit financing activity, with criminals able to move vast sums of money through anonymised exchanges without being detected by law enforcement or anti-money laundering checks. Fraudsters in many cases also prefer transacting with cryptocurrencies (for instance, investment scammers asking for payment in crypto), with the inherent pseudonymity of these digital coins making it difficult for law enforcement and banks to recover lost funds.
BOQ said it “continues to monitor alerts for suspicious activities, particularly those involving elderly customers”, noting that its Financial Crimes Operations team has reviewed more than 20,000 cases within the last six months.
BoQ group general manager financial crime operations Ben Hargreaves said the “new cryptocurrency transaction limits and state-of-the-art behavioural and facial biometric capabilities are integral to our digital strategy, ensuring our customers are protected”.
In alignment with banking sector’s Scam Safe Accord, BoQ has also established a group-wide anti-scams strategy, which it says targets “critical opportunities for protecting our customers from fraud and scams”.
The challenger bank has previously come under the crosshairs of prudential regulator APRA for its acknowledged gaps in anti-money laundering and counter-terrorism financing capabilities.
In 2023, BoQ was slapped with a $50 million risk capital overlay by prudential regulator APRA and agreed to a court enforceable undertaking (CEU) to rectify recognised gaps in risk management and risk culture.
“Fraud and scams continue to pose a serious threat to Australians’ financial security,” Hargreaves said. “At BOQ Group, we are dedicated to staying ahead of these threats by investing heavily in advanced technologies.
“We are proud of the progress made and remain committed to providing a safe and secure banking environment.
BoQ said it plans to explore further uses for its newly deployed behavioural and biometric capabilities, noting it will also collaborate closely with the telecommunications sector and review current payment limits.
