NAB Cracks Down On Crypto Firms Halting $270M In Customer Payments
National Australia Bank (NAB) intervened in millions of payments to “high-risk” crypto platforms between March and July. This comes after Australians lost over $221 million to crypto scams in 2022.
Key Takeaways
- 50% of scam funds registered with the Australian Financial Crimes Exchange in a recent month had ties to cryptocurrency
- NAB is bringing in new blocks on certain crypto platforms where scams are widespread and Binance may be one of the impacted exchanges
- 40% of Australians would accept slower payments in return for greater protection from scams
NAB has introduced new measures to curb the rising threat posed by crypto scams. This includes in-app payment prompts, limiting the use of links in unexpected messages, and cracking down on spoofing.
In-app payment prompts are proving particularly effective, with 12% of transfers abandoned upon receipt of the real-time notification. This equates to $290,000 in daily payments being deserted.
The Bank also saw a 22% fall in spoofing scams between January and May after collaborating with telecommunication providers.
“We Need To Do Everything We Can To Stop The Crime Before It Happens.”
NAB Executive for Group Investigations and Fraud, Chris Sheehan, commented: “While we’re focused on making banking simple and digital, we’ve added this extra friction to help alert customers to warning signs.”
Sheehan went on to say: “We need to do everything we can to stop the crime before it happens.”
Speculation Mounts Regarding Affected Crypto Firms
Some commentators believe Binance is one of the crypto exchanges considered “high-risk”, and thus could be affected by the measures.
This comes after a NAB executive stated: “Our approach is going to be consistent with the rest of the industry”, with several other major Australian banks, including Westpac, also halting payments to the crypto firm recently.
Whilst NAB itself has stopped short of naming names, the message is clear – crypto exchanges pose a significant risk to retail investors.
With this in mind, we may see individuals increasingly turn to traditional brokers for access to digital currencies through vehicles like crypto CFDs. These derivatives allow traders to speculate on rising and falling prices without some of the security risks associated with buying and storing digital tokens like Bitcoin.
Best Crypto Brokers
We recommend these brokers for traders seeking crypto derivatives in a secure trading environment:
