Scam big blow to embanking in Australia
The Borneo Post - Monday, 22 July 2002

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SYDNEY: A scam that Australian police say may have netted millions of dollars has shaken faith in one of the country's largest electronic banking systems. Consumer groups have urged almost three million Australians registered for Internet and telephone banking to check their accounts for irregularities following security breaches involving the BPay electronic funds transfer system. 

Police investigating thefts from the accounts of more than 100 bank customers since February arrested three people late last week and
expect to add to the number as their inquiries continue. Detective Acting Inspector Michael Gerondis of Strike Force Windrush said individual customers had lost up to A$150,000 dollars (85,000 US) in the scam. Gerondis, who described the fraud as "not overly sophisticated", said accounts at Australia's larger banks were the most affected.

He declined to say if the fraud was an inside job and admitted proceeds could run into million of dollars. The Australian Consumers Association (ACA) said banks were obliged to ensure their customers' funds were safe, given the pressure they had exerted by increasing fees to encourage people to adopt electronic banking. "There's no excuse for not putting the resources into ensuring security for their customers," ACA finance policy officer Catherine Wolthuizen said.

She said customers should examine their bank records for unauthorised transactions and ensure access passwords were kept confidential and changed regularly. The Australian Bankers Association said it was treating the allegations seriously and fully cooperating with police. - AFP