The banks are stepping up their efforts in the scam detection and prevention department, launching a new reporting service designed to facilitate rapid notification of fraudulent payments transferred or en route to another bank. The Australian Banking Association issued a media release yesterday saying 17 banks are already onboard or in the process of joining the new Fraud Reporting Exchange. The exchange is owned and operated by the Australian Financial Crimes Exchange, a body funded by banks. Features of the new facility are claimed to be near real-time reporting of fraudulent transactions between member banks, secure and tracked communications between banks, shared intelligence and faster return of funds (where possible). AFCX managing director David Pegley said a trial of the new platform showed that the time to resolve most scam cases dropped by more than half. ABA chief executive Anna Bligh said in a statement: “Given every minute can be crucial in disrupting scams, the launch of the exchange is a major development. It means more and more scammers are going to hit a brick wall. It adds to the arsenal of anti-scam initiatives underway.”  The launch of the Fraud Reporting Exchange follows news that the ACCC plans to open the new Anti-Scam Centre in July, which will involve the banks in a more co-ordinated effort to stop scam activity.  The government announced in the budget last week that it will spend A$58 million over three years to establish the centre within the ACCC to improve scam data sharing and facilitate faster and more effective responses. The banks’ move also follows an ASIC report last month that criticised the major banks for their scam detection and prevention efforts. ASIC said the banks detected and stopped a low proportion of scam payments made by their customers, in the order of 13 per cent. Reimbursement or compensation was paid in only around 11 per cent of the cases where there was a scam loss. It said scam losses for major bank customers last year exceeded $550 million and affected 31,700 customers. ASIC said scam victims were not always well supported by their banks.