- Banking Security
- Fraud Prevention
- Financial Technology
Bankwest reports 57% reduction in scam losses through innovative banking technology, while warning of evolving fraud tactics targeting different age groups across Australia.
Bankwest Achieves Significant Reduction in Customer Scam Losses
Bankwest has demonstrated remarkable progress in protecting customers from financial fraud, reporting a substantial 57% decline in scam losses during the 2025 financial year. This achievement comes as the bank implements cutting-edge technology solutions designed to identify and prevent fraudulent activities before they impact customers.
The positive results emerge during Scams Awareness Week, highlighting the bank's commitment to customer protection whilst acknowledging the evolving nature of financial crime. Despite these improvements, security experts warn that scammers continue to adapt their approaches, developing increasingly sophisticated methods to target different demographic groups across Australia.
Phishing Remains the Dominant Threat
Analysis of the latest scam data reveals that phishing attacks continue to represent the most significant threat to banking customers, accounting for 54% of all reported cases. These deceptive communications, designed to steal personal information and banking credentials, have maintained their position as the preferred method for criminals targeting Australian consumers.
The persistence of phishing scams reflects their effectiveness across multiple communication channels, including email, text messaging, and social media platforms. Financial institutions continue to invest heavily in educating customers about recognising and avoiding these sophisticated attempts to compromise their financial security.
Relationship and Investment Scams Show Concerning Growth
While overall scam losses have decreased, certain categories have experienced alarming increases that warrant particular attention. Relationship scams have surged by 110%, now representing 9% of all reported cases. These emotionally manipulative schemes exploit personal connections and romantic relationships to extract money from unsuspecting victims.
Investment scams continue to pose significant risks, particularly for Australians aged 55-64, where they account for 47% of all cases within this demographic. These sophisticated schemes often promise unrealistic returns and exploit the retirement planning concerns of older Australians, making them particularly vulnerable to financial exploitation.
Age-Specific Scam Patterns Emerge
Research conducted by Bankwest reveals distinct patterns in how different age groups experience financial fraud. Younger Australians, whilst representing only 6% of total scam cases, face particular exposure to phishing attacks. Among 18-24 year olds, phishing incidents account for 77% of losses, representing a significant increase from 49% in the previous year.
The data demonstrates clear age-related vulnerabilities across different scam types. Investment scams predominantly target older Australians, with the highest concentration among those aged 55-64 years, followed by individuals over 65 who experience these scams in 29% of cases. Relationship scams show particular prevalence among middle-aged Australians, specifically those between 45-64 years.
Emerging Scam Methods Require Continued Vigilance
Beyond the traditional phishing and investment schemes, Bankwest has identified several emerging fraud methods that pose ongoing risks to customers. Payment redirection scams represent a particularly sophisticated threat, where criminals impersonate legitimate businesses or settlement agents to redirect funds to fraudulent accounts.
Remote access scams have also gained prominence, involving criminals who trick victims into providing control of their devices through deceptive technical support scenarios. Additional threats include penalty and threat scams, unexpected money offers, and employment scams that often involve turning victims into unwitting money mules for criminal organisations.
Innovative Technology Solutions Drive Protection Improvements
Bankwest's success in reducing scam losses stems from implementing several innovative technology tools throughout the past year. The NameCheck feature, integrated into the Bankwest App and Online Banking platform in June 2024, has proven remarkably effective with over 2 million uses and more than 250,000 click-backs, contributing to a 35% reduction in payment redirection scams.
The Check-it system, launched in November, provides real-time digital alerts for potentially suspicious transactions. This proactive approach has generated more than 42,000 alerts, enabling customers to verify legitimate transactions whilst blocking fraudulent attempts. Virtual card technology has also gained significant adoption, with customers generating over 53,000 unique temporary card details for enhanced purchase security.
Industry Leadership in Customer Protection
Philippa Costanzo, Bankwest's head of customer trust and security, emphasises that protecting customers represents a fundamental component of the bank's digital-first strategy. The bank's approach recognises that scammers employ targeted strategies for different generational groups, with those aged 55 and above remaining heavily targeted, accounting for two-thirds of all cases.
The concerning rise in relationship scams particularly troubles security experts, as these schemes increasingly exploit emotional vulnerabilities across all Australian age groups, including younger demographics in the 25-34 age bracket. This trend highlights the sophisticated psychological manipulation employed by modern financial criminals.
Implications for Property and Finance Professionals
These developments carry significant implications for mortgage brokers and property finance professionals who work closely with clients managing substantial financial transactions. Reduced scam exposure helps preserve client savings, deposits, and borrowing capacity whilst minimising financial disruption that could affect loan serviceability assessments.
Settlement processes and property transactions frequently become targets for payment redirection scams, creating particular responsibilities for brokers to educate clients about verifying payment details and maintaining vigilance regarding suspicious communications. The concentration of scam activity among older Australians also emphasises the importance of facilitating intergenerational discussions about financial safety and security protocols.