Home Community Insights Bendigo Bank blocks high risk crypto payments to protect customers from scams

Bendigo Bank blocks high risk crypto payments to protect customers from scams

Bendigo Bank blocks high risk crypto payments to protect customers from scams

Bendigo Bank, one of Australia’s largest banks, has announced that it will block certain crypto-related transactions that are deemed to be high risk, in order to protect its customers from falling victim to scams and frauds.

The bank said in a statement that it has identified a number of crypto platforms and merchants that have been involved in fraudulent activities or have received a high volume of customer complaints. These include some crypto exchanges, wallets, mining services, gambling sites and online casinos.

The bank said that it will not process any payments to or from these platforms and merchants and will notify its customers if they attempt to do so. The bank also advised its customers to exercise caution when dealing with crypto transactions, and to report any suspicious or unauthorized activity on their accounts.

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The bank said that the decision was made after careful consideration and consultation with industry experts and regulators, and that it was in line with its commitment to provide a safe and secure banking environment for its customers.

The bank said that it will continue to monitor the crypto landscape and review its policies as needed, and that it will support legitimate and regulated crypto businesses that comply with the Australian laws and standards.

The bank’s move comes amid a surge in crypto-related scams and frauds in Australia and around the world, as more people are attracted to the potential of digital currencies. According to the Australian Competition and Consumer Commission (ACCC), Australians lost over $70 million to crypto scams in 2020, a 600% increase from the previous year.

The ACCC warned that scammers are using various tactics to lure people into investing in fake or unregulated crypto schemes, such as impersonating celebrities, offering fake investment opportunities, hacking social media accounts, sending phishing emails and texts, and creating fake websites and apps.

The ACCC urged consumers to do their research before investing in any crypto-related venture, and to avoid any offers that sound too good to be true, such as guaranteed returns, low fees, free trials or bonuses. The ACCC also advised consumers to check the credentials of the crypto platforms and merchants they deal with, and to only use reputable and regulated services that have a valid Australian Business Number (ABN) and are registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC). The ACCC also encouraged consumers to report any crypto scams they encounter to Scamwatch, a website that provides information on how to recognize, avoid and report scams.

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