Customer security

Our approach

Maintaining customer confidence in electronic banking

Our electronic banking facilities are a major part of our commitment to provide convenient banking services for customers. However, facilities are only convenient when customers feel confident and safe about using them. We utilise advanced security systems to detect suspicious activity across Internet and Phone Banking and cheque, credit and debit card transactions. We continually evaluate the performance and suitability of these systems to ensure that our customers can place complete confidence in our facilities and reduce the risk of unauthorised transactions resulting from fraudulent activity.

About our customer security measures

We have a number of measures in place to give our customers the highest available level of security for their Internet Banking transactions. These include:

  • a sophisticated fraud detection system that flags suspicious activity
  • data encryption to prevent unauthorised access to personal information
  • a firewall to prevent unauthorised network access
  • automatic time-outs on internet banking sessions.
  • Find out more about our Internet Banking security measures

For Business Banking customers, we require ‘second-factor’ authentication for online transactions. This system involves a key ring sized security device that generates a new six-digit number every 60 seconds. Whenever a customer transacts with a third party via Internet Banking, the code displayed on the screen of their security device must be entered, this is then verified as part of the transaction approval process.

If a customer becomes a victim of fraud, ANZ guarantees they will be reimbursed for any unauthorised transactions, as long as they have complied with the Electronic Banking Conditions of Use.

About our electronic monitoring systems

In Australia and New Zealand, we use Fiserv’s Fraudlink “Carreker” system to monitor Internet and Phone Banking transactions as well as cheque transactions. “Carreker” identifies transactions and behaviour that is inconsistent with a customer's previous activity and may indicate fraud. This allows us to promptly identify unauthorised transactions occurring on a customer’s accounts; intervene where possible; and also ensure that any new or emerging trends of attempted fraud are detected, so that we can take immediate steps to minimise the impact of these.

ANZ's “Falcon” system monitors all consumer and commercial credit card transactions for fraudulent activity in Australia, Singapore, Taiwan, Fiji, Papua New Guinea, Vietnam, Cambodia, and Indonesia. We apply an equivalent system called “Proactive Risk Manager” (PRM) in New Zealand. Both systems use artificial intelligence (neural networks) to look for anomalies in customer spending patterns, and provide these to a dedicated team of fraud operators for further review, and follow-up if required. Additionally, in Australia we use the “Falcon” system to monitor suspicious or unusual ATM or EFTPOS transactions.

2011 results

Throughout 2011, we continued to implement a cycle of continuous review over our Fraud Detection, Prevention, and Resolution capabilities, with significant uplift achieved in a number of key areas; most notably across our Electronic Banking Fraud Detection and Customer Resolution measures.

The future

We will continue to introduce new fraud prevention capabilities in 2011 with the aim of reducing online fraud events, providing a more secure environment, and improving the overall customer experience for those affected by Fraud.

2010 results

In addition to the refinement of our fraud detection processes, this year we introduced several new and innovative fraud management services which focus on disrupting the fraud cycle ‘upstream’, by intervening in attempts to harvest and misuse customers' log-on credentials.

We track the performance of our fraud detection system through losses incurred as a result of fraudulent activity. The fraud loss rate for 2010 was well below forecast levels.

The future

We will continue to introduce new fraud prevention capabilities in 2011 with the aim of reducing online fraud events, and providing a more secure environment and an improved customer experience.

2009 results

We track the performance of our fraud detection system through losses incurred through fraudulent activity.

Continual refinements to our fraud detection processes saw an over 50% reduction in losses associated with Internet Banking fraud compared to the same period last year.

ANZ's losses from fraudulent activity on credit card accounts reduced by 20% in 2009.

The future

ANZ is introducing stronger authentication measures to Internet Banking in early 2010 to provide a more secure online environment for our customers. Further enhancements to our fraud detection system will be implemented in the coming 12 months.

2008 results

A major innovation in 2007/08 was the introduction of a two-factor authentication system for customers using ANZ Internet Banking for Business.

The system involves a key ring sized Security Device that generates a new six digit number every 60 seconds. Every time a customer transacts with a third party via Internet Banking, they enter the Code displayed on the screen of their Security Device, which is then verified as part of the transaction approval process.

The future

Constantly changing technology means we must continue to find new ways of protecting our customers from unauthorised transactions.