Customer security - Corporate Responsibility

Customer security

Maintaining Customer Confidence in Electronic Banking

ANZ's advanced electronic banking facilities are a major aspect of our commitment to provide convenient banking services for customers. However, facilities are only convenient when customers feel confident and safe about using them.

That's why we have led in implementing, evaluating and refining advanced security systems to ensure that customers can place complete confidence in our internet banking and credit card systems, and to minimise losses due to fraud.

Protecting Customers Online

ANZ has 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

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

Falcon: Preventing Credit Card Fraud

ANZ's "Falcon" system monitors online credit card transactions in near real time. Falcon uses artificial intelligence (neural networks) and in-house developed rules to look for anomalies in customer spending patterns, and provides these to a dedicated team of fraud operators.

The 24-hour system monitors activity on all ANZ issued credit cards as well as our white-label portfolio (Aussie Low Rate MasterCard). Similar systems are in place to cover ATM and EFTPOS transactions.

Case study - Award-Winning Fraud Detection
ANZ received the Innovation in Security and Fraud Management award at the 2007 Financial Insights Innovation Awards for our Fraud Detection System. FraudLink BillPay is designed to identify and flag potentially fraudulent Internet Banking transactions, allowing ANZ to take action to minimise any potential loss to customers. The system has cut ANZ's Internet Banking fraud losses by 40%. ANZ assisted Carreker Corporation in developing the system, which is now being offered to other banks.

Case study - Award-Winning Fraud Detection

ANZ received the Innovation in Security and Fraud Management award at the 2007 Financial Insights Innovation Awards for our Fraud Detection System.

FraudLink BillPay is designed to identify and flag potentially fraudulent Internet Banking transactions, allowing ANZ to take action to minimise any potential loss to customers. The system has cut ANZ's Internet Banking fraud losses by 40%.

ANZ assisted Carreker Corporation in developing the system, which is now being offered to other banks.

Progress in 2008

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.

Find out more about Two-Factor Authentication

The success of the Falcon credit card security system is measured by fraud loss. Over the last 12 months ANZ's average fraud loss on credit card transactions has been below 2.03 basis points - significantly less than the average loss of Australia's four major banks (3.74 basis points).

The future

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