Time is here to phase out using banks. They aren't there to protect your assets. They aren't there to pay interest for holding your money. They're increasingly irrelevant so many ways.
So, what's the option? Tungsten mattress vaults?
Australia's long-awaited instant bank transfer reform will result in more fraud attempts and fewer theft recoveries according to RSA fraud boffin Tim Dalgleish. The reforms known as the New Payments Platform (NPP) is slated for operation late next year and is designed to push the antipodean banks to innovate, while providing …
If anything, the low fraud rate in 2007 is more of an outlier in that UK data then any increase seen in 2008. In fact, bar 2007, it looks like the fraud in 2008 is exactly on the trend line. Also, the decreases in 2010 and 2011 (despite the graph saying an increase of 24% for 2011?) seem to indicate that the banks managed to adjust a little to the new system.
I suspect the same thing will happen in Australia. Maybe fraud will increase at first, but banks will improve their fraud detection algorithms. If I were a bank, I'd be building a social graph of bank accounts and transactions between them; transfers between distant nodes in the graph are more suspicious and could be combined with machine learning to flag and delay transactions suspected to be fraudulent.
This a doom and gloom article. Where is the balance? The instant payments are intended to foster innovation, better use of capital but there is no mention of the scale of the benefits. Have there been no benefits in the UK? Sure there have. How many parents have help the last minute calls by their progeny to lend them funds to avoid overdraft payments? Just a very small example. Or holding on to assets rather than let banks retain them longer than is necessary 'to combat fraud'.
Even at it's peak 2014 (and bearing in mind the figures are for the *whole* of the UK banking sector) the fraud amounts to GBP60m. A drop in a vast ocean of profits never mind revenue. The actuaries are not going to be worried about 'spikes' like this when they've got losses associated with regular business practices like (mis)selling PPE insurance and libor to be concerned about.
Also, over this time frame banks will have been exposed to other means to defraud them like glaring holes in fundamental software components. Any word on how much of the recent fraud is due to these issues. The article doesn't even suggest such issues may even exist let alone contribute to the problem. No, everything is due to NPP.
So I'm not at all clear what the purpose of this post is. Just a bleat from some with a grudge maybe?
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