Banks welcome budget’s cyber security funding

As part of the federal budget, Treasurer Jim Chalmers announced funding towards health, aged care, the National Disability Insurance Scheme (NDIS), defence, affordable housing and cyber security.

It comes as cyber crime is estimated to cost the Australian economy more than $30 billion a year, according to credit group Savvy, marking it one of the greatest risks facing the country’s 2.3 million small businesses.

Mr Chalmers said the government would commit to a “long overdue” National Anti-Corruption Commission.

Almost $10 million will be given to the Australian Competition and Consumer Commission for initial work on the establishment of a National Anti-Scam Centre, over four years from 2022–23.

In addition, the government will provide $12.6 million over four years from 2022–23 to combat scams and online fraud to protect Australians from financial harm.

This measure “delivers on the Government’s election commitment” in the Plan for a Better Future.

The Australian Banking Association chief executive Anna Bligh welcomed the Treasurer’s first budget in light of the economic headwinds and uncertainty forecast.

Ms Bligh said the budget was set against a “worsening global economic outlook, with many risks weighing on the economy”.

“Against this backdrop, the Government has laid the foundations to put Australia on a solid footing, whilst continuing support for important initiatives,” Ms Bligh said. 

“The Government’s commitment to establish a national scams centre and review managed investment schemes is an overdue and very welcome investment in protecting customers from financial harm.”

The association, alongside other industry bodies, has been working closely with the government in the wake of the Optus breach to tighten authentication measurements with customers.

Banks buckle down on cyber security

Westpac CEO Peter King said banks invest heavily in systems to protect customers and the financial system, including significant investment towards building resilience including against frauds and scams.

But added it was important for customers to “remain on the lookout for scammers”.

In addition, the Commonwealth Bank of Australia (CBA) and Telstra recently teamed up with the Council of Small Business Organisations Australia (COSBOA) in a new initiative to “help protect small businesses from cyber threats and scams”.

COSBOA’s Cyber Wardens pilot program aims to upskill small businesses by giving them the tools needed to stay safe online, through a “free and easy to use” accredited e-learning platform.

CBA’s group executive, business banking, Mike Vacy-Lyle, said the program will help “demystify cyber safety, instill a cyber-mindset and empower small businesses” to identify and manage cyber threats.

Further, the Westpac Group recently announced the launch of a new financial crime hub, which opened on Tuesday (18 October) and brings together 540 financial crime specialists, joining 2,800 total Westpac employees relocating to Western Sydney.

The hub will play a “key role in educating customers to help them protect themselves and their money”, the federal government endorsed. 

[Related: Budget 2022-23: What you need to know]