Personal responsibility rises in financial transactions

In a bold shift shaking up the financial sector, consumers are being warned that if you properly authorise a payment - even to a scammer - the responsibility can be deemed to be yours.

The move reinforces a hardening stance on personal accountability in an era of increasingly sophisticated scams, reviving the age-old warning: Buyer beware.

BDO forensic services partner, Stan Gallo, said the stance recently adopted by many leading institutions is setting a precedent.

"The principle of 'buyer beware' has never been more relevant. In an era where digital transactions are commonplace, individuals and businesses must remain vigilant and proactive in protecting their financial interests. The responsibility for security cannot be outsourced," Stan said.

The financial landscape is evolving rapidly, with digital platforms and online banking becoming integral to everyday transactions. However, this convenience comes with risks.

Cybersecurity threats, phishing scams, and fraudulent activities are on the rise, making it imperative for individuals to stay informed and cautious.

"Customers need to understand the potential risks associated with digital transactions and take necessary precautions. This includes independently verifying the authenticity of payment recipients, using secure networks and multi-factor authentication options, and being wary of unsolicited communications," Stan said.

While banks and financial service providers are continuously enhancing their security protocols, including providing access to tools to protect their clients, the onus remains on customers to ensure they are not falling prey to scammers seeking to trick them into authorising and processing payments.

"Financial institutions are investing heavily in advanced security technologies to protect their customers. However, these measures are only effective when customers also play their part. It is a collaborative effort," Stan said.

The recent stance by banks reinforces the notion that once funds are willingly transferred, the customer can be held liable for the transaction.

This underscores the need for individuals to exercise due diligence and caution in their financial dealings. In an environment where scams are increasingly sophisticated and relentless, complacency is costly.

Staying informed, alert and in control isn’t just smart - it’s essential

For media enquiries:
Tate Papworth 
Manager, Media 
E: Tate.Papworth@bdo.com.au 
Ph: 0433411189