Version 6 delivers faster, AI-ready lending technology, led by Head of Development Matt Norton to drive future-focused innovation.
Leading the Next Chapter of Lending Technology
read more
When most people think about fraud in lending, they picture the risks at the front end, identity checks, credit assessments, and Know Your Customer (KYC) processes. But the truth is, the real threat often emerges after the loan has already been approved and the money has landed in a borrower’s account. This is where scam protection and scam prevention become critical, ensuring that your customers remain safe beyond the initial approval stage.
In fact, Scamwatch reported that Australians lost more than $174 million to scams in the first half of 2025 alone. While the number of scam reports is falling, the financial impact is rising. For lenders, brokers, and finance companies, this highlights a crucial shift: scam protection after loan approval must be just as important as origination checks to protect both business operations and your customers.
Beyond Loan Settlement: Where the Risks Begin
Once funds are disbursed, your customers become prime targets. Scammers use phishing attacks disguised as repayment requests, attempt to redirect loan funds into fraudulent accounts, or even take over borrower profiles altogether. Payment redirection scams alone caused more than $152 million in losses during 2024. This underlines why scam prevention measures are essential and why ongoing scam protection must be embedded into the lending lifecycle.
The new Scams Prevention Framework (SPF) reinforces this shift. Introduced in 2025, it places responsibility on financial institutions to detect, disrupt, and report scams at every stage. This means lenders must prioritise both compliance and reputational trust by investing in scam prevention strategies that truly safeguard your customers.
Strengthening Security Without Losing Trust
The challenge for lenders is finding the balance between strong scam protection and a positive customer experience. Safeguards such as one-time passcodes (OTPs) or biometric checks can significantly reduce risks, but if overused, they frustrate your customers.
The most successful lenders are applying layered protection… Short delays on suspicious transactions can also provide enough breathing room for manual reviews, catching scams before losses occur. For a deeper look at security features lenders should prioritise, read our guide on essential loan management system security features
Educating Customers: The Human Firewall
Technology creates barriers, but informed borrowers are the first line of defence. That’s why scam prevention must include consistent customer education. Sending scam-awareness reminders via email, SMS, or app notifications helps your customers recognise red flags. Even a simple reminder that “we will never ask for your password or sensitive details by SMS or email” reinforces scam protection at the personal level.
The more often your customers see these reminders, the more confident they’ll be in questioning suspicious requests. Education slows down scammers who rely on confusion and speed, making scam prevention a powerful shield in protecting your customers.
People and Processes Still Matter
It’s not only your customers who face risks. Brokers and frontline staff can become weak points if they lack training. Rapid changes to commission accounts or repeated approvals of suspicious profiles should immediately raise red flags.
That’s why ongoing staff training in fraud detection, scam awareness, and compliance is a vital part of both scam prevention and scam protection. A well-informed team strengthens the safety net for your customers.
Collaboration and Technology: Fighting Scams Together
No lender can rely on scam protection measures alone. Industry collaboration is becoming a cornerstone of effective scam prevention. Platforms like the Australian Financial Crimes Exchange (AFCX) allow institutions to share intelligence in real time, while the SPF sets out clear reporting and dispute resolution obligations.
Technology is also evolving fast. The rollout of Confirmation of Payee (CoP) in Australia is already proving valuable, verifying that account names and BSBs match before a payment goes through. Artificial intelligence is being deployed to detect unusual repayment behaviour, while biometric verification is becoming affordable enough for even smaller lenders and brokers to adopt. Together, these measures create a stronger safety net for both businesses and your customers.
Why It Matters
Scam prevention is no longer optional. It’s a shared responsibility that touches compliance, brand trust, and customer loyalty. When borrowers see their lender or broker taking proactive steps to protect them, it not only reduces fraud losses but also strengthens long-term relationships.
As scams grow in scale and sophistication, the message for 2025 is clear: scam protection isn’t just about ticking compliance boxes, it’s about leadership in the financial sector. Those who act now to embed layered verification, customer education, and industry collaboration will not only protect their customers but also position themselves as trusted partners in an increasingly risky landscape.
Frequently Asked Questions
How does the new Scams Prevention Framework affect smaller lenders and brokers?
While major banks have dedicated fraud teams, the SPF applies equally to smaller players. This means even boutique lenders and brokers must implement detection and reporting processes. For smaller organisations, compliance may involve partnering with trusted technology providers or leveraging shared intelligence platforms such as the AFCX.
What are “red flags” lenders should look out for after a loan is disbursed?
Red flags often include sudden requests to change repayment account details, loan funds being redirected to accounts with little transaction history, or unusual repayment behaviour (such as multiple failed debit attempts). Identifying these signs early can prevent significant losses.
Are customers more receptive to anti-scam education now than in the past?
Yes. With widespread media coverage and the government’s Scam Awareness campaigns, customers are more aware of risks than ever. Lenders that provide clear, timely education through SMS alerts, email reminders, or FAQs in customer portals tend to build stronger trust and loyalty.
What technology trends are shaping scam prevention right now?
Beyond the rollout of Confirmation of Payee, AI-driven anomaly detection and behavioural biometrics are emerging as powerful tools. These systems learn what “normal” customer behaviour looks like and can flag unusual activity in real time, giving lenders an extra layer of protection.