What Is The FRX Platform?

Introducing the Fraud Reporting Exchange (FRX)

The Australian Federal Government is launching the FRX platform to help combat the rising number of fraudsters targeting Australians and their bank accounts. In 2022 alone Australians lost $3bn to scams. The platform seeks to create a efficient way for banks to communicate and freeze fraudulent transactions.

How it works?

By enabling banks to share information about scams in real time, it provides a centralised location for fraud reporting making it easier for banks to identify and freeze suspect bank accounts or transactions. So far 17 banks, including the big four, having signed up to the platform, with a trial showing the time to resolve scam cases dropped by more than half.

Is it a Complete Solution?

Unfortunately the platform does not prevent the initial fraud from occurring, acting more a reactive tool to potentially prevent further fraudulent transactions from being processed. “The sooner that banks know about a fraud, the sooner they can take swift action to try to halt the payment before it gets to the scammers.” Australian Banking Association’s (ABA) chief executive, Anna Bligh, said. As such it may just slow down the rather than completely stop the scammers from draining bank accounts.

It also relies on banks to use the tool effectively and act swiftly to shut down or freeze suspect accounts before further payments are processed. Consumer advocates say the digital platform still puts the onus on customers to detect and report scams and such will still remain an significant liability for individuals and businesses to navigate payments safely.

Our Solution

This is where a tool like GOTI is necessary for businesses to provide confidence that their payments are going to verified and correct suppliers as well as their own payment requests are secure and non-penetrable by fraudsters. Stopping illegitimate transaction from actually happening is the only way to completely stop funds from landing in criminals hands. By leveraging Artificial Intelligence and Machine Learning GOTI swiftly streamlines this process combating fraud and providing users with transaction certainty.