Savings accounts will be 'more secure'

Australian savings accounts may be made more secure online following the demands of one regulator.

The Australian Transactions Reports and Analysis Centre (Austrac) has given eBay subsidiary PayPal Australia until May 2010 to increase security of its service.

It is thought that the move will further prevent access from money launderers and other criminals.

PayPal has agreed to hire an independent body to ensure that it meets the standards set by Austrac.

The firm said it has so far spent $13 million over the last two years in efforts to adhere to the regulations.

John Schmidt, Austrac chief, commented: "We need to be sure that an organisation that has got an [anti-money laundering regime] in place to identify suspicious transactions.

"And those transactions could be a dollar or a million dollars."

This comes as the Australian Competition and Consumer Commission warned people to protect their identity and their money – potentially kept in high interest savings – from online scams.

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