The ACCC welcomes the passage of the Scams Prevention Framework Bill in Parliament today.
This world-first legislation enhances protections across the economy by setting out consistent and enforceable obligations for businesses in key sectors where scammers operate.
"The financial crime type, scams, present an unacceptable threat to the Australian community and have had a devastating impact on hundreds of thousands of Australians," ACCC Deputy Chair Catriona Lowe said.
"This Bill is a critical step in the fight against scams - creating overarching principles that all members of designated sectors must comply with. We know scammers will exploit weak links in the system - so these principles are key to a consistent approach."
Under the new legislation, the ACCC will closely monitor regulated entities' compliance with principles to prevent, detect, disrupt, respond to and report scams.
The Scams Prevention Framework empowers the ACCC to investigate potential breaches and take enforcement action where entities do not take reasonable steps to fulfill their obligations under these principles.
Businesses that do not meet their obligations under the Framework can face fines up to $50 million.
"Individuals have been bearing the brunt of the responsibility to combat scammers for too long," Ms Lowe said.
"While the steps taken by some organisations over the last few years are welcomed, the Framework provides the opportunity for joint effort across government and industry to develop solutions to scam challenges and for consumers to access meaningful redress."
"Importantly, the Framework enables consumers to seek redress from regulated businesses when those businesses have not met their obligations," Ms Lowe said.
Banks, certain digital platforms, including social media, and telecommunications providers will be the first sectors required to comply with the legislation.
The ACCC is a strong supporter of mandatory industry scams codes and, through the National Anti-Scam Centre, has already begun preparing incrementally for the Framework.
"In reaching this important milestone, we acknowledge that there is considerable work ahead to implement the Framework, including the formal designation of sectors, development of sector codes, consumer and industry guidance," Ms Lowe said.
"We will continue to work closely with government, fellow regulators, industry and community agencies to make sure these elements of the Framework work for all stakeholders, most especially consumers."
Background
The ACCC runs the National Anti-Scam Centre, which commenced on 1 July 2023, and Scamwatch service. The National Anti-Scam Centre is a virtual centre that sits within the ACCC and brings together experts from government, law enforcement and the private sector, to disrupt scams before they reach consumers.
The National Anti-Scam Centre analyses and acts on trends from shared data and raises consumer awareness about how to spot and avoid scams.
The ACCC, through the National Anti-Scam Centre, has already been partnering with stakeholders across the scams ecosystem to share intelligence and information to detect and disrupt scams on a voluntary basis. The Framework will significantly boost the contributions from industry and require designated businesses to share scam intelligence with the ACCC.
The new Scams Prevention Framework will be critical to cutting off scammers before they can reach Australians.
Under the Framework, the ACCC will also enforce the digital platforms sector scams code and will take enforcement action where digital platforms breach their obligations under this code.
The Australian Securities and Investments Commission will be the regulator for the banking sector code and the Australian Communications and Media Authority will be the regulator for the telecommunications sector code. Regulators have in place processes to work together to help ensure the right action by the right regulator at the right time.
The ACCC supports the establishment of a single external dispute resolution body under the new Framework and looks forward to working with the Australian Financial Complaints Authority (AFCA).
The ACCC's submissions to the Treasury Exposure Draft, which includes further analysis of the reform can be found online.
How to spot and avoid scams
STOP - Don't give money or personal information to anyone if you're unsure. Scammers will create a sense of urgency. Don't rush to act. Say no, hang up, delete.
CHECK - Ask yourself could the call or text be fake? Scammers pretend to be from organisations you know and trust. Contact the organisation using information you source independently, so that you can verify if the call is real or not.
PROTECT - Act quickly if something feels wrong. Contact your bank immediately if you lose money. If you have provided personal information call IDCARE on 1800 595 160. The more we talk the less power they have. Report scams to the National Anti-Scam Centre's Scamwatch service at scamwatch.gov.au when you see them.
