The Albanese Government is providing the strongest defences against scammers in the world. Landmark legislation establishing the Scams Prevention Framework will be introduced into Parliament today.
Banks, social media platforms and telecommunications companies face hefty fines if they do not take reasonable steps to prevent, detect, disrupt, respond and report scams and attempted scams in their businesses. Victims will have clear pathways to compensation if the business fails to meet the new standards.
The Australian Competition and Consumer Commission (ACCC) will have new powers to direct businesses to take specific steps to keep their customers safe from scammers and the Australian Financial Complaints Authority (AFCA) will be empowered to resolve consumer claims over scams in these sectors.
The Scam Prevention Framework will include fines of up to $50 million for non‑compliance.
Consumers were left to fend for themselves before Labor put big business on the hook for redress if they fail to stop scammers.
Once legislation passes Parliament, the Albanese Government's Framework will:
- Enable the Minister to establish sector‑specific codes. The Codes will impose mandatory obligations on banks, telecommunication service providers, social media platforms and others.
- Mandate these designated sectors to have internal dispute resolution mechanisms that are clear, accessible and transparent for consumers. Currently social media platforms have no mechanism for consumers to raise disputes.
- Allow the Minister to make SPF rules setting out guidance on how to apportion liability at IDR between one or multiple businesses who are at fault to assist victims seek redress.
- Enable a single external dispute resolution (EDR) scheme for scam complaints made under the Framework where a dispute cannot be resolved at IDR.
- Build a mandatory coordinated intelligence sharing ecosystem that requires timely reporting and information sharing across industry and government.
Before Labor came to Government scam losses were doubling every year.
We have turned the tide by investing heavily in scam prevention. We've stood up a National Anti‑Scam Centre and invested over $180 million to tackle scam activity across the economy.
As a result, losses to scams have gone down for the first time since 2016.
The choice facing the opposition and crossbench is simple. Be on the side of Australians and support this bill or enable scammers to continue their scourge.
Quotes attributable to Assistant Treasurer and Minister for Financial Services, Stephen Jones MP
"Over the last year I've spoken to thousands of Australians in cities and towns around the country. They want tough action to protect their money and their information, and these laws deliver.
"We urge the parliament to support this bill to ensure consumers get the protection they need as soon as possible."
Quotes attributable to Minister for Communications, Michelle Rowland MP
"While the telecommunications industry has done some good work in blocking scam calls and scam SMS, there are still too many getting through and leading to consumer losses.
"The Government is already taking action including by legislating an SMS Sender ID register, which will improve the security of SMS from reputable brands.
"The Scams Prevention Framework will help to further strengthen scam defences, and I encourage the telecommunications sector to continue to work closely with the regulator, ACMA, to develop the industry codes that will provide Australian consumers the best protection from the scourge of scams."
