The passing of the Scams Protection Framework through Parliament today is an important step towards ensuring all Australians - including older Australians who are the most impacted - are given greater protection against scams.
COTA Australia - the leading advocacy organisation for older people - Chief Executive Officer, Patricia Sparrow said urgent action was essential, with older Australians losing $99.6 million to scammers in 2024.
"Older Australians are falling victim to scam activity at alarming rates, with over 62,000 reported incidents resulting in nearly $100 million in losses last year. These sophisticated scams are having a devastating impact on retirement savings," Ms Sparrow said.
"This framework will ensure banks, telecommunications companies and social media platforms are held accountable for preventing scams and properly compensating victims when prevention fails, which is crucial.
Ms Sparrow said it's important to note the concerns raised at the Senate Inquiry into the issue, including potential complexity around compensation.
"There's a clear need to ensure subordinate legislation, industry codes and the external complaint resolution process is established in a way that ensures compensation will, in practice, be achievable under the scheme.
Ms Sparrow said it is also crucial that those impacted are not just consulted about the next phases, but that the next phases deliver practical protections for Australians.
"While we welcome the Australian Financial Complaints Authority commitment to consult with all stakeholders during the industry design phase, we must ensure this translates into real, practical protections.
"With thousands of older Australians losing their savings each year, we need a system that delivers genuine accountability and accessible compensation pathways.
"The scheduled review in 2027 will be a critical checkpoint to assess whether these measures are delivering the protection older Australians deserve, or whether stronger safeguards are needed. We cannot allow another generation of retirees to lose their life savings to scammers."
"This isn't just about protecting older people - it's about ensuring all Australians can participate in the digital economy with confidence, knowing their financial wellbeing is safeguarded."
