Albanese Labor Government taking strong action to end scams in Australia 

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The Senate Economics Committee today examined the Scam Prevention Framework, a whole-of-economy initiative to protect Australians and small businesses from scam-related financial losses. 

The Framework requires companies to protect their consumers, prevent scams and provides redress when companies fail to protect consumers. It will do this through: 

  • Mandatory obligations for banks, telecommunications companies, and digital platforms to take proactive steps in preventing scams from reaching Australians and small businesses. 
  • Utilising the Australian Financial Complaints Authority as a dispute resolution body with powers to require reimbursement to victims.  
  • Hefty penalties of up to $50 million for businesses failing to meet these obligations. 

The new framework is a direct response to the alarming rise in sophisticated scam-related incidents and is aimed at making Australia the toughest country in the world to scam.  

The Scam Prevention Framework is an election commitment, and a cornerstone of a broader anti-scams policy agenda that is successfully reducing annual scam losses for the first time in nearly a decade.

The Committee report will be tabled on February 3.
 

Quotes attributable to Senator Jess Walsh: 

“Today we heard our Scam Prevention Framework is a gamechanger. 

“Without these reforms, its expected scam losses would increase to $6 billion within a decade.  

“This Government’s focus on scams has seen losses decline for the first time in a decade, and the Scams Prevention Framework will reduce losses even further.” 

“Scams affect so many Australians, and their losses are more than financial. This framework will minimise harm and provide support not currently available.” 

 

Quotes from witnesses: 

CHOICE, CEO, Ashley de Silva: 

“Every year without obligations means billions in scam losses. For this reason, we urge the committee to recommend that the bill be passed as a matter of priority next month. If this doesn’t happen more consumers will suffer scam losses due to this inaction.”

Australian Banking Association, CEO, Anna Bligh: 

“The approach starts with the principle that if you want to stop scams, you need to start with where the scam starts. 

“It shouldn’t matter what telco you use or what social media platform or who you bank with, those are choices that Australian consumers should be allowed to make with the full confidence that those companies will be under certain obligations to do everything reasonable in their power to stop scammers from getting to those customers.” 

 
Digital Industry Group Inc, Managing Director Sunita Bose: 

“I welcome the Government’s focus on the ecosystem approach because every story of a scam has a complex attack chain. Scammers, in order to be successful, need to build up work exploiting various services that Australians use every day.” 

 

Australian Financial Complaints Authority, CEO, David Locke: 

“AFCA strongly support the establishment of a whole of ecosystem response to scams as proposed. Importantly, this framework brings in the sectors needed to effectively disrupt and prevent the proliferation of scams. 

“We support the urgent passage of Scams Prevention Framework Bill so that the significant work that needs to follow to implement the framework can begin.”