Australia passes world-first scams prevention framework

Australia has adopted world-first legislation to protect residents from scams and the cybercriminals behind them. The scams prevention framework will require designated entities – including banks, telcos and social media companies – to proactively detect and disrupt scams and report scam activity. Australians on average lose $100 per head to scammers, according to the ACCC, more than doubling the $45 per head lost in the US and $34 per head lost in the UK. As part of the crackdown social media will be required to verify its advertisers, while banks must be able to identify who the payee is. Businesses that do not meet their obligations under the framework can face fines of up to $50m. In a statement, the Australian Banking Association welcomed the passing of the new reforms they say will better protect Australians and help drive financial losses down. ABA chief executive Anna Bligh said Australia was leading the way in its comprehensive approach to scam prevention and this was a significant moment in continued attempts to harden the country against scammers. “Australia is tackling scams from all angles. This new framework prioritises preventing people from being exposed to scams in the first place,” Ms Bligh said. “This is a game changer in the fight against scammers and will ensure all parts of the scams chain are held to account for their responsibilities to prevent, detect, report, disrupt and respond to scams. Assistant Treasurer Stephen Jones said the legislation would give Australia the strongest defences against scammers and put us ahead of the world in scam prevention and protection. “This is a promise we made ahead of the 2022 election and will make a genuine difference in the lives of every Australian,” he said. “These new laws will keep Australia one step ahead of criminal scammers.” ACCC deputy chair Catriona Lowe welcomed the world-first legislation, as it would enhance 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,” Ms Lowe said. “This (legislation) 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.”