The Australian government has enacted the Scams Prevention Framework law, aimed at holding social media companies, banks, and telecommunication companies accountable for facilitating scams. The law imposes strict regulations on these sectors, ensuring they take responsibility for preventing malicious actors from using their networks to carry out online or phone scams. If any of these entities fail to meet the obligations set forth, they face fines of up to AU$50 million or could be required to compensate victims for their losses.
This groundbreaking legislation is being hailed as the toughest anti-scam framework in the world. It includes measures that require social media platforms to verify advertisers to prevent fake ads, banks to confirm payee identities to ensure transparency in financial transactions, and telecommunication companies to detect and disrupt scam-related numbers.
The Australian government hopes that these provisions will make it far more difficult for scammers to target residents, providing victims with clearer pathways to recovery.
The law comes in response to the growing scale of scams affecting Australian citizens, with over 601,000 scams reported in 2023, resulting in losses of AU$2.74 billion. This marks an 18.3% increase in scams from the previous year, although the total monetary losses have slightly decreased. In addition to these requirements, the law introduces an intelligence-sharing system for timely reporting and collaboration across industries and government agencies, ensuring that efforts to fight scams are well-coordinated and effective.
Industry reactions to the new law have been positive, with the banking sector particularly supportive. The Australian Banking Association (ABA) has welcomed the legislation, emphasizing the role banks will play in safeguarding customers against scams. They are ramping up efforts under the Scam-Safe Accord, and while scam losses have already decreased by 33%, there is a strong commitment to further reducing these incidents. The new law provides a much-needed legal framework to stay ahead of scammers and protect Australian residents more effectively.
