Australia Sets the Stage for Strongest Anti-Scam Protections in the World

The Scams Prevention Framework The Albanese government's proposed legislation, which is expected to pass through federal parliament, introduces a comprehensive "scams prevention framework." This framework outlines a shared liability model that holds designated industries—namely banks, social media companies, and telecommunications providers—accountable for scams that occur on their platforms. Under this new law, these companies could face fines of up to $50 million for non-compliance, a move aimed at compelling them to adopt rigorous measures to protect consumers. Shared Liability: A New Approach One of the most significant aspects of the new legislation is the shared liability approach. Unlike the UK model, which places the onus solely on banks, the Australian framework distributes responsibility among several industries. This means if a consumer falls victim to a scam via social media and subsequently loses money from their bank account, both entities could be held liable if they failed to implement adequate protections. Assistant Treasurer Stephen Jones emphasized this shared responsibility, stating, "This legislation will ensure that all parties involved in the digital ecosystem contribute to the safety of consumers." Consumer Complaints on the Rise The urgency for these new laws is underscored by the alarming rise in scam-related complaints. In 2023, the Australian Financial Complaints Authority (AFCA) reported over 100,000 complaints, with 9,000 related to scams—nearly double the number from the previous year. Victims have expressed frustration with how banks handle scam incidents, prompting calls for improved accountability. The new legislation is poised to address these concerns by providing "clear pathways to compensation" for victims if regulated entities fail to act responsibly.

### Enhanced Consumer Protections Under the new laws, social media companies, banks, and telecommunications firms will be required to establish "clear, accessible, and transparent" internal dispute resolution mechanisms. If disputes over scams cannot be resolved internally, they can be escalated to a new external resolution scheme operated by AFCA. Additionally, consumer watchdogs like the Australian Competition and Consumer Commission (ACCC) will have expanded powers to direct businesses on maintaining customer safety from scams. Intelligence Sharing and Reporting A significant feature of the proposed legislation is the establishment of a new system for sharing intelligence about scams between businesses and the government. With mandatory reporting requirements, companies will be encouraged to collaborate and share information, creating a more robust defense against the growing threat of scams.