New measure aims to block scams before they reach consumers
The Australian Banking Association (ABA) has welcomed the introduction of new anti-scam legislation in Parliament, aimed at strengthening protections for consumers against fraud.
ABA chief executive Anna Bligh (pictured above) endorsed the federal government’s proposed Scams Prevention Framework, calling it a comprehensive approach to detecting, disrupting, and responding to scams.
“This is an important step forward in our ongoing work to scam-proof Australia and stay one step ahead of the international criminal gangs behind these scams,” she said.
Bligh noted that Australia has already seen a reduction in scam-related losses, outpacing declines in other countries. She emphasised the importance of a multi-faceted approach to address the issue.
“The main purpose of this framework is to harden the country against scammers by preventing people from being exposed to them in the first place,” she said.
The framework is designed to impose greater responsibilities on telecommunications providers and social media platforms to implement safeguards that block scams before they reach consumers. It also holds Australian banks accountable for measures taken to protect their customers, many of which are outlined in the industry’s Scam-Safe Accord.
As part of the Scam-Safe Accord, Australian banks have committed to a $100 million investment in a “confirmation of payee” system, allowing individuals to verify the intended recipient before transferring funds.
Banks are also introducing enhanced warnings and payment delays to help protect customers from potential scams and are increasing their use of identity verification technologies, including biometric checks for new customers. In addition, the banking sector is expanding intelligence sharing to improve fraud detection, with all banks required to implement anti-scam strategies.
“Our industry also welcomes the establishment of a clearer and more consistent pathway to compensation for consumers where businesses have failed to meet their obligations,” Bligh said.
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