Dispute resolution body pledges stakeholder collaboration
The Australian Financial Complaints Authority (AFCA) has welcomed the passage of the Scams Prevention Framework Bill 2025, which aims to enhance efforts to detect, prevent, report, and disrupt scams across multiple sectors.
The new framework introduces stricter requirements for banks, telecommunications providers, and digital platforms to take stronger action against scams. It also allows for the allocation of liability across industries and the establishment of a unified redress scheme.
“This legislation brings in the sectors needed to effectively disrupt and prevent scams,” said AFCA chief ombudsman and chief executive David Locke (pictured). “It creates the framework for new codes requiring the banks, telecommunications companies and digital platforms to take robust action to drive out this evil traffic. It will enable the apportionment of liability across different businesses and for a single joined-up redress scheme.”
The government has signalled its intent to appoint AFCA as the primary external dispute resolution body for scam-related complaints. This move, Locke said, would provide consumers with a centralised avenue to seek redress against digital platforms and telecommunications firms, in addition to financial institutions.
On top of supporting the legislation’s passage, Locke reaffirmed AFCA’s commitment to collaborating with stakeholders to establish a fair and effective dispute resolution process.
“AFCA will work with all stakeholders to deliver a robust, fair, independent and efficient dispute resolution process,” he said. “We will use our experience, expertise and insights to contribute to the development of new rules and codes, and to support firms to develop and enhance their internal dispute resolution practices.”
In the meantime, Locke urged businesses to take proactive steps to protect consumers rather than waiting for formal regulations.
“Banks, digital platforms and telecommunications companies should not wait for the development of the sector codes but should do everything in their power now to protect consumers,” he said. “We urge them to approach complaints from customers affected by scams with a resolution mindset, rather than taking an adversarial position.”
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