Proposed framework expands regulators’ powers to combat scams more effectively
The Australian government has introduced new legislation aimed at making the country’s anti-scam defences among the strongest in the world.
The proposed Scams Prevention Framework, presented to Parliament by the Albanese government, would impose strict new obligations on banks, social media companies, and telecommunications providers to combat online fraud.
Under the framework, businesses in these sectors could face penalties of up to $50 million if they fail to take “reasonable steps” to prevent, detect, and address scams. The legislation also establishes clearer pathways for victims to seek compensation when companies fall short of these standards.
The Australian Competition and Consumer Commission (ACCC) would gain expanded powers under the new framework, enabling it to direct companies to implement specific anti-scam measures. Additionally, the Australian Financial Complaints Authority (AFCA) would be authorised to handle consumer claims related to scams, providing a formal avenue for redress.
If passed, the anti-scam legislation would allow the minister to set mandatory codes for designated industries, including banking, telecommunications, and social media, establishing specific obligations to protect consumers. Businesses in these regulated sectors would be required to implement clear and accessible internal dispute resolution processes. This represents a notable shift for social media platforms, which currently lack formal mechanisms for handling consumer complaints.
The framework would also enable the minister to issue rules on how liability should be apportioned among businesses found at fault, simplifying redress for consumers. A single external dispute resolution scheme would be created for unresolved scam-related disputes, providing a unified process for consumer complaints. Additionally, the framework mandates coordinated reporting and intelligence sharing across industry and government to improve scam prevention efforts.
The Albanese government argues that these measures are urgently needed, citing a trend of escalating losses to scammers in recent years. The government has already invested over $180 million in anti-scam initiatives and established the National Anti-Scam Centre. According to officials, these efforts have led to a reduction in scam losses for the first time since 2016.
The Australian Banking Association (ABA) has earlier expressed support for the introduction of the new anti-scam legislation in Parliament.
Assistant treasurer and minister for financial services Stephen Jones (pictured above left) urged Parliament to support the bill, emphasising the need for strong consumer protections.
“Over the last year, I’ve spoken to thousands of Australians in cities and towns around the country,” he said. “They want tough action to protect their money and their information, and these laws deliver.”
Minister for communications Michelle Rowland (pictured above right) also backed the initiative, particularly highlighting the impact on the telecommunications industry. While acknowledging some progress in blocking scam calls and messages, she noted that further action is necessary.
“The Scams Prevention Framework will help to further strengthen scam defences,” she said. “I encourage the telecommunications sector to continue to work closely with the regulator, ACMA, to develop the industry codes that will provide Australian consumers the best protection from the scourge of scams.”
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