Involved sectors urged to act swiftly against scams
The Australian banking sector has welcomed the government’s proposed Scam Prevention Framework, aimed at protecting consumers and cracking down on fraud.
The draft legislation, which calls for collective efforts from banks, telecommunications providers, social media platforms, and other digital service providers, is seen as a crucial step in the fight against scammers.
Anna Bligh (pictured above centre), chief executive of the Australian Banking Association (ABA), highlighted the importance of a multi-sector approach to tackling scams.
“Banks have advocated for these industry codes because only an entire scams chain approach with a major focus on prevention will enable us to beat scammers,” she said.
Bligh added that while scam losses in Australia have decreased, a comprehensive framework involving all parties is essential to provide effective consumer protection.
The proposed framework also includes the creation of a single external dispute resolution body to handle scam-related complaints. This move is widely supported by the banking industry, with customer-owned banks and the Australian Financial Complaints Authority (AFCA) also expressing their approval.
Michael Lawrence (pictured above left), chief executive of the Customer Owned Banking Association (COBA), echoed Bligh’s sentiments, stressing the need for accountability across all sectors involved in scams.
“While banks are at the end of the chain, these sectors are the channels scammers use to initiate contact with their victims, making a multi-sector approach crucial to effectively disrupt criminal networks,” Lawrence said.
He also pointed to the industry’s proactive measures, such as the Scam-Safe Accord launched in November 2023, which aims to detect and prevent scams through intelligence sharing and improved security.
AFCA, which is expected to play a key role as the external dispute resolution body, lauded the government’s plans.
According to David Locke (pictured above right), chief ombudsman and chief executive of AFCA, the new framework would fill legal gaps that currently make it difficult for scam victims to seek redress.
AFCA already handles thousands of scam-related complaints annually and is expected to be well-positioned to assist in the effort to resolve these issues. The dispute resolution authority received 10,951 scam-related complaints over the past year, or an average of 913 a month.
Locke also called on all sectors to take immediate action against scams, even before the new codes are finalised.
“Digital platform services, banks and telecommunications service providers should not wait until they are required by codes to take action but should now take all actions possible to prevent, detect and disrupt scams,” he said.
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