Social media companies and banks will need to adopt new measures to prevent scam activity on their networks.
The Australian Parliament has passed its “world first” anti-scam laws.
The laws introduce fines of up to $50 million for businesses to have strong scams defences, while victims will have clearer pathways to compensation.
It also legislates the Scams Prevention Framework, which obligates banks, telcos, and social media companies to detect and deter scams in order to protect customers.
For example, social media companies may need to verify advertisers on their platforms to prevent the publishing of fake scam ads.
Meanwhile, banks could be required to confirm the identity of payees—people receiving payments—so that customers know exactly who they are paying.
Telecommunications companies will need to detect and disrupt scam phone numbers used for fraudulent calls and texts to Australians.
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Australians reported 601,000 scams in 2023, an 18.5 percent increase from 2022, according to a report compiling data from the groups: Scamwatch, ReportCyber, the Australian Financial Crimes Exchange (AFCX), IDCARE, and ASIC.
Investment scams continue to cause the most harm costing Australians $1.3 billion, followed by remote access scams ($256 million), and romance scams ($201.1 million).
The government has also invested over $180 million to fight scams, including setting up a new National Anti-Scams Centre and more funding to the Australian Securities and Investments Commission (ASIC) to shut down fake investment websites.
Reaction to the Bill’s Passage
In his farewell speech, Assistant Treasurer Stephen Jones urged his colleagues to pass the bill.
“This is a promise we made ahead of the 2022 election and will make a genuine difference in the lives of every Australian,” he said.
Minister for Communications Michelle Rowland said cracking down on scammers was a priority for the government.
“The Scams Prevention Framework will help further strengthen scam defences, and I encourage the telecommunications sector and social media platforms to work with regulators to develop the enforceable industry codes that will protect Australian consumers,” she said.
The Australian Competition and Consumer Commission (ACCC) welcomed the bill’s passage.
ACCC Deputy Chair Catriona Lowe said, “The financial crime type, scams, present an unacceptable threat to the Australian community and have had a devastating impact on hundreds of thousands of Australians.”
