It is not exactly what consumer groups wanted – banks having to take responsibility if their customers fall for scams, but there is movement in that direction.

Stephen Jones and Michelle Rowland have announced a new scams prevention framework:

Initially, the Government will designate banks, telcos, and social media companies under the Framework. These businesses will be subject to comprehensive and enforceable sector-specific rules for what they must do to protect Australians.

For example, the rules may include:

  • Social media companies being required to verify advertisers on their platforms – a critical step to ridding their pages of fake scam ads
  • Banks being required to confirm the identity of payees – so people know exactly where their money is going 
  • Telecommunications companies being required to detect and disrupt scam numbers sending texts and calls to innocent Australians

Businesses will have substantial incentive to have ironclad scams defences, with fines of up to $50 million applied on those who fail to meet their obligations.

Victims will have clear pathways to compensation if the business fails to meet robust standards.

The Government has invested over $180 million to fight scams including establishing the National Anti-Scams Centre and funding ASIC to bust fake investment websites that promote scams.