The ACCC welcomes the passage of the Scams Prevention Framework Bill in Parliament on 13 February.
This world-first legislation enhances protections across the economy by setting out consistent and enforceable obligations for businesses in key sectors where scammers operate.
“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,” says ACCC Deputy Chair Catriona Lowe.
“This Bill is a critical step in the fight against scams – creating overarching principles that all members of designated sectors must comply with. We know scammers will exploit weak links in the system – so these principles are key to a consistent approach.”
Under the new legislation, the ACCC will closely monitor regulated entities’ compliance with principles to prevent, detect, disrupt, respond to and report scams.
The Scams Prevention Framework empowers the ACCC to investigate potential breaches and take enforcement action where entities do not take reasonable steps to fulfill their obligations under these principles.
Businesses that do not meet their obligations under the Framework can face fines up to $50 million.
“Individuals have been bearing the brunt of the responsibility to combat scammers for too long,” Ms Lowe said.
“While the steps taken by some organisations over the last few years are welcomed, the Framework provides the opportunity for joint effort across government and industry to develop solutions to scam challenges and for consumers to access meaningful redress.”
“Importantly, the Framework enables consumers to seek redress from regulated businesses when those businesses have not met their obligations,” Ms Lowe said.
Banks, certain digital platforms, including social media, and telecommunications providers will be the first sectors required to comply with the legislation.
The ACCC is a strong supporter of mandatory industry scams codes and, through the National Anti-Scam Centre, has already begun preparing incrementally for the Framework.
“In reaching this important milestone, we acknowledge that there is considerable work ahead to implement the Framework, including the formal designation of sectors, development of sector codes, consumer and industry guidance,” Ms Lowe said.
“We will continue to work closely with government, fellow regulators, industry and community agencies to make sure these elements of the Framework work for all stakeholders, most especially consumers.”
CHOICE responds to Scams Prevention Framework legislation passing parliament
CHOICE CEO Ashley de Silva says: “CHOICE is pleased to see this much awaited scams legislation pass into law. Until now, scam victims have frequently been left to carry the burden of scams after big businesses like banks and tech platforms have failed to protect them.
“These new laws will require companies such as telcos, banks, and social media platforms to detect, prevent and respond to scams, with significant fines for businesses who fail to comply. These requirements will help to shift the burden of scams onto the shoulders of big businesses with the technology and resources to stop scams happening,” he said.
“While these new laws significantly improve protections against scams for consumers, there is still more to be done. We must make sure consumers can enforce their rights and access compensation through a complaints process that is fair, straightforward and fast. The obligations set by the new Codes must also be strong and set a high standard for businesses, so consumers are protected regardless of which bank, telco or social media platform they use.
“We also urge the government to announce a clear timeline to expand the application of the scams prevention framework to other industries at high risk of exploitation by scammers, such as online marketplaces, superannuation firms and crypto exchanges,” said Mr de Silva.
Read CHOICE’s 2024 scams report: choice.com.au/consumer-advocacy/policy/policy-submissions/2024/may/scams-report.