Parliament has passed the Scam Prevention Framework bill as part of efforts to help banks and protect Australians from falling into financial scams.
Hailed as a world-first, the legislation will enhance protections across the economy by setting out consistent and enforceable obligations for businesses in key sectors where scammers operate.
This passage of the Scam Prevention Framework is seen as the first step in the fight against scams with amendments to the industry codes for banks, telcos and digital platforms expected to follow to strengthen Australia’s scam prevention efforts.
The framework will also see to it that banks will also be held to account to ensure their customers are protected from fraud and other financial scams, as established by the banking industry’s Scam-Safe Accord.
Speaking on behalf of the banks, Australian Banking Association (ABA) CEO Anna Bligh welcomed the development, saying that Australia was leading the way in its comprehensive approach to scam prevention.
“This is a game-changer in the fight against scammers and will ensure all parts of the scams chain are held to account for their responsibilities to prevent, detect, report, disrupt and respond to scams,” Bligh said. “Our world-first approach will make sure telcos and the digital platforms have strong safeguards in place to stop scams from reaching consumers.”
ABA Chief of Policy Christopher Taylor said with the framework now enshrined in law, it was important effective mandatory industry codes were developed to ensure all regulated entities are required to take strong action to combat scams.
“Banks will now work closely with the Government and other sectors on the development of mandatory industry codes as well as a single complaints body to provide more consistent outcomes for customers,” Taylor said. “We also encourage the Government to move promptly to expand the framework to other sectors such as cryptocurrency, superannuation and other payment providers.”
Bligh noted that while losses incurred by businesses due to scams declined by 33 per cent, there is still much work needed to be done in the scam prevention front, which Scam Prevention Framework is envisioned to strengthen.
“We now have the legislative foundation to stay one step ahead of scammers and drive them out of Australia,” she said.
