This framework takes an economy-wide approach to close gaps that scammers exploit, introducing stringent obligations and penalties for non-compliance.
The framework requires designated sectors—including banks, telecommunications, and digital platform providers such as social media, paid search engine advertising, and direct messaging services—to implement robust measures to prevent, detect, and respond to scams.
Professor Asha Rao, a cybersecurity expert at RMIT, welcomed the proposed legislation, noting the urgency of action. “In 2022, Australians lost over $3 billion to scams. In 2023, as per the ACCC, Australians reported over 600,000 scams – an increase of 18.5% from the year before, leading to losses of over $2.74 billion,”
She also emphasised the growing sophistication of scams, stating, “Scammers are getting increasingly sophisticated, tailoring scams to demographics and rendering all of us unsafe in our own ways.”
Professor Rao pointed out the particular challenges posed by fraudulent bank transfers. “When credit cards are used for fraud, banks are good at alerting us and are often able to stop the fraud very quickly. Unfortunately, this is not the case with bank transfers, which is where most fraud is happening,”
“If we could be alerted that the account we are about to transfer money into is not what it purports to be, that would go a long way in reducing the losses.”
The Scams Prevention Framework aims to address these issues by introducing mandatory codes requiring banks, telcos, and tech giants to collaborate in reducing scam activities. Professor Rao described this legislation as “a step in the right direction” towards making Australia a leader in digital safety regulations.
Read also: SMS Sender ID Register to restore trust in Australian communications
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