Australia Enacts Groundbreaking Anti-Scam Legislation with Severe Penalties for Offenders
Social media companies and banks must implement new measures to combat scam activity on their platforms.
The Australian Parliament has approved groundbreaking anti-scam laws.
These laws impose fines of up to $50 million on businesses that lack robust defenses against scams, while giving victims clearer paths to compensation.
They also establish the Scams Prevention Framework, requiring banks, telecommunications companies, and social media platforms to identify and deter scams to safeguard their customers.
For instance, social media companies may need to authenticate advertisers to prevent the dissemination of fraudulent scam ads.
Similarly, banks might have to verify the identities of payees to ensure customers are aware of who they are transferring money to.
Telecom companies will be tasked with identifying and interrupting scam phone numbers used for deceitful calls and texts to Australians.
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In 2023, Australians reported 601,000 scams, marking an 18.5 percent increase from the previous year, according to data compiled by Scamwatch, ReportCyber, the Australian Financial Crimes Exchange (AFCX), IDCARE, and ASIC.
Investment scams remain the most damaging, costing Australians $1.3 billion, followed by remote access scams ($256 million) and romance scams ($201.1 million).
The government has allocated over $180 million to combat scams, including establishing a new National Anti-Scams Centre and providing additional funding to 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 emphasized that cracking down on scammers was a top priority for the government.
“The Scams Prevention Framework will help bolster scam defenses further, and I urge the telecommunications sector and social media platforms to collaborate with regulators to develop enforceable industry codes that safeguard Australian consumers,” she stated.
The Australian Competition and Consumer Commission (ACCC) welcomed the passage of the bill.
ACCC Deputy Chair Catriona Lowe emphasized, “The prevalence of financial crime, such as scams, poses an unacceptable threat to the Australian community and has had a devastating impact on hundreds of thousands of Australians.”
