Banks, social media platforms, and telecommunications companies will soon be financially accountable for scam-related losses incurred by consumers under new government regulations.
Assistant Treasurer Stephen Jones announced at the National Press Club on July 31 that codes enforcing stricter obligations on these stakeholders will be implemented. “If they drop the ball and a victim loses money, they’ll be liable to compensate the victim,” Jones said. Liability may be shared among multiple businesses involved.
The government is investing over $67 million this year in combating scams, with the centrepiece being a scams code framework and new mandatory industry codes. These codes will require banks to strengthen controls around bank transfers, and to report and respond to scams. Telecommunications companies must block known scammers and share intelligence, while social media platforms need to implement stronger anti-scam measures.
Jones emphasized the need for real-time intelligence sharing among stakeholders to prevent scams. He criticized social media platforms for allowing scams to proliferate, noting that scam losses from these platforms increased by 17% in 2023.
The Australian Banking Association (ABA) has questioned whether banks should be solely responsible for compensating customers for scams originating from other sources. ABA’s CEO Anna Bligh called for a systemic approach to break the scamming chain, noting that scams often start on phones, laptops, or through SMS or search engines.