Courage, ambition and clarity are musts or new anti-scam laws will fail say consumer advocates
Consumer advocates are warning that the Government’s much lauded Scam Prevention Framework (SPF) will fail to protect Australians from scam crime unless the tough talk and promises deliver tangible industry codes and cross sector rules that are enforceable and effective.
The warning comes in a joint submission to the Government’s consultation on the SPF draft materials.
“After almost five years of tough talk and promises, the Government has presented Australians with a weak and confusing set of proposals that will offer only basic protection against scams,” said Meg Dalling, Consumer Action’s Assistant Director, Policy and Campaigns.
“For this framework to succeed, banks, telcos and digital platforms must genuinely invest in protecting Australians from scams, but what we are seeing is industry negotiating to protect their own interests and reverting to harmful and deceptive victim-blaming narratives to distract from their own failure to prevent scams.
“Government must be prepared to step-in and force industry investment and concrete action to ensure we have a system that effectively works to protect everyday Australians, not one that minimises corporate liability,” she said.
Australians reported nearly $2.2 billion in scam losses last year, 8 per cent more than the year before, a reversal of the downwards trend and showing the scammers are getting ahead, preying on system weaknesses and weaponising AI, to steal money that Australians can least afford in a cost-of-living crisis.
“These shocking statistics should be ringing alarm bells for the Government. Instead, we have seen scam prevention sliding down its list of priorities as a staggering half a million Australians are targeted by scam criminals every year.”
“We have one go to get this right. If the Scam Prevention Framework is weak, which is its current trajectory, scam losses will continue to soar, victims of crime will have limited chance at compensation or recovery and trust in the digital economy will continue to erode. This will have been an expensive and time-consuming experiment,” Ms Dalling said.
We call on the Government to:
- Set strong, prescriptive, outcome-focused industry codes that clearly define expectations, exceed current practice, and effectively prevent scams
- Require automatic reimbursement that provides meaningful support, especially for low-value losses, without the need for complex dispute processes
- Mandate a fair, transparent and effective multi-party complaint process for consumers
- Expand the SPF quickly to other high-risk areas, including superannuation and dating platforms, where scams are already widespread.
The recommendations in the submission are informed by the experience of victims and the expertise of consumer organisations across the country, many of whom work with scam victims every day.
“We urge the Government to listen and build a framework that meaningfully protects all Australians.”
QUOTES FROM CONSUMER ALLIES:
Danielle Walt, Director of Policy and Campaigns, Financial Counselling Australia.
“Financial counsellors see the devastating harm caused by scams. We urge the government to get this right to prevent further financial damage to innocent people.”
Carol Bennett, CEO, Australian Communications Consumer Action Network,
“These long-awaited, critical anti-scam reforms are at risk of being undermined from the very start. Narrow designations and delays to the framework will only lock in the massive harms and financial losses being suffered by Australian consumers. We need to see robust, enforceable Codes that put consumers first and are overseen by bold, proactive regulators. In the telco sector, we need stronger, more prescriptive obligations. The industry needs to be held to a high standard, and that standard needs to be enforced.”
ENDS
Media contact: media@consumeraction.org.au or 0413 299 567
