Reported scams down but two-billion dollars in losses still ‘deeply concerning’
Consumer Action Law Centre says a report released today from the National Anti-Scam Centre, Targeting scams, reveals a welcome fall in the value of reported scams losses for 2024 (down by 25.9% to $2.03 billion). Still, the huge sum lost by nearly half a million victims, in the midst of a cost-of-living crisis, is deeply concerning.
“While the reduction in losses is positive, the fact is that over $2 billion was stolen by scammers last year. This loss was almost totally borne by the victims who have no simple path available for reimbursement or justice,” said Consumer Action Law Centre CEO, Stephanie Tonkin.
“What is worst is that this figure is almost certainly an underestimate, as we know roughly 30% of victims do not report their losses.”
Also worrying, the report reveals losses for First Nations Australians increased by more than 70% to $6.5 million (up from $3.8 million in 2023). The number of First Nations people reporting scams decreased from 6,192 in 2023 to 4,524 in 2024, suggesting that while fewer First Nations Australians report being scammed, those who do report are losing larger amounts of money.
Ms Tonkin said that the recent passing by Federal Parliament of the Scam Prevention Framework Act 2005 (SPF) was a step forward for prevention, but a victim will still have to jump through multiple hoops to prove their case for compensation, and the changes will not be implemented until 2026 at the earliest.
“Today’s report underlines why we need action to stop scams now, and a simple and effective pathway for victims to get redress,” Ms Tonkin said.
Ms Tonkin said Consumer Action and her sector colleagues remain committed to working with the government, the Australian Financial Complaints Authority, the National Anti-Scam Centre (NASC) and all stakeholders to strengthen industry obligations through rules and codes and to ensure there are straightforward remedies available for victims who do fall through the cracks.
ENDS
Media contact: Mark Pearce mark@consumeraction.org.au Tel: 0413 299 567
