Scam prevention laws must plug the gaps and guarantee fair compensation say consumer advocates
Joint submission warns current design leaves major scam channels uncovered, delays real protections, and will fail victims without a workable dispute resolution pathway
Australia’s leading consumer advocacy organisations have lodged a joint submission on the Government’s Scam Prevention Framework (SPF) draft law package and position paper, welcoming the step forward but warning the proposal—without major fixes and faster implementation—will leave Australians exposed and short‑changed for years to come.
“Scam losses are enormous and persistent—over $2 billion was lost in 2024, with losses rising in 2025—and vulnerable consumers are bearing the brunt,” said Stephanie Tonkin, CEO of Consumer Action Law Centre. “Government must be genuinely ambitious. Fix the gaps, mandate real action across the scam ecosystem, and guarantee fast and fair compensation when businesses fail to meet their obligations.”
Advocates say the SPF’s proposed designations leave major scam channels untouched, despite well-known and growing risks. Email services, online marketplaces, dating apps, app stores, gaming platforms, job boards and web browsers are excluded.
“This piecemeal approach weakens and undermines the SPF,” Ms Tonkin said. “Platforms like email, marketplaces and dating apps are already leading avenues for scams. If they are left out of the SPF scammers will keep using these vectors to find easy paths to victims. Australians expect comprehensive protections wherever they are targeted—not just on a handful of platforms.”
The delay to at least 2027 of the requirement that businesses share information to protect Australians from scams is a gaping hole in the proposal. Without obligations on businesses to identify, respond and share scams intelligence, the whole framework is undermined.
The Government’s proposal also sets out an overly complex dispute resolution system that is stacked against the consumer.
“It is critical that scam victims have a fair and functional pathway to seek compensation when something goes wrong. The current proposal does not come close to delivering that pathway. We call on Government to develop a dispute resolution process that will deliver fair outcomes for Australians harmed by scams,” said Ms Tonkin.
Key fixes proposed in the joint submission include:
Expand coverage: Broaden the definition of “digital platforms” to include email, marketplaces, dating apps, app stores, gaming platforms, job boards and web browsers; adopt broader, future‑proof definitions similar to the UK/EU; and signal next steps now to cover digital payment platforms and the superannuation sector as priorities.
Expedite Actionable Scam Intelligence (ASI) obligations: At minimum, require SPF-covered businesses to maintain and uplift current information sharing and act on publicly available scam intelligence immediately while we wait for Government to meet its commitments.
Lift the bar on code obligations: Set clear, enforceable rules for industry that go beyond existing practice to protect people from scams; clarify what constitutes reasonable steps; and embed protections for vulnerable consumers into the SPF
Make dispute resolution consumer centred: The multiparty Internal Dispute Resolution (IDR) model, as proposed, is unworkable. Implement a central IDR body for multiparty complaints, fast-track small claims for low value scams, mandate strict 15-day timeframes, and guardrails against lowball offers with transparent reporting to identify systemic issues.
Guarantee fair compensation: Victims must be made whole where at least one entity fails to meet its SPF obligations; and ensure access to independent External Dispute Resolution.
The joint submission also calls for urgent, interim protections before full SPF implementation:
Stronger bank hardship and reporting obligations until 2028: Banks should report on debt accruing interest where customers have lost money to a scam and must be prevented from charging interest on scammed funds.
A full ban on crypto ATMs: Fasttrack a complete ban using AUSTRAC’s strengthened powers to restrict or prohibit high-risk products.
“We hear from people who’ve been scammed and then charged interest on the very funds stolen from them,” Ms Tonkin said. “That’s unconscionable. Stop the interest, report the harm, and help victims get back on their feet.
“Australians deserve a world leading system that detects, prevents and disrupts scams—and makes victims whole when businesses fall short. We stand ready to work with Government and industry to deliver a Scam Prevention Framework that truly protects all Australians.”
ENDS
Media contact: Mark Pearce mark@consumeraction.org.au Tel: 0413 299 567
