Parliament passes world-leading scams prevention framework

The Albanese Government has legislated the world’s toughest anti-scam laws to make Australia the hardest target for scammers. 

Australians will be safer online and their money more secure as a result of the new laws. 

The laws establish the Scams Prevention Framework, focused on stopping scams from reaching Australians. 

The Framework requires designated entities to prevent, detect, disrupt, respond and report scams and attempted scams. 

Initially, the Government will designate banks, telcos, and social media companies under the Framework. These businesses will be subject to comprehensive and enforceable sector-specific rules for what they must do to protect Australians.

For example, the rules may include:

  • Social media companies being required to verify advertisers on their platforms – a critical step to ridding their pages of fake scam ads
  • Banks being required to confirm the identity of payees – so people know exactly where their money is going  
  • Telecommunications companies being required to detect and disrupt scam numbers sending texts and calls to innocent Australians.

Businesses will have substantial incentive to have ironclad scams defences, with fines of up to $50 million applied on those who fail to meet their obligations. 

Victims will have clear pathways to compensation if the business fails to meet robust standards.

The Government has invested over $180 million to fight scams including establishing the National Anti-Scams Centre and funding ASIC to bust fake investment websites that promote scams. 

Australians should never have to fight criminal scammers on their own. Labor made fighting scams an issue for government, as well as businesses. 

This is landmark legislation that will set Australia up for a stronger and safer future where people’s money is safer online. 

Quotes attributable to the Assistant Treasurer and Minister for Financial Services, the Hon Stephen Jones MP: 

“Our laws give Australia the strongest defences against scammers and put us ahead of the world in scams prevention and protection.

“This is a promise we made ahead of the 2022 election and will make a genuine difference in the lives of every Australian.

“These new laws will keep Australia one step ahead of criminal scammers.”

Quotes attributable to Minister for Communications, the Hon Michelle Rowland MP:

“Cracking down on criminals trying to rip off hardworking Australians is a priority for this Government.

“The Scams Prevention Framework will help further strengthen scam defences, and I encourage the telecommunications sector and social media platforms to work with the regulators to develop the enforceable industry codes that will provide Australian consumers the best protection from the scourge of scams.

“We will continue to protect hard-working Australians from increasingly sophisticated and organised scammers.”