The Australian federal government has announced sweeping new legislation aimed at protecting citizens from online scams. The legislation proposes fines of up to $50 million for social media platforms, telecommunications companies, and banks that fail to act against fraudulent activities.
Under the new Scam Code Act, these organisations will be required to report scams immediately or face substantial penalties. The Australian Competition and Consumer Commission will have the power to draft mandatory codes for these entities, marking a significant shift in regulatory oversight.
The legislation comes in response to alarming statistics showing Australians lost $2.74 billion to scams in 2023. While this represents a 13% decrease from 2022, certain demographics remain particularly vulnerable. Notably, Australians over 65 were the only age group to see an increase in losses, with a 13.3% rise to $120 million in 2023.
Assistant Treasurer Stephen Jones highlighted the double standard between traditional and digital media, noting that newspapers and broadcasters are already held liable for fraudulent advertisements. “If Facebook or Instagram or Google are taking advertising money from criminals who are publishing criminal content, there’s something very wrong about that,” Jones stated.
Of particular concern is the rise of “deep fake” scams on social media platforms, where artificial intelligence is used to create convincing but fraudulent videos featuring prominent Australians like Dick Smith and Dr Karl Kruszelnicki endorsing various schemes.
The proposed legislation forms part of a broader government initiative to combat online fraud, which includes recent announcements about age restrictions on social media platforms. The new laws are expected to be introduced to Parliament before the end of the year, providing hope for better protection against the evolving landscape of digital scams.
For a full reading of the media release, see here.
