The Australian Competition and Consumer Commission (ACCC) has welcomed the passage of the Scams Prevention Framework Bill in Parliament, marking a significant milestone in the fight against scams. This world-first legislation introduces consistent and enforceable obligations for businesses in key sectors where scammers operate, enhancing protections across the economy.
ACCC Deputy Chair Catriona Lowe described scams as an “unacceptable threat” to Australians, highlighting their devastating impact on hundreds of thousands of individuals. The legislation aims to address weak links in the system by ensuring a unified approach to preventing, detecting, disrupting, responding to, and reporting scams.
Under the new Framework, the ACCC will monitor regulated entities’ compliance and take enforcement action against those failing to meet their obligations. Businesses that do not take reasonable steps to combat scams could face fines of up to $50 million. Deputy Chair Lowe emphasised that individuals have shouldered too much responsibility for combating scams for too long.
The legislation will initially apply to banks, digital platforms (including social media), and telecommunications providers. The ACCC, through its National Anti-Scam Centre, has already begun preparing for the Framework’s implementation.
As the ACCC prepares to implement the Framework, Deputy Chair Lowe acknowledged the considerable work ahead, including the formal designation of sectors and the development of sector codes.
The Scams Prevention Framework represents a critical step in cutting off scammers before they can harm Australians, reinforcing the importance of collaboration and accountability in combating financial crime.
