Australians are losing over $2.74 billion annually to digital scams, prompting the federal government to introduce tougher laws. However, there has been criticism as to whether these changes will force big corporations to take real responsibility.
From fake “Telstra” texts to fraudulent “ATO” calls, scams have become a daily menace. Despite 600,000 scams reported yearly, few perpetrators are caught – many operate overseas, making enforcement difficult. To respond to this, the government introduced the Scams Prevention Framework, with the aim to shift more liability onto banks, telcos, and tech giants.
Currently, consumers carry the burden, with a constant need to stay vigilant while facing implied victim-blaming when scams succeed. The new laws propose shared responsibility, requiring:
- Banks to implement “confirmation of payee” systems and crack down on “money mule” accounts.
- Tech giants (Google, Meta, TikTok) to verify advertisers and remove scam content.
- Telcos to block scam calls and verify SMS senders.
Unlike the UK’s bank-liability model, Australia’s approach spreads accountability. This provides some reprieve for banks but may be a potential bureaucratic headache for victims seeking compensation.
While consumer groups welcome the changes, concerns remain:
- Delays in compensation through the Australian Financial Complaints Authority
- Tech firms resisting regulation, for example, Google argued blocking all scam search results is “not feasible.”
- Phased implementation may slow real impact.
ACCC Deputy Chair Catriona Lowe called the laws a “critical step,” but enforcement will be key. If corporations drag their feet, will the government push harder or will Australians remain at the mercy of scammers?
