ACCC deputy chair called it a 'critical step' in addressing financial crimes
Parliament has passed the Scam Prevention Framework bill, a first-of-its-kind legislation aimed at curbing financial scams and enhancing protections across key industries.
The bill establishes enforceable obligations for businesses in sectors where scammers frequently operate, including banking, telecommunications, and digital platforms.
The framework is expected to strengthen scam prevention efforts by holding banks accountable under the Scam-Safe Accord, ensuring financial institutions take necessary measures to protect customers from fraud. The bill also paves the way for amendments to industry codes for banks, telcos, and digital platforms to further reinforce anti-scam measures.
The Australian Competition and Consumer Commission (ACCC) has welcomed the passage of the bill, with deputy chair Catriona Lowe calling it a “critical step” in addressing financial crimes.
“Scams present an unacceptable threat to the Australian community and have had a devastating impact on hundreds of thousands of Australians,” Lowe said. “This bill creates overarching principles that all members of designated sectors must comply with. We know scammers will exploit weak links in the system – so these principles are key to a consistent approach.”
Under the new legislation, the ACCC will monitor compliance, investigate breaches, and take enforcement action against businesses that fail to meet their obligations. Companies that do not adhere to the framework may face penalties of up to $50m.
The legislation also shifts some of the responsibility for scam prevention from individuals to businesses. While some organisations have taken steps to combat fraud, the framework now mandates a coordinated effort across government and industry to tackle scams and provide meaningful redress for affected consumers.
“Individuals have been bearing the brunt of the responsibility to combat scammers for too long,” Lowe stated. “The framework enables consumers to seek redress from regulated businesses when those businesses have not met their obligations.”
Banks, telecommunications providers, and certain digital platforms—such as social media companies—will be among the first sectors required to comply with the new regulations. The ACCC’s National Anti-Scam Centre, launched in July 2023, will play a key role in enforcing the framework by coordinating intelligence-sharing and disrupting scams before they reach consumers.
The ACCC will oversee compliance for digital platforms, while the Australian Securities and Investments Commission (ASIC) will regulate the banking sector, and the Australian Communications and Media Authority (ACMA) will be responsible for telecommunications providers.
Looking ahead, regulators will continue working with government agencies, industry stakeholders, and consumer advocacy groups to implement the framework, designate sectors, and develop industry codes to ensure businesses meet their obligations.
“There is considerable work ahead to implement the framework,” Lowe said. “We will continue to work closely with government, fellow regulators, industry, and community agencies to make sure these elements work for all stakeholders, most especially consumers.”
