Australia's Department of the Treasury sets out proposed Scams Prevention Framework with enforceable anti-scam duties for banks, digital platforms and telcos

Australia's Department of the Treasury published an overview of how the Government’s proposed Scams Prevention Framework (SPF) would operate, following the introduction of the Scams Prevention Framework Bill 2024 to Parliament. The framework is designed to impose consistent, enforceable obligations on businesses in key scam-exposed sectors and to create mechanisms for earlier intelligence sharing and consumer redress. Banks, certain digital platforms (including social media) and telecommunications providers are identified as the initial sectors in scope, with the option to expand coverage to other sectors targeted by scammers. The SPF would require regulated entities to take “reasonable steps” to prevent, detect and disrupt scams, supported by mandatory sector codes of conduct, and provides for penalties of up to AUD 50 million for businesses that do not meet their obligations. It also sets expectations for scam intelligence sharing with the Australian Competition and Consumer Commission for onward distribution to other businesses, law enforcement and international partners, and outlines a compensation pathway where non-compliance leads to consumer loss, including internal dispute resolution requirements and a single external dispute resolution avenue delivered by the Australian Financial Complaints Authority for the three initial sectors. Sector codes for the initial sectors are to be developed through consultation with industry and consumers in 2025, and more detailed requirements for internal and external dispute resolution are to be set out in subordinate legislation developed in consultation with consumer groups and industry.