Aussies demand banks step up to protect consumers from scams

When David Sweeney’s father was scammed out of more than $1 million in 2015, he was left devastated by the “incredibly traumatic” experience with the banks.

Harriet Spring faced a similar nightmare when she was defrauded of $1.6 million after transferring funds from the sale of her 95-year-old mother’s family home.

It’s situations such as these that have prompted scam victims to speak up and demand a reimbursement scheme where banks pay for fraud.

Under its latest crackdown on fraudsters, the Albanese government has drafted legislation aimed at cracking down on fraudsters and penalising companies that fail to protect consumers. This legislation promises victims a clearer path to redress if they are not at fault.

However, many Australians affected by scams argue that the proposed measures fall short and are urging the government to follow the UK’s lead and ensure that banks are required to reimburse fraud victims.

“Without any skin in the game, without the banks feeling any pain for this, we will never change Australia being the honeypot,” Spring said.

Independent senator David Pocock has urged the government to have such legislation passed before the end of the year, warning more people will find themselves falling victim to scam activity.

“We know that when banks are on the hook, they’re going to spend a lot more time and energy into ensuring that they don’t happen in the first place and I think that’s really the missing piece,” he said.

People have until October 4 to weigh in on Labor’s draft legislation.

As Australians await the passage of the proposed legislation, the National Anti-Scam Centre recommends the following precautionary measures for those looking to stay one step ahead of scammers and protect their personal information.

• Stop – don’t give money or personal information to anyone if you’re unsure. Say no, hang up and delete. If a scammer has taken your money or personal details, contact your bank or card provider to immediately report the scam and stop any transactions.
• Check – scammers pretend to be from organisations you know and trust – like myGov, your bank, the police or the government. If you’re unsure, call the official phone number of the organisation to check.
• Report – the more we talk, the less power they have. Report scams to scamwatch.gov.au

-with AAP.