Proposed anti-scam laws need to be simpler and clearer, advocates claim

Proposed federal scam prevention laws need to be made simpler and clearer, according to advocates from the banking, technology, and telco sectors.

While speaking at a Federal Senate hearing on Tuesday, January 28, Australian Banking Association (ABA) chief executive Anna Bligh said “a lot more” needed to be clarified with The Scams Prevention Framework Bill 2024, as it may lead to obligations that conflict with industry codes.

“The best way to ensure compliance and impact from legislation is to make sure that obligations are absolutely crystal clear, that there are not overlapping obligations,” Bligh said.

As part of the reforms, fines of up to $50 million could be handed out if “reasonable steps” are not taken by businesses to prevent, detect, disrupt, respond and report scams or attempted scams.

Digital Industry Group (DGI) managing director Sunita Bose said that while the aim of the legislation was supported by a consortium of technology companies, whose members include Microsoft, Google, Meta, eBay and Apple, crucial revisions were required to ensure it is clear and effective.

“We need one clear set of obligations that are targeted to each sector, including digital platforms, that outline specific, reasonable steps they must take,” Bose said.

“Instead, we have a generic set of obligations.

“No one can confidently explain today when companies are liable for scams because those key details haven’t been worked out.

“That confusion will frustrate consumers, it will see industry focused on finger-pointing, sometimes over lengthy legal battles, rather than collaborating to beat scammers at their game.”

As debate rages over the legislation, there are ways in which you can protect yourself and your loved ones from scams.

The Australian Competition and Consumer Commission (ACCC) offers the following tips to avoid falling victim to scam activity:

STOP – Don’t rush to act. Scammers will create a sense of urgency.

THINK – Ask yourself if you really know who you are communicating with. Scammers can impersonate others and lie about who they are – especially online.

PROTECT – Act quickly if something feels wrong. If you have shared financial information or transferred money, contact your bank immediately. Help others by reporting to Scamwatch.

– with AAP.