In a major step to combat financial fraud, Australia has passed the Scams Prevention Framework Bill, setting a new global standard for scam prevention. Approved by Parliament on February 13, 2025, this legislation places greater responsibility on banks, telecommunications companies, and digital platforms to detect and stop scams before they reach consumers.
The move comes as Australians face significant financial losses from scams. According to the Australian Competition and Consumer Commission (ACCC), Australians lose an average of $100 per person to scams—more than double the $45 per head in the U.S. and nearly triple the $34 per head in the U.K. The new framework aims to strengthen consumer protections while holding businesses accountable for their role in preventing fraud.
Mandatory Scam Prevention Measures
The Scams Prevention Framework introduces strict requirements for businesses operating in industries frequently targeted by scammers. Companies must now take proactive steps to prevent, detect, and report scams, rather than relying on consumers to protect themselves.
ACCC Deputy Chair Catriona Lowe emphasized the urgency of these changes:
“Scams have caused devastating harm to hundreds of thousands of Australians. This law is a critical step in fighting fraud, ensuring that all businesses in designated sectors play their part in stopping scammers.”
The framework establishes uniform principles that all covered businesses must follow, ensuring a consistent approach across different industries. Companies that fail to comply with these obligations could face fines of up to AUD 50 million.
Regulatory Oversight and Enforcement
Enforcement of the Scams Prevention Framework will be shared among three major regulators:
- The ACCC will oversee digital platforms, including social media companies.
- The Australian Securities and Investments Commission (ASIC) will regulate the banking sector.
- The Australian Communications and Media Authority (ACMA) will manage telecommunications providers.
These agencies will work together to monitor compliance, investigate violations, and take enforcement action against companies that fail to meet their obligations. Lowe acknowledged that effective implementation of the framework will require significant effort, including finalizing industry codes and educating businesses and consumers on their rights and responsibilities.
“We will continue working closely with the government, industry, and community organizations to ensure the framework delivers real protections for consumers,” Lowe said.
Consumers to Benefit from Stronger Protections
One of the most significant changes under the new law is the shift in responsibility from individuals to businesses. In the past, consumers were largely left to fend for themselves when dealing with scams. Now, companies must take action to prevent scams from occurring in the first place.
Lowe stressed that while some businesses have already taken steps to combat fraud, a legally binding framework ensures all companies meet the same high standards.
“Individuals have been bearing the burden of scam prevention for too long. This framework allows businesses, regulators, and the government to work together in a unified effort to combat scams and protect consumers.”
A key provision of the law also allows consumers to seek redress from businesses that fail to meet their scam prevention obligations. This means if a company does not follow the required scam prevention measures and a consumer suffers financial loss as a result, they may be entitled to compensation.
A Global Leader in Scam Prevention
The passage of this law puts Australia ahead of many other nations in the fight against financial fraud. Assistant Treasurer Stephen Jones called it a historic milestone that will provide Australians with the strongest protections against scammers.
“This legislation keeps Australia one step ahead of cybercriminals. It’s a promise we made in 2022, and it will make a real difference in protecting people from financial harm.”
The ACCC’s National Anti-Scam Centre is already preparing for phased implementation of the framework, ensuring businesses can gradually adapt to the new regulations while regulators develop sector-specific compliance guidelines.
Next Steps for Implementation
With the Scams Prevention Framework now in place, the next steps include:
- Designating industries that must comply with the legislation.
- Developing industry-specific scam prevention codes for businesses to follow.
- Providing education and guidance for both businesses and consumers on scam prevention.
Lowe acknowledged that successful implementation is just as important as passing the law and reassured Australians that regulators will be actively involved in ensuring businesses meet their obligations.
“There is still much work ahead, but we are committed to making sure this framework delivers the protections Australians need.”
