Canberra
The Australian government plans to impose hefty fines on companies that fail to protect customers from scams. The proposed laws, announced by Assistant Treasurer Stephen Jones on Friday, will require banks, telecommunications companies, and technology firms to implement stricter measures to safeguard customers.
Under the new laws, sector-specific codes will be created, obliging designated industries to take action against scammers. Companies that fail to meet these obligations could face fines of up to $33.6 million, according to sources.
The laws initially target banks, telecommunication service providers, and digital platforms involved in social media, paid search engine advertising, and direct messaging services. ‘We want to provide the best protections available anywhere in the world to people here in Australia,’ Jones stated. He added that although Australia has not experienced the same rate of scam growth as other countries, losses are still too high.
Victims of scams will have the right to seek compensation from banks, digital platforms, or telecommunications companies by filing a complaint with the Australian Financial Complaints Authority. Banks will also be required to report scams immediately upon discovery and attempt to halt any payments.
The announcement follows a report from the Australian Competition and Consumer Commission, which revealed that Australians lost $1.84 billion to scams in 2023.
