The Australian Competition and Consumer Commission (ACCC) has welcomed the passage of the Scams Prevention Framework Bill in the Australian Parliament on February 13, 2025.
This world-first legislation improves protections across the economy by setting out consistent and enforceable obligations for businesses in key sectors where scammers operate.
“The financial crime type, scams, present an unacceptable threat to the Australian community and have had a devastating impact on hundreds of thousands of Australians,” said ACCC Deputy Chair Catriona Lowe.
“This bill is a critical step in the fight against scams, creating overarching principles that all members of designated sectors must comply with,” she added. “We know scammers will exploit weak links in the system, so these principles are key to a consistent approach.”
Under the new legislation, the ACCC will closely monitor regulated entities’ compliance with principles to prevent, detect, disrupt, respond to and report scams.
The Scams Prevention Framework empowers the ACCC to investigate potential breaches and take enforcement action where entities do not take reasonable steps to fulfil their obligations under these principles.
Businesses that do not meet their obligations under the framework can face fines up to AUD50 million.
“Individuals have been bearing the brunt of the responsibility to combat scammers for too long,” said Lowe. “While the steps taken by some organisations over the last few years are welcomed, the framework provides the opportunity for joint effort across government and industry to develop solutions to scam challenges and for consumers to access meaningful redress.”
“Importantly, the framework enables consumers to seek redress from regulated businesses when those businesses have not met their obligations.”
Banks, certain digital platforms, including social media, and telecommunications providers will be the first sectors required to comply with the legislation.
The ACCC is a strong supporter of mandatory industry scams codes and, through the National Anti-Scam Centre, has already begun preparing incrementally for the framework.
The new Scams Prevention Framework will be critical to cutting off scammers before they can reach Australians.
Under the framework, the ACCC will also enforce the digital platforms sector scams code and will take enforcement action where digital platforms breach their obligations under this code.
The Australian Securities and Investments Commission will be the regulator for the banking sector code and the Australian Communications and Media Authority will be the regulator for the telecommunications sector code. Regulators have in place processes to work together to help ensure the right action by the right regulator at the right time.
“In reaching this important milestone, we acknowledge that there is considerable work ahead to implement the framework, including the formal designation of sectors, development of sector codes, consumer and industry guidance,” said Lowe.
“We will continue to work closely with government, fellow regulators, industry and community agencies to make sure these elements of the framework work for all stakeholders, most especially consumers.”
