Australians will be better protected from online, banking and telecommunications scams after new laws passed parliament.
The background: Businesses could be fined up to $50 million if they do not maintain strong scams defences and victims will have clearer pathways to compensation.
The laws also establish a scams prevention framework that will subject banks, telecommunications companies and social media organisations to sector-specific rules on protecting Australian consumers.
The laws have been welcomed by the Australian Financial Complaints Authority (AFCA).
The key quote: "Every day we see the devastating impacts of scams, with people suffering life-changing financial losses, as well as the humiliation of being tricked and the loss of their confidence and sense of security. This legislation is a significant step forward." — AFCA chief executive David Locke.
What else to know: Under the changes, banks may have to confirm payee identities so those who send money know where their funds are going, and telecommunications companies could be required to detect and disrupt scam numbers.
Consumers and small businesses reported more than 10,000 scams in 2023/24, but the authority's annual review found a downturn in complaints during the last quarter.
