Snapshot
- The introduction of the Scams Prevention Framework Bill 2024 (Cth) into Parliament signals efforts to modernise Australia’s regulatory response in line with the digital age and prevailing international trends.
- If passed, the new framework will impose six overarching scam prevention responsibilities on those entities captured by its jurisdiction, including an obligation to ‘disrupt’ and ‘prevent’ scams, and give consumers a right to sue companies for damages in some circumstances.
- This article outlines the key features of the new framework, and discusses its enforcement, interaction with other legislation, and how it compares to different international approaches.
Scams present an ever-increasing threat to businesses and consumers. That risk is fuelled by technology, borderless opportunities, and scrupulous and well-funded operators. The National Anti-Scam Centre reported that scammers stole $2.7 billion from Australian consumers in 2023. According to ScamWatch statistics, investment scams were associated with $292 million, or 61 per cent of all reported losses, despite being only three per cent of all reports. There is a significant push for the government to enact a prompt and stringent economy-wide response. The Scams Prevention Framework Bill 2024 (Cth) (‘the Bill’) reflects the Government’s election commitment to require social media companies, banks and telecommunications providers to prevent and respond to scams impacting consumers.
The Government initially tabled and introduced the Scams Prevention Framework (‘the Framework’) as an overarching regulatory mechanism that would work towards protecting Australian consumers from scams and fraudulent behaviour. The scope of the Bill has largely remained consistent with the September 2024 exposure draft and November 2023 consultation paper.
