Amid a surge in cyber scams costing Australians billions, Assistant Treasurer Stephen Jones MP introduced The Scams Prevention Framework (SPF) Bill on Nov. 7, aiming to tackle the growing threat head-on.

“International crime organisations are targeting Australia. There’s a scam pandemic, and it’s costing billions,” Jones said.

The proposed legislation introduces a broad approach to scams under the Competition and Consumer Act.

“This bill will make Australia one of the toughest places in the world for scammers to operate,” Jones told the Parliament on Nov. 7.

The debate on the bill was adjourned until a later session.

Key Features of the Bill

The new anti-scam bill puts tougher rules on businesses, requiring them to actively prevent scams, monitor for suspicious activity, and report incidents.

Financial institutions must improve transaction checks, while digital platforms are set to verify advertisers more strictly. Regulators like the ACCC will have more power, with penalties of up to $50 million for those who fail to comply.

The bill also creates simpler ways for consumers to report scams and access dispute resolution through bodies like the Australian Financial Complaints Authority.

New Powers to Disrupt Scams

Under the new framework, regulators, and businesses will have a legal obligation to prevent scams before they cause harm. This includes identifying and stopping scam activities in real-time.

Jones highlighted the recent HSBC scam, where large sums of money were lost over several months, noting that such damage could have been reduced under these new laws.

“Regulated entities must take reasonable steps to disrupt scams and prevent losses to consumers,” he said. He added that a “hands-off” approach, common under previous administrations, will no longer be acceptable.

Businesses will also have a 28-day “safe harbour” period to act swiftly in stopping scams without fear of legal penalties for genuine mistakes.

The bill allows the government to bring new sectors—like superannuation, insurance, and cryptocurrency—under scam prevention rules. Although not yet included, these sectors are now expected to enhance consumer protection.

“If a customer directs the bank to make a payment, banks are legally required to comply,” ABA’s CEO Anna Bligh said.

“Banks can delay, try to talk to customers, and prevent it, but they are not the final judge.

Australia Faces Surge in Scams

Scam-related losses in Australia have skyrocketed in recent years, with a staggering 84 percent increase in 2021.

In 2022, Australians lost $3 billion to scams, a 75 percent rise from the previous year.

While losses dipped to $2.74 billion in 2023—Australia’s first decline in nearly a decade—scammers still caused significant damage.

This decline followed the government’s establishment of the National Anti-Scam Centre, the Sender ID registry, and website takedown capabilities within ASIC, alongside collaborations with banks to block transfers to high-risk cryptocurrency exchanges.

“This is still an extraordinary amount of money stolen by scammers,” Jones said.

According to the Australian Signals Directorate, in 2024, cybercrime cases in Australia rose by 23 percent, with 94,000 new cases. The Australian Signals Directorate reported a 10 percent drop in proactive industry reporting from June to Aug. 2023.

According to the Department of Home Affairs, a cyberattack occurs every six minutes in Australia, often forcing companies to pay ransoms to regain access to critical data.

Hamish Hansford, Head of the Australian Cyber and Infrastructure Security Centre at the Department of Home Affairs, stressed the importance of exposing ransom payments to prevent further escalation of cybercrime.

“The payments are going to fund criminals who just get much more sophisticated through the funds provided to them,” he said.