Scam prevention framework a step in the right direction
Scam prevention framework a step in the right direction
Forensic Services experts at BDO have welcomed the release of draft legislation to establish a new Scam Prevention Framework to better protect consumers against the rising risk posed by scammers.
The framework would legislate scam prevention principles to force designated sectors to prevent, detect and respond to scams.
Banks, telecommunication service providers and digital platforms including social media companies would be the first sectors to be designated.
Under the proposed legislation, the Australian Competition and Consumer Commission have the power to impose penalties of up to $50 million on businesses that fail to meet their obligations.
BDO's Forensic Services Partner, Conor McGarrity, welcomed the proposal, but said the proposed framework is far-reaching, and will require a comprehensive and joined-up approach between the private sector and regulators.
“The key to the success of this proposal will be ensuring there is a consistent definition of what constitutes a scam and that it is consistently applied,” Conor said.
“It will be important to ensure that the same definition doesn’t reach too far, and encompass broader fraud considerations that are not scams.”
Under the framework, an external dispute resolution tribunal for victims of scams will be established to simplify the process of money retrieval for victims.
BDO's Forensic Services Partner, Stan Gallo, said the legislation follows significant success from previous attempts to protect Australians against scammers.
“On average Australia experienced a 40 per cent decrease in total losses per scam from 2023 to 2024,” Stan said.
"Australia's approach to scam prevention appears to be gaining traction.
"Our data indicates a significant drop in the average loss per scam report, reflecting effective intervention strategies and a growing public awareness.
This is a positive sign, but it also underscores the need for continued vigilance and adaptation of our anti-scam strategies.”
The legislation is now open for public consultation.
For media enquiries:
Tate Papworth
Manager, Media
E: tate.papworth@bdo.com.au
Ph: 0433 411 189