The Australian government has opened a consultation on a proposed Scams Code Framework, aimed at strengthening protections for consumers and businesses amid a sharp rise in fraud. Reported scam losses reached at least AUD $3.1 billion in 2022, an 80 per cent increase on the previous year, driving calls for more consistent action across key sectors.
Why Reform Is on the Table
Australia’s current anti-scam measures are fragmented. Telecommunications providers operate under an enforceable code to block scam calls and messages, but banks and digital platforms do not face equivalent obligations. The government says this patchwork approach creates gaps that scammers can exploit.
Recent steps include the creation of the National Anti-Scam Centre, ASIC’s removal of thousands of investment scam websites, and ACMA’s work on an SMS sender ID registry. Banks have also introduced a voluntary ScamSafe Accord. However, regulators have identified inconsistent scam detection and response practices across the sector.
The proposed framework would bring these efforts together under a single regulatory structure. It would initially apply to banks, telecommunications providers, and digital platforms, with scope to expand to other sectors such as superannuation and cryptocurrency exchanges.
What The Proposed Framework Would Require
Under the proposal, the framework would be set out in primary legislation, likely through amendments to the Competition and Consumer Act. Businesses in designated sectors would be subject to principles-based obligations to prevent, detect, disrupt and respond to scams.
These obligations would include maintaining a board-approved anti-scam strategy, putting systems in place to block scam content and transactions, and warning customers about suspicious activity. Firms would also be expected to share intelligence quickly with other organisations, regulators and the National Anti-Scam Centre.
Clear reporting and complaints processes would be required, alongside defined routes to dispute resolution and compensation.
Sector-specific codes would add tailored requirements. For banks, this could include confirmation-of-payee checks, transaction monitoring and rapid fund recovery. Digital platforms may need to verify advertiser identities and remove scam content quickly. Telecommunications providers would continue blocking scam calls and messages under an updated code.
Oversight and Next Steps
Enforcement would be shared between the ACCC, ASIC and ACMA. Penalties for non-compliance could reach $50 million or 30 per cent of turnover, with the government considering harmonised penalties across sectors.
While the framework will not eliminate scams entirely, ministers say it aims to make Australia a harder target for fraudsters. If implemented, the regime would mark a significant shift towards a coordinated, whole-of-ecosystem approach to consumer protection.
Preparing for Mandatory Anti-scam Obligations in Australia?
If you’re assessing how proposed industry codes could affect your organisation’s compliance and risk approach, our team can help. Trusted AI, powered by human oversight, supports clearer regulatory intelligence as anti-scam expectations continue to evolve.