The Australian Banking Association (ABA) has announced significant progress in the fight against scams with the release of draft industry designations and obligations aimed at banks, telecommunications companies, and digital platforms. This initiative emphasizes an ecosystem approach to combatting fraud, reflecting the growing need for collaboration among various sectors to protect consumers.
According to ABA CEO Simon Birmingham, the draft framework represents a crucial step in reducing scam losses and making it increasingly difficult for scammers to operate within Australia. “Australia is pursuing a world-first and world-leading approach to scam prevention, where criminal scammers will face tougher barriers from all angles,” he stated.
The ABA’s announcement highlights the importance of including digital platforms in this framework, as they are often exploited by scammers. Birmingham pointed out that new technologies exacerbate risks for consumers and place additional pressure on banks to safeguard their customers. He emphasized that social media companies must play a pivotal role in eliminating scam advertisements from their platforms.
Recent documents obtained by Reuters suggest that Meta, the parent company of Facebook, generates approximately 10 percent of its annual revenue from scam-related advertisements, amounting to around $16 billion per year. This revelation underscores the necessity of implementing codes that require digital platforms to prevent users from being exposed to scam ads.
The proposed obligations would compel social media companies to verify the identities of advertisers and block known scammers from accessing their platforms. Birmingham believes that these measures would significantly enhance consumer protection against fraud.
In addition to the draft codes, confirmation that the Australian Government plans to authorize the Australian Financial Complaints Authority (AFCA) as a resource for customers seeking free dispute resolution is also welcomed. Birmingham noted that banks already collaborate with AFCA and support the idea of holding digital platforms and telecommunications companies accountable for failing to meet their consumer obligations.
“The banking sector has long supported an approach that places strong industry-specific obligations on all parts of the ecosystem,” he added. The ABA intends to thoroughly review the details of these draft codes to ensure that banks can continue to enhance their strategies for protecting customers from scams.
The initiative builds on the existing safeguards established by the banking industry through the Scam-Safe Accord, which has already implemented various protective measures. Many of the requirements outlined in the draft code, such as providing name-checking technology and issuing targeted warnings about scam risks before high-risk payments, are already being met by banks.
As the consultation phase progresses, banks will collaborate closely with the government and other sectors to ensure these codes are practical and effective, ultimately enhancing consumer protection. The ABA encourages stakeholders to access the banking industry’s Scam-Safe Accord and the Treasury’s consultation package to stay informed about these vital developments.
