The Albanese government is set to implement stringent new codes requiring social media companies, banks, and telecommunications firms to enhance their efforts in combating online scams.

Under the forthcoming regulations, these sectors will be mandated to take more significant actions to protect Australians from losing billions of dollars annually to scams. The Assistant Treasurer, Stephen Jones, is expected to announce the comprehensive plan on Wednesday, detailing the government’s strategy to intensify the battle against fraudsters.

The new codes will impose strict compliance requirements on these entities. Non-compliance will attract substantial penalties and mandatory compensation for scam victims.

“To lock in the benefits of a digital economy, we have to address these risks and ensure that Australians feel safe and secure,” he will tell the National Press Club.

The Albanese government’s new plan targets social media platforms with renewed urgency.

Despite an overall decrease in scam losses, social media reports have surged by 17 percent in 2023, with the total number of scam reports rising by 31 percent. Assistant Treasurer Stephen Jones will highlight these figures, criticising social media platforms for their slow response to combating fraud. Jones will accuse these platforms of “dragging their heels” in addressing the growing issue.

“It is offensive that digital platforms let scammers use their networks to target victims,” he will say.

“And worse, they accept the revenue that comes from these criminals placing scam ads on their platforms.

“Digital platforms have a moral obligation to join the fight as part of their social licence.

“It’s really time for them to get on the side of consumers.”

While social media is a significant concern, it is only one aspect of the broader issue.

Assistant Treasurer Stephen Jones will emphasise that banks need to enhance their efforts to detect and prevent customer transfers to criminal entities. He will contend that the current ePayments code, which offers limited protection for unauthorised transactions, is insufficient and requires substantial improvements to address emerging threats.

“A fundamental characteristic of scams is that they are transactions that are authorised—through deception—by the victim, so the law is not fit-for-purpose,” Jones will say.

“Compensation for inaction, for negligence, or for failing to meet an obligation is a critical part of our framework.”

Editors Publicspectrum

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