The Australian federal government is intensifying its efforts to combat scams, which resulted in losses of over A$2.7 billion for Australians last year. In response, the government has released a draft scam prevention framework aimed at protecting the community from scams. The framework takes a comprehensive approach to address vulnerabilities that scammers exploit. While the framework places more responsibility on social media companies, banks, and telecommunications companies, the increasing use of artificial intelligence in scams poses an ongoing challenge. To effectively achieve its goals, the framework needs to have a broader scope.
Australia is a popular target for cyber criminals globally, with over 600,000 scam reports in 2023, marking an 18.5% increase from the previous year. However, the reported figure only represents a portion of the actual scams, as many go unreported. Scammers are increasingly leveraging new technologies, such as AI and deepfakes, to develop more sophisticated scams.
The proposed scam prevention framework primarily focuses on organizations rather than victims. It requires banks, social media platforms, and telecommunication companies to proactively identify, filter, and prevent scam-related content and transactions. For instance, search engines and social media platforms would need to authenticate and verify the identity of business users and advertisers to prevent the proliferation of scam advertisements and accounts. Non-compliant companies could face penalties of up to A$50 million. While the framework does not mandate banks to reimburse scam victims, it establishes a transparent dispute resolution system.
Prior to the introduction of the anti-scam framework, the federal government had already emphasized the importance of cybersecurity. It appointed a dedicated minister for the cyber security portfolio and launched initiatives like the National Anti-Scam Centre, which received a funding of $58 million.
Other jurisdictions, such as the United Kingdom, have also intensified their efforts to combat scams. However, recent changes in the UK have reduced the maximum reimbursement amount for scam victims, favoring banks.
While the A$50 million penalty is expected to incentivize banks, telcos, and social media companies to enhance their scam prevention measures, solely blaming these organizations without transparent investigations may not effectively help scam victims. It could result in legal battles between government prosecutors and corporate lawyers. It is crucial to address the entire scam ecosystem and hold all involved parties accountable. Scams often begin with criminals gaining access to individuals’ contact details, such as mobile phone numbers. Text message-based scams and scam calls have been the most reported and resulted in the highest losses.
The government’s aim to compel social media platforms like Meta to do more to combat scams is a step in the right direction. However, individuals can also take immediate steps to protect themselves, such as being cautious when sharing personal contact details and accessing available resources to stay informed and avoid falling victim to scams.