AFCA hails passage of world-first Scams Prevention bill

The Federal Government’s successful passage of the Scams Prevention Framework Bill 2025 has been hailed by Australia’s chief financial complaints authority as a “significant step forward” in combating the nation’s multi-billion-dollar scam scourge.

The Australian Financial Complaints Authority (AFCA), set to be a key player in the anti-scams scheme, welcomed the legislation, which it said would bring together relevant sectors necessary to “effectively disrupt and prevent scams”.

The framework for the new codes will require banks, telecommunications companies and digital platforms to take active steps to support the prevention, detection, reporting, disruption and response to scams.

AFCA’s chief ombudsman and CEO David Locke said the new legislation, which address longstanding “legislative and regulatory” inadequacies, would, he declared, compel “robust action to drive out this evil traffic”.

“It will enable the apportionment of liability across different businesses and for a single joined-up redress scheme.”

AFCA is set to play a key role in supporting the framework, with the Government flagging the ombudsman as the designated “single external dispute resolution scheme for scams” – accepting and processing scams complaints from digital platforms (including social media platforms) and telcos alongside its existing remit of banks and other financial firms.

For scams victims, the Government says, this single route offers “clear pathways to compensation if the business fails to meet robust standards”.

Locke said the ombudsman will actively collaborate with Government, the regulators, industry and consumer groups to support the legislation’s objectives.

This, he added, will ensure that all stakeholders will be able to deliver “a robust, fair, independent and efficient dispute resolution process”, with AFCA also supporting firms in developing and enhancing their internal dispute resolution practices.

Commenting on the passage of the bill, Australian Competition and Consumer Commission (ACCC) deputy chair Catriona Lowe said the now-legislated framework delivers a “critical step in the fight against scams – creating overarching principles that all members of designated sectors must comply with.

“We know scammers will exploit weak links in the system – so these principles are key to a consistent approach,” Lowe said.

ACCC will also play a key role in monitoring regulated entities’ compliance with the framework’s key principles.

Businesses that do not meet their obligations under the framework, the ACCC notes, may face fines up to $50 million.

The ACCC’s most recent Targeting Scams annual report, released in 2024, revealed Australians lost more than $2.7 billion to scams in the previous calendar year.