Banks welcome draft scams codes progress

The ABA welcomes today’s release of draft industry designations and framework for scams code obligations for banks, telecommunication companies and digital platforms – reinforcing the importance of an ecosystem approach in the fight against scammers.

ABA CEO Simon Birmingham said the draft materials were the next piece of the puzzle in ongoing efforts to drive scam losses down even further and make it harder for scammers to operate in Australia.

“Australia is pursuing a world first and world leading approach to scam prevention, where criminal scammers will face tougher barriers from all angles,” Mr Birmingham said.

“Scams are a global scourge that no government nor any single industry can solve alone, which is why Australia’s all-encompassing ecosystem framework is essential for success.

“New technologies, especially the abuse of digital platforms, place consumers at ever greater risk and banks under greater pressure on how to help protect their customers.

“The most important feature of this framework is the inclusion of digital platforms, which are abused by scammers, and can play the greatest role in stopping scams at the source.

“Documents recently uncovered by Reuters show that Meta has been generating around 10 per cent of its total annual revenue from scams advertisements, knowingly profiteering by charging scammers more for their online ads.

“Meta’s secret receipt of $US16 billion per annum in scam-based advertising revenue is proof of why these codes must force digital platforms to stop users from being exposed to scam ads.

“Proposed obligations to require social media companies to properly verify the identity of advertisers on their platforms and block scammers from those platforms would be a huge boost in protection from scammers for Australians.”

Confirmation that the Australian Government intends to authorise the Australian Financial Complaints Authority (AFCA) as the place for customers to access free dispute resolution in accordance with these important new safeguards is also welcome.

“Banks already work with AFCA and we welcome the intent for digital platforms and telcos to be held to account where they have failed to meet their obligations to consumers, including potential avenues for redress where obligations have not been met,” said Mr Birmingham.

“The banking sector have long supported an approach that places strong industry-specific obligations on all parts of the ecosystem. We will now closely review the details of these draft codes ensuring banks continue to strengthen the arsenal in our toolkit to protect our customers from scams.

“The Scam Prevention Framework will build on the world-leading safeguards Australia’s banks have already put in place through the banking industry’s Scam-Safe Accord.

“Banks are already meeting many of the requirements outlined in this draft code including offering name-checking technology and providing targeted warnings about scam risks to customers before they make high-risk payments.

“Banks will now work closely with the Government and other sectors during this consultation phase to ensure these codes are practical, effective and ultimately deliver stronger protections for consumers.”

Access the banking industry’s Scam-Safe Accord here as well as Treasury’s consultation package here.