Facebook, banks to face huge fines if they turn a blind eye to scams

Banks, telecommunications companies and digital platforms such as Facebook are set to face huge fines if they turn a blind eye to scams.

Banks, telecommunication companies and digital platforms including Facebook are set to face extraordinary new fines of up to $50 million if they turn a blind eye to dodgy scams.

Assistant Treasurer Stephen Jones is set to release the draft legislation outlining the reforms on Friday under a push to demand accountability from social media giants and big business.

Pledging to work towards ensuring Australia has some of the toughest laws in world, he warned the way forward was to place stronger obligations on the key businesses within the scam’s ecosystem.

Banks, telecommunication companies and platforms such as Facebook are set to face huge fines if they turn a blind eye to dodgy scams. (Photo by Kirill KUDRYAVTSEV / AFP)

“The Albanese Government is working to make Australia the toughest target in the world for scammers,” he said.

“We want to ensure that the best protections anywhere in the world are available to people here in Australia.

“Australians are losing too much money to scams and while we’ve bucked the international trend where scams are doubling every year, losses are still far too high.”

Former Sunrise host’s war on scams

Former Sunrise host David Koch has been calling for action for years after scammers used his image and “dodgy quotes” to rob Australians of thousands of dollars.

“I had a bloke on the weekend contact me through Facebook, abusing me because he had lost $30,000 on a scam that used my picture and dodgy comments from me,” he said.

Images and fake quotes from David Koch have been used to lure Australians into scams.

Mr Koch has called out the scammers in the past.

Kochie said scammers had been using his photo and fake quotes to scam people for years.

“They appear on Facebook, they appear on LinkedIn, they appear on that Taboola feed on big mainstream websites and I can’t do anything about it.”

Two years ago, he demanded the Assistant Treasurer answer why social media giants are not scrutinised as heavily as mainstream media platforms are.

“Here at Channel 7, we get sued by you and the ACCC if we run a dodgy ad,” he said.

How the changes will work

The Scams Prevention Framework to be released for public consultation aims to establish scam prevention principles in legislation that will guide industry-specific, mandatory obligations on designated sectors.

The sweeping new powers will allow the minister to designate sectors and establish sector-specific codes.

The codes will then impose mandatory obligations on designated sectors to combat scammers and protect Australians.

The minister will initially designate banks, telecommunication service providers, and a range of digital platform services.

Under the changes internal dispute resolution mechanisms that are accessible and transparent for customers must be put in place.

Designated entities must be a member of the prescribed EDR scheme to provide a regulated service in Australia.

“Cracking down on criminals trying to rip off hardworking Australians is a priority for this Government,” Communications Minister Michelle Rowland said.

“The Scams Protection Framework builds on the package of reforms the Albanese Government is already delivering to protect Australians from scams, including the Sender ID Register which is being established to block fake SMS duping Australians.

“I look forward to our regulators and industry working together to finalise the mandatory industry codes to strengthen protections for Australian consumers.”

Originally published as Facebook, banks to face huge fines if they turn a blind eye to scams