Government unveils support for scam victims in latest crackdown

Victims of scams could have an easier time getting compensation with the federal government announcing the latest crackdown on fraudsters.

Victims of scams could have an easier time getting compensation following the latest round of federal government action targeting fraudsters.

The Albanese government has announced it would put $14.7m into setting up a single pathway for scam victims to seek compensation from within the Australian Financial Complaints Authority (AFCA).

The move would let victims make claims through an independent channel if they cannot reach a resolution with banks, telecom providers or social media networks.

Announcing the latest measurers, Assistant Treasurer Stephen Jones said businesses must protect their customers.

Assistant Treasurer Stephen Jones says the new measures will give scam victims ‘a clear pathway for redress.’ Picture: NewsWire / Gary Ramage

“Our scams crackdown will cut off the avenues scammers use to target Australians by setting a high bar for what businesses must do to prevent them,” he said.

“Scam victims will have a clear pathway for redress.

“We want victims of scams to know the government has their backs, and we want businesses to understand that they have a responsibility to protect Australians from these often devastating scammers.”

Victims would be able to lodge claims against multiple entities.

For example, someone who lost money in a social media scam could make a claim against both the social platform and their bank.

Both could be liable if AFCA found they failed to put adequate protections in place.

The Albanese government has been urging businesses, especially social media platforms, to do more to stop Australians getting scammed out of billions of dollars each year.

While scam losses have been dropping overall, reports of scams on social media were up 17 per cent in 2023.

The government unveiled new mandatory codes in July forcing social media companies, banks and telcos to step up.

Australians lost $2.74bn to scams last year.

Originally published as Government unveils support for scam victims in latest crackdown