Banks launch war on tech giants who are failing to protect Australians

Australian banks are demanding tech giants be forced to sign up to new mandatory scam codes, and attacked social media platforms for failing to protect customers from scammers.

Australian Banking Association chief executive Anna Bligh has told federal MPs that tech giants including Mark Zuckerberg’s Meta must be forced to abide by new mandatory scam codes. Picture: Paul Braven/AAP Image

Australian banks are demanding tech giants including Mark Zuckerberg’s Meta be forced to sign up to new mandatory scam codes and have launched a broadside against social media platforms for failing to protect their customers from scammers.

After Commonwealth Bank chief executive Matt Comyn slammed tech companies including Meta and Apple for getting free passes on tax and regulation, new polling reveals Facebook and Google are considered the worst-performing in shielding Australians from scams.

Australian Banking Association chief executive Anna Bligh, who represents 20 banks including the big four, has urged federal MPs to compel social media companies – including Meta-owned Facebook – to abide by “strong mandatory industry scams codes”.

The Weekend Australian can reveal polling commissioned by the ABA last month showed only 27 per cent and 40 per cent of Australians felt Facebook and Google, respectively, were adequately educating customers on how to avoid becoming victims of scams.

The poll of 1571 voters, conducted by Pyxis, also found only 28 per cent and 42 per cent of Australians believed Facebook and Google were adequately developing systems and secure platforms to minimise scams.

Australian banks were the most trusted in educating customers (61 per cent) and protecting them from scams (57 per cent), ahead of the federal government, payment companies and telcos and internet service providers.

The damning report card for Facebook and Google comes as National Anti-Scam Centre data this month found losses from scams originating from social media platforms had surged by 66 per cent – up from $56m in 2021 to $93m in 2023.

The Albanese government has flagged it will soon introduce legislation for a mandatory scams code outlining the responsibilities of the private sector, focused on banks, digital communications platforms and telcos.

Despite Facebook Marketplace emerging as a hotspot for scams and fraudsters using social media platforms to promote investment scams, Meta and other tech companies are pushing back against a mandatory code.

In a letter to federal MPs, Ms Bligh said 68 per cent of all scam losses in the December quarter originated from social media, phone and e-mail contact.

“That is why the next step must be government legislation to establish mandatory codes with clear obligations on banks, telecommunication companies, and digital platforms, protecting Australians from the scourge of scams,” Ms Bligh wrote.

“Mandatory codes must also apply to payments and crypto­currency platforms, which can be used by scammers to move money offshore.

“There are reports some social media companies, in particular Meta, only support a voluntary code process. The ABA believes that the time for voluntary scam codes has long passed. We urge all stakeholders to step up and play by the same rules to best protect our community.”

Tensions between the Albanese government and Meta are high after the US company walked away from payment-for-content deals with Australian media outlets.

Under the Media Bargaining Code, Meta and Google agreed to deals with media companies in 2021 worth close to a combined $250m a year for Australian news publishers, which were due to expire in the second half of 2024.

Australian banks have already ramped up anti-scam activity, with increased blocking of transfers to cryptocurrency resulting in 74 per cent fewer losses. Bank transfer losses were down by 31 per cent in the December quarter.

Ms Bligh said “scam-proofing Australia will require a collective effort … better protecting Australians from scams can only be achieved if every part of the chain leans in as hard as they can”.

“Banks have come to the table to work with government on their mandatory scams code and I strongly encourage social media platforms to do the same.”

Amid reports tech companies including Apple are pushing back against separate payment systems reforms, Ms Bligh said the ABA “believes strengthening the payment system regulatory framework is also critical to protect Australians in the digital age”.