Labor to force social media companies, banks to fight scammers

The Albanese government will force social media companies, banks and telcos to comply with new codes aimed at fighting scammers online.

Social media companies, banks and telcos will be forced to do more to stop Australians getting scammed out of billions of dollars each year, under a new Albanese government code.

Assistant Treasurer Stephen Jones on Wednesday will unveil the government’s plan to ensure key players are doing more to fight scammers, which includes new mandatory codes.

Under Labor’s plan, social media companies will be fined if they fail to lift their game. Picture: NewsWire / Nicholas Eagar

Failure to comply with the codes will result in fines and victim compensation.

“To lock in the benefits of a digital economy we have to address these risks and ensure that Australians feel safe and secure,” he will tell the National Press Club.

The plan zeroes in on social media platforms.

While scam losses are down overall, reports of scams on social media are up 17 per cent in 2023 with reports of scams up 31 per cent, Mr Jones will say, accusing platforms of “dragging their heels.”

“It is offensive that digital platforms let scammers use their network to target victims,” he will say.

“And worse that they accept the revenue that comes from these criminals placing scam ads on their platforms.

“Digital platforms have a moral obligation to join the fight as part of their social licence.

“It’s really time for them to get on the side of consumers.”

The government says banks must do more to stop Aussies losing billions to scammers each year. Picture: Newswire

But social media is just one part of the equation.

Banks must do more to detect and prevent their customers making transfers to criminal actors, Mr Jones will say.

He will argue the current ePayments code, which provides some protections when unauthorised payments are made, are not comprehensive enough.

“A fundamental characteristic of scams is that they are transactions that are authorised – through deception – by the victim, so the law is not fit-for-purpose,” Mr Jones will say.

“Compensation for inaction, for negligence, for failing to meet an obligation is a critical part of our framework.”

Originally published as Labor to force social media companies, banks to fight scammers