Gov may mandate anti-scam strategy for businesses

Businesses could be made to develop, maintain, and implement an anti-scam strategy, under regulations being canvassed by the government.

The proposal would see companies lay out their approach to scam prevention, detection, disruption and response, based on their evaluation of the risk.

The measure is part of an $86.5 million program to fight scams, which includes establishing a National Anti‑Scam Centre, an SMS Sender ID registry and uplift work by the Australian Securities and Investments Commission (ASIC) to spot and remove investment scam websites.

The government intends [pdf] to bring in new mandatory industry codes, outlining the duties of the private sector regarding scam activity, initially focusing on banks, digital communications platforms and telecommunications providers.

Expansion sectors could "include the superannuation sector, digital currency exchanges (cryptocurrency), other payment providers, and transaction-based digital platforms like online marketplaces,” the consultation states.

Feedback is now sought from the Treasury and the Department of Infrastructure, Transport, Regional Development, Communications and the Arts (DITRDCA) on the proposed measures.

While the government recognises not all scam and fraud will be eradicated, it does intend to create a harder environment for bad attacks to operate in.

“There is currently no overarching regulatory framework that sets clear roles and responsibilities for the government, regulators, and the private sector in addressing scams," it said.

“The government has committed to introducing new mandatory industry codes to outline the responsibilities of the private sector in relation to scam activity, with a focus on banks, telecommunications providers and digital platforms."

The government's plan is underpinned by three key principles, “addressing the gaps in the current approach.”

It wants industry to take a “whole-of-ecosystem” approach, which it believes is needed “to ensure that those best placed in the system deal with the scams threat.”

This would see “a coordinated effort between government, regulators, and the private sector” to prevent scammers reaching Australians via calls, SMS and digital platforms, consumer education, recover payments lost and offer clear support pathways.

Further “mechanisms” would need to be created to establish a way for regulators of specific sector to develop codes and standards to detect, disrupt and respond to scams.

Businesses that did not comply faced consumer redress obligations and financial penalties.

Assistant Treasurer and minister for financial services, Stephen Jones said “these tough new codes would make it really clear what the obligations are on industry to prevent scams and better protect people and businesses.”

A short survey has been made available for members of the public who wish to participate in the consultation process.