Jerome Laxale (Bennelong, Australian Labor Party) Share this | Hansard source

One afternoon I found myself listening to Ben Fordham's podcast on 2GB, where I heard the story of Paul Trefry. Paul is a small business owner who received a text message from ANZ informing him that his business account had been compromised. The message offered him two choices: cancel his credit card or transfer money to a new account. Paul chose the latter and transferred $130,000 to a bank account. The problem was that the message was not from ANZ. His phone said it was from ANZ, but it was from scammers, and the bank account wasn't his either. Paul lost $130,000. For any business, let alone a small business, that is a significant amount. This is not just Paul's story; it's the story of many Australians who have fallen victim to similar scams. Since raising this issue in the House Economics Committee last year, I have heard countless heartbreaking accounts of people being swindled out of their life savings. Their stories have taught me that anyone, regardless of age or background or education, can be deceived by these sophisticated criminals.

When the government came to office, Australians were losing over $3 billion a year to scams. This is a staggering figure, and what's more alarming is that the amount lost to scams has doubled each year from 2019 to 2022. Online, text message, phone and even in-person scams have become primary avenues through which Australians lose their money. These scams strip individuals of their financial resources, they destroy lives, erode trust and undermine confidence in our economic and communication systems. In 2019, the losses to scams were already in the billions but by 2022 the amount had skyrocketed to over $3 billion. Victims of scams often face more than just a financial loss; they experience a deep sense of violation and shame, with many struggling to recover their confidence and rebuild their lives.

As scammers siphon billions from the economy, the ripple effects are felt right across sectors, affecting everything from consumer spending to the stability of small businesses and driving up small business costs as well. When individuals lose their savings, they cut back on spending, which in turn affects businesses that rely on consumer confidence. Small businesses like Paul Trefry's can be especially vulnerable as a single scam can mean the difference between staying afloat or going under and completely ruin a small business's cash flow. Moreover, as we had from the member for Fowler, scams disproportionately affect the most vulnerable in society—the elderly, those with limited digital literacy, those with English as a second language, and those who are already struggling financially. These individuals are often targeted by scammers who exploit their trust and lack of familiarity with digital platforms. The consequences can be devastating.

In response to this growing crisis, our government has taken decisive action. Under our leadership we've established the National Anti-Scam Centre, which has a ready made significant strides in the fight against scams. One of the centre's early successes with the implementation of measures blocked more than 533 million scam texts between July 2022 and March 2024. The establishment of the National Anti-Scam Centre was a key promise we made to the Australian people and one that we've delivered. It's a world-leading initiative, bringing together public and private sector partners to work together to disrupt and stop scammers in their tracks. It's a model of what can be achieved when we work together across sectors and tackle complex problems. We've also bolstered the Australian Securities and Investments Commission's capacity to shutdown fraudulent websites, further cutting off scammers avenues to exploit vulnerable Australians.

The establishment of Australia's first SMS sender ID registry is another crucial component of this strategy, and why I'm commending this bill to the House today. This registry, which is at the heart of the Telecommunication Amendment (SMS Sender ID Register) Bill 2024, will play a pivotal role in preventing scammers from impersonating trusted brands through SMS, just like they did with Paul. This approach is comprehensive, combining technology, regulation and public awareness to create a multilayered defence against scams. We recognise that no single measure can eliminate the threat entirely, but by attacking scammers from multiple angles, we can significantly reduce the risk to Australians.

The Telecommunications Amendment (SMS Sender ID Register) Bill 2024 requires the Australian Communications and Media Authority to establish and maintain a register of legitimate sender IDs. This means that businesses and entities will be able to register their sender IDs and telcos. They'll be required to check SMS messages that use these IDs. If a sender ID is not registered, the telco could be required to block the message or tag it as fraudulent. This is a significant step forward in our fight against SMS impersonation scams. It will decrease the frequency and impact of these scams on consumers by disrupting the business model of these criminals. Moreover, it will provide legitimate brands and agencies with greater protection against bad actors who seek to exploit their trusted names.

One of the key aspects of this bill is its flexibility. The ACMA can engage a contracted provider to help maintain the register, and the use of the register can be made either voluntary or mandatory, depending on the government's decision later this year. This flexibility ensures that we can adapt to the evolving landscape of scam tactics and stay one step ahead of the scammers. The significance of this register cannot be overstated. By creating this legitimate, centralised database of sender IDs, we will make it much more difficult for scammers to impersonate trusted brands, and the scammers will then go elsewhere.

Let me share another story. It is of Diane and Mon, who were recently targeted by a similar scam. They received a text message from what appeared to be HSBC AU stating that a new login to their mobile app was detected in Perth. The message advised them to call a number if it wasn't them, which they did. The call played HSBC hold music and, when a man answered, he claimed he was from HSBC and that he could help with the issue. Diane and Mon, local constituents in Bennelong, were concerned. They were eager to protect their life savings and they followed the instructions of the impersonator. They provided their username and authenticated this by reading back SMS codes sent to their phone, believing they were dealing with a legitimate bank representative.

Suddenly the call ended abruptly. Sensing something was wrong, they called back and were shocked when the same man answered. It was then that their suspicions were confirmed. The scammer admitted that their money had already been stolen. Devastated, Diane and Mon immediately contacted HSBC and, after being on hold for 20 minutes, they reported the unauthorised transaction and requested that both their accounts and the recipient's HSBC account be frozen. To their dismay, HSBC staff informed them that she could not freeze the recipient's accounts.

Diane and Mon felt abandoned by the very institution they trusted to protect their money. Their experience is a stark reminder of the vulnerabilities in our current systems and of the urgent need for stronger protections—in particular, for banks to do much more to protect their clients' money. Had this SMS ID register been in place, Diane and Mon would never have received that text message purporting to be from HSBC. The scammer would not have been able to spoof HSBC's sender ID and the fraudulent message would likely have been blocked before it even reached their phones. This is the protection that this bill seeks to provide.

This has been happening for too long. It has taken this government to do something about it. One of the main tactics scammers use is to trick people into thinking they are receiving a message from a trusted source. By establishing this register, we can help prevent fraudulent messages reaching Australians in the first place. This bill sets a precedent for how we can protect Australians and their money from other forms of communications and scams in the future. As technology evolves, so too do the methods that these scammers use. It's not about addressing the current threat; it's about building a framework that can be adapted to protect Australians from future scams.

The government is continuing to fight scams. In addition to the measures in this bill, we're committing an extra $67½ million over the next four years to protecting Australians' money. This funding will support the introduction of mandatory industry codes to combat scams, enhance regulators' enforcement capabilities and launch a public campaign to educate Australians on how to identify and protect themselves from scams. The importance of public education cannot be overstated. While technological and regulatory measures are crucial, they must be complemented by efforts to raise awareness amongst the public. That's why, when local MPs do scams forums in their communities, they are so well attended. The government and its agencies simply need to do more to help educate our communities on simple steps they can take to ensure that their money remains safe. Scammers often rely on the ignorance of their victims—people who may not be aware of the latest methods or who may not know how to authenticate the message that they've received from a website, through social media or by email. By educating the public we can empower Australians to protect themselves and reduce the impact of scams.

Importantly, too, we're working on establishing tough new mandatory codes that will place robust obligations on key sectors, starting with banks, telcos and, of course, the digital platforms that we know carry a lot of scammer messages. These sectors are the most commonly targeted by scammers, and it's essential that they take more responsibility for protecting consumers. In both circumstances I gave you today, Deputy Speaker Wilkie, you could argue that the bank was aware that these methods were being used to scam those people out of their money. The mandatory codes seek to address that and ensure that banks are fine. In some circumstances, banks will need to refund customers when they are aware of the scams that are taking place. These mandatory codes will be a significant step forward in holding banks, social media and telcos accountable for their role in preventing scams. We want to create a safer environment for consumers to transfer money and to protect their life savings.

The stories I've shared today were shared with the authority of the local constituents who contacted me. We need to share these stories because they highlight the urgent need for stronger protection and proactive measures to safeguard Australians from the ever-evolving tactics of scammers. I urge the entire parliament to support this bill and show these scammers that we're taking a stand against criminals who prey on our most vulnerable citizens, and we're sending a message to the world that Australia will no longer be an easy target for their craft.

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