Zali Steggall (Warringah, Independent) Share this | Hansard source

Scams are everywhere. We get random phone calls claiming to be from Melbourne or somewhere in Queensland. We get text messages at 4 am in the morning saying we need to pay our tolls urgently at the link provided. Ninety-six per cent of Australians were exposed to scams in the five years up to 2021 alone, and that is increasing. In 2023, we lost some $2.74 billion to scammers. That's more than $5,200 per minute.

In the UK, banks are now required to reimburse victims where they have been tricked—generally by masquerading as a legitimate business or person—to authorise a payment. Meanwhile in Australia, banks refuse and are not required to refund victims. It's vital for the government to force financial institutions to increase the friction between financial transfers to enable tracking and recovery of funds by victims.

I regularly hear of those who have been scammed in Warringah. They get in contact with my office. They are distressed. They almost always have no way to seek redress or to get their money back. One constituent's son had his house deposit of just over $100,000 scammed by someone impersonating his lawyer. In an era where bank cheques are becoming a thing of the past and so many transactions are done electronically, it's absolutely vital that we increase friction and make financial institutions more responsible so that they take action to limit scams.

I'm glad to say that some northern beaches seniors aren't taking scams lying down; they're fighting back. Too often we think scams are happening to older Australians, who may not be so familiar with electronic means, but they are happening to all age groups—to young people, in particular. Young professionals are getting scammed in relation to funds they simply cannot afford to lose. We had, locally, great coverage in the Manly Observerin the lead-up to last Christmas, showing how Manly Computer Pals ran tutorials for seniors to help them avoid possible scams and raise their own digital literacy. We need to do more of that. We need more information and education to make sure we protect Australians from scams.

I know the government is responding. They have established the National Anti-Scam Centre and there is work to introduce the mandatory codes framework, but consumer groups are calling for the government to go further and make financial institutions liable for their customers' scammed losses, as the financial institutions are ultimately facilitating the money being transferred. They are the ones with visibility on who is receiving the funds. They have the capacity to increase friction and ensure recovery of funds. If they are made liable to reimburse funds, they will be motivated to put greater protections in place for consumers.

Losses to scams are now so great and frequent that the government must act. We are seeing New Zealand and Singapore moving in the direction of the UK by introducing measures for greater liability of financial institutions. The government is moving on mandatory industry codes, and that's welcome. But alongside that and enforceable codes, consumer groups are calling for mandatory reimbursement of consumer losses by financial institutions. As I said, this will incentivise them to do better, to create that friction and better recovery, a fair and simple dispute resolution pathway for consumers and a mechanism for banks to recover the cost of scam losses from other bodies.

Time is of the essence in this sector. In the meantime, I tell constituents that there are basic things they can all do to protect themselves and their loved ones from scams. There are three key steps to remember. Firstly, stop. Don't give money or personal information to anyone if you're unsure. Scammers will create a sense of urgency. Don't rush to act. Take your time and don't give money or personal information. Secondly, think. Ask yourself, 'Could the call or text be fake?' Scammers pretend to be organisations or people you know and trust. All too often for parents, that will be your children. Contact the organisation—using information you rely on and that you source independently through means that you trust—so that you can verify if the call is real or not. If you're not sure, hang up. Thirdly, protect. Act quickly if something feels wrong. Trust your gut. Contact your bank immediately if you have authorised a transfer or if you have lost money in a scam. If you have provided personal information, call IDCARE on 1800595160 to get some protections. It is vitally important that we protect Australians and their hard earned money from the scammers.

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