Kate Chaney (Curtin, Independent) Share this | Hansard source

Australian consumers and businesses face a growing risk from scams. Since being elected, I've had lots of reports from constituents of all demographics who have fallen victim to a range of scams. According to the National Anti-Scam Centre, there were 600,000 reports of scams last year and losses of $2.7 billion, and that's just the ones that were reported. We know that many people don't report scams. They feel like they shouldn't have been fooled, or they don't think there's any point in reporting it, or they don't even know how to report it.

The challenge with scams is that they're often perpetrated by foreign criminals, out of reach of Australian law enforcement, so if we can't get them we need better controls in place to regulate the ways they reach Australia through three access points: banks, telecommunications companies and digital platforms. Now, while some sectors like the telecommunications sector have industry codes to reduce scams, other sectors in the scams ecosystem have no specific forcible antiscam requirements.

The ACCC has identified that digital platforms do not take sufficient and consistent steps to protect consumers from scams, and ASIC has found that the overall approach to scams in Australia's major banks is variable and less mature than expected, with gaps and inconsistencies in scam detection, response and victim support. Banks, telecommunications companies and digital platforms must be incentivised to take all reasonable steps to prevent scammers from using their channels to target Australians. Getting this right requires a good understanding of what these companies can do and flexibility to cover new types of scams.

Many of the steps that could be taken will add friction to our online transactions, making it a little bit more challenging to get some things done. These could include delays, or requirements to provide identity or confirm instructions. But there are also things that the sectors can do behind the scenes that would make a big difference. Liability for scams must be linked to whether or not banks, telecommunications companies and digital platforms are taking all reasonable steps, and remedies must be easy to navigate for scams victims so that they don't fall between the cracks of the complicated ecosystem of banks, telecommunications companies and digital platforms.

I've been advocating for greater awareness and protection through speeches, meetings and events. I spoke in parliament last year about some stories of very sophisticated scams that had come through my office. I told Lisa's story. She lost $750,000 in a scam related to the setting up of an account with ING Bank. I told John's story. He's an experienced share trader who lost $2.7 million in a sophisticated international scam by worldwide brokers. I told Tim's story. His mother lost $800,000 in a scam that resulted in a capital gains tax liability, despite her having been scammed out of the assets. While waiting for stronger legislative protections, we held a Curtin scams awareness workshop with the ACCC to try to arm people against scams. Again, I heard so many stories from people about their experiences, and we gave them some tips for spotting scams.

As well as meeting with affected constituents and experts like Choice and the consumer law action network, I met with the Assistant Treasurer last year to advocate for tighter banking regulations and enforceable industry codes of conduct, with appropriate pathways to compensation. The Assistant Treasurer assured me that codes of conduct were being developed and that legislation would be passed very soon to make them mandatory. We hope that happens soon. It hasn't happened yet. The proposed scams code framework has not been legislated, and as far as I know the codes have not been finalised.

In February, I co-launched the Parliamentary Friends of Scams Protection with the member for Kooyong and Senator Walsh to draw parliament's attention to the urgency of this issue. While we wait, reports of those affected by scams keep coming in to my office. As a reminder that we're still waiting, like many Australians I get a scam text message or a call almost every day telling me that my package has arrived, that my account will be cancelled unless I update my credit card or that I haven't paid my toll fee.

This problem is not going away. With time running out in this term of parliament I urge the government to legislate the mandatory codes of conduct for banks, telecommunications companies and digital platforms as soon as possible, with appropriate obligations on those in the scams ecosystem and clear remedies if those obligations are not met. We need to protect Australians from scams as soon as possible.

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