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

Fighting scams has been one of my personal priorities since I came to this place. I've got the privilege of serving on the House Economics Committee, and, through public inquiries, I've pushed for stronger protections for scam victims and demanded greater accountability from banks, telecommunications providers and digital platforms. In my time here, I've questioned the big banks directly on their inconsistent responses to scams and raised the need for a coordinated approach to tackle these crimes.

When I sat down to write this speech, it made me reflect on the experiences that people in my electorate have shared and how they will be personally impacted by this legislation. I want to share two stories with you. Amy from North Epping contacted my office after losing over $1,000 in what she thought was a safe transaction through a social media chat group. She acted quickly, filing a police report and notifying her bank within an hour, but was told that the recovery of her funds was unlikely. She expressed her frustration with the 10-day investigation period and the lack of immediate measures to halt fraudulent transfers. Then there's Sonny, who trusted a professional-looking offer to transfer over $80,000 into what he thought was a high-interest account at an established bank. Everything about the scam seemed legitimate, from the paperwork to the communication. It wasn't until he realised the fraud that he discovered the money was gone. Despite reporting his case to the bank and to the police, his funds remain unrecovered and he's left with no clear path forward.

This legislation is for people like Amy and Sonny. It's for the Australians who have been let down by gaps in our system and who deserve better. It's for the communities, families and individuals who expect the government to do something to keep their money safe. There are thousands upon thousands of Australians who have played by the rules, who trusted the systems that they relied on and still found themselves targeted by sophisticated criminals. It's not just their financial stability that's shaken; it's their confidence, their peace of mind and, in many cases, their relationships with their family and friends and with the institutions they thought would protect them.

In 2023 alone, Australians lost $2.7 billion to scams. Behind every dollar stolen is a person, a family or a small business left to pick up the pieces. It's the retiree who loses their life savings through a fraudulent investment scheme. It's the small business owner unable to pay staff because they were tricked into sending lots of money to a fake supplier. It's the parent who thought they were securing their child's future, only to see their savings vanish. These are not hypothetical scenarios; they're real stories I've heard time and time again. These scams do not just take money; they take trust. They exploit the systems and institutions we all rely on.

The numbers, while staggering, only tell part of the story. Behind each dollar lost are people dealing with the emotional distress, shame and even mental health challenges that arise from being deceived. The retiree who sees their financial security evaporate overnight is left questioning their judgement and wondering how they will make ends meet. The small-business owner who transfers funds to a scammer is facing not just financial hardship but also the weight of their staff's livelihoods. And the family who loses their savings is forced to navigate the heartbreak of rebuilding what was meant to be a foundation for the next generation. Scams do not just take money; they take trust. It's very important that we restore that trust.

For years, the response to scams has been fragmented. Protections have varied across industries, and, while some sectors have taken steps to improve, others have lagged behind. This piecemeal approach has left Australians vulnerable and has created an environment where scammers can operate willy-nilly. The inconsistencies in how industries respond to scams mean that whether or not you are protected can depend more on luck than any systemic safeguard. This legislation changes that. The Scams Prevention Framework introduced in the bill is the first economy-wide reforms designed to tackle scams comprehensively. It ensures that every sector scammers exploit—that is, banks, telecommunications providers and digital platforms—are all held to account equally. Under this framework, regulated entities will be required to take reasonable steps to prevent, detect, report, disrupt and respond to scams.

This isn't just about reacting to scams as they occur; it's about preventing them from happening in the first place. It's about strengthening the systems that scammers exploit, whether that's the SMS service used to send fraudulent messages or spoof centre IDs, the social media platforms used to post fake ads—and we've all seen them—or the banking systems used to move stolen money. This legislation ensures that all known areas are covered and that every player is equally responsible for protecting people's money.

What sets this framework apart is its enforceability. Industries have for too long been able to shirk responsibility with little consequence for their inaction. This legislation ensures that regulators have the tools they need to enforce compliance. Civil penalties of up to $50 million will apply to the most egregious breaches, sending a clear message to everyone involved. Failing to protect consumers is not an option. For victims, this legislation provides clear pathways to seek redress. Regulated entities will be required to establish internal dispute resolution processes and participate in external schemes like the Australian Financial Complaints Authority. Victims will not have to navigate a confusing maze of responsibilities; they will have a single, straightforward process to get the help they need.

This legislation also recognises that scams do not happen in isolation. They involve multiple touch points: a fraudulent text message, a fake social media ad, and that bank transfer. That's why this framework takes a holistic approach, requiring all sectors involved in the scam ecosystem to work together. Whether a telco blocks the scam call, a social media platform removes the fake ad or a bank stops a suspicious transfer, every part of the system has a role to play. This collaborative approach is essential because scammers don't respect boundaries between industries—they actually exploit them.

Some, like the member for Goldstein, have argued for a mandatory reimbursement model like the one in the UK, where only the banks are required to compensate victims of scams. Where this legislation is better is that it puts all those involved on the hook. Scams don't start and end just with banks; they begin with fraudulent messages and deceptive advertising. Focusing solely on banks ignores the critical role that the telecommunication sector and the social media sector play in perpetrating scams and also the role they need to play in preventing scams. This legislation deliberately takes a broader view, and that idea of shared responsibility underpins the framework. The banks will have to monitor suspicious transfers and strengthen their fraud detection systems, telecommunications providers must take proactive measures to block scam messages and calls, and digital platforms must crackdown on the spread of fake ads and fraudulent schemes. These are not optional actions—they are the fundamental obligations of this legislation.

We want to take scams seriously, and we've done that since coming to government. Since we've come to government we've opened the National Anti-Scam Centre and we've seen the first sustained reduction in scam losses in years—a 43 per cent decrease in scam losses in the final quarter of 2023 compared to the same period the year before. These results are promising, but they are just the beginning. This Scams Prevention Framework builds on these early successes, ensuring that we have the tools to continue driving down scam losses and protecting Australians. We're sending a message to these criminals that Australia is not the place to conduct your illegal business.

This legislation is also forward-looking. It recognises that scammers are constantly adapting their methods, exploiting new technologies and finding new ways to deceive. That's why this framework allows for other sectors, such as cryptocurrency platforms and online marketplaces, to be brought under its umbrella in the future. It ensures we can respond to emerging threats and stay one step ahead of the scammers. Cryptocurrency scams, for example, have become a significant concern. Australians have lost millions of dollars to fraudulent schemes involving digital currencies, which are often promoted through social media ads that, once again, appear legitimate. These scams exploit the excitement and confusion surrounding new technologies, making them particularly dangerous. By including provisions to expand the framework as needed, the legislation ensures we can address emerging threats without delay. The futureproof nature of the legislation is critical in an era when scammers are always evolving. By creating a flexible framework that can adapt to include new sectors, it ensures a future government will not be caught off guard.

I'd encourage all those who listen to this speech or read it at a later time to compare our approach to scams of that of the former government. Not much happened under the Liberals in regard to scams. Their approach was essentially to say to victims that they were on their own—that they should have been smarter, done better or not fallen victim to the work of sophisticated criminals. Well, that's not our approach. Where we see a need to help Australians and keep their money safe, we'll step in. This legislation shows that we're listening to Aussies who have asked us to protect them from criminals and to help them protect their money. This legislation is about keeping Australians safe by ensuring the money they earn is protected from criminals and that, if they still fall foul of it, there are open and transparent rules on how to recoup lost money in circumstances that are outlined in this bill. To help people do that, extra funding has also been provided to the Australian Financial Complaints Authority to bolster their methods to help Australians recover lost funds.

We know that scams aren't just an Australian problem; they're a global challenge. Criminal networks operate across borders, targeting victims worldwide. What we need to do is make sure that Australia is no longer a soft target for these criminals to exploit our most vulnerable Australians. This legislation positions Australia as a leader in the international fight against scams. It supports intelligence-sharing between regulators, law enforcement and industry both here and overseas. It will ensure that Australia remains at the forefront of global efforts to disrupt scam models as they pop up across the world. At a global fraud summit earlier this year, Australia's approach was highlighted as a model for effective action. It builds on that recognition, ensuring that we continue to lead the way in protecting Australians. This legislation ultimately is about fairness. It's about ensuring the burden of scams doesn't fall solely on victims, and it's about making sure that every industry that profits from the digital economy also takes social responsibility to protect it. It's about holding everyone in the scam ecosystem accountable for their roles in preventing and responding to these crimes. Yes, banks should be held accountable, but telecommunications companies and, importantly, the companies behind social media, where most scams begin and end, absolutely have to step up, be part of this legislation and be held responsible by it. Here, we want to ensure we stand up for everyone's right to feel safe online, to trust the systems they rely on and to keep the money they've worked so hard to earn.

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