New scam laws put onus on banks and telcos, good for older people

The federal government has passed world-first legislation in a bid to protect residents from scams and the cyber criminals behind them.

The Scams Prevention Framework Bill 2025 will require designated entities – including banks, telcos and social media companies – to proactively detect and disrupt scams and report scam activity.

COTA Australia chief Patricia Sparrow says this is an “important step” in protecting older Australians.

“Older Australians are falling victim to scam activity at alarming rates, with over 62,000 reported incidents resulting in nearly $100 million in losses last year. These sophisticated scams are having a devastating impact on retirement savings,” Ms Sparrow said.

“This framework will ensure banks, telecommunications companies and social media platforms are held accountable for preventing scams and properly compensating victims when prevention fails, which is crucial.”

According to the latest Scamwatch data, Australians over 65 are the most impacted by scams, racking up $99.6 million in losses from a total of 62,147 reported incidents in 2024.

“This isn’t just about protecting older people – it’s about ensuring all Australians can participate in the digital economy with confidence, knowing their financial wellbeing is safeguarded.”

As part of the crackdown, social media sites will be required to verify its advertisers, while banks must be able to identify who a payee is when processing transactions.

Businesses that do not meet their obligations under the framework can face fines of up to $50m.

Related: Peak body calls for action to protect older Australians from scams | Older Australians’ concerns about online security being addressed | Keeping cash crucial for older Australians

In a statement, the Australian Banking Association (ABA) welcomed the passing of the new reforms they say will better protect Australians and help drive financial losses down.

ABA chief executive Anna Bligh said Australia was leading the way in its comprehensive approach to scam prevention and this was a significant moment in continued attempts to harden the country against scammers.

“Australia is tackling scams from all angles. This new framework prioritises preventing people from being exposed to scams in the first place,” Ms Bligh said.

“This is a game changer in the fight against scammers and will ensure all parts of the scams chain are held to account for their responsibilities to prevent, detect, report, disrupt and respond to scams.

Australian Competition and Consumer Commission (ACCC) deputy chair Catriona Lowe welcomed the legislation's passage through parliament, commenting that it would enhance protections across the economy by setting out consistent and enforceable obligations for businesses in key sectors where scammers operate.

“The financial crime-type scams present an unacceptable threat to the Australian community and have had a devastating impact on hundreds of thousands of Australians,” Ms Lowe said.

“This [legislation] is a critical step in the fight against scams – creating overarching principles that all members of designated sectors must comply with. We know scammers will exploit weak links in the system, so these principles are key to a consistent approach.”