Australia's Treasury has introduced a consultation paper proposing a novel framework to address fraud targeting consumers and businesses. This framework contemplates the implementation of sector-specific codes and standards aimed at combating scams prevalent in various sectors, including banking and cryptocurrency. The proposal complements the ongoing efforts of the Australian Competition and Consumer Commission (ACCC) to combat scams, particularly through its annual Scam Awareness Week initiative. Notably, the plan outlines the intent to mandate industry-specific codes for different scam types.
Assistant Treasurer Stephen Jones and Communications Minister Michelle Rowland unveiled the "Proposed Scam Code Framework" consultation paper on November 30. The primary objective is to provide comprehensive guidance to both governmental and private entities in their battle against scams, outlining distinct roles and responsibilities. As articulated by the Treasury, this involves establishing measures to prevent, detect, disrupt, and respond to fraudulent activities, emphasizing the sharing of fraud intelligence across relevant departments. The proposed framework categorizes allocation codes and standards into three main areas: banking, telecommunications, and digital communication platforms. Additionally, it includes a category labeled "Future Industries," encompassing cryptocurrencies, non-fungible tokens (NFTs), and associated trading platforms and markets.
Emphasizing the gravity of the situation, the Treasury highlighted that in 2022, Australian consumers and businesses collectively lost approximately $3.1 billion due to fraudulent activities, representing an 80% surge from the previous year. Despite recent government initiatives aimed at addressing fraud, existing strategies have proven inadequate in curbing this significant rise in fraudulent activities.
As part of the proposal, a forthcoming mandatory industry code will delineate the responsibilities of the private sector concerning fraudulent activities. Presently, the National Anti-Fraud Center (NASC), a collaboration between the ACCC, the Australian Securities and Investments Commission (ASIC), the Australian Communications and Media Authority (ACMA), and professional support services, is actively engaged in combating fraud across Australia.
