Australia targets scams lifecycle with new prevention framework

The framework imposes obligations across digital platforms, banks, and telecoms.

Australia has introduced a scams prevention framework to tackle the growing complexity of financial crime, according to Andy White, Chief Executive Officer of AusPay. The initiative aims to address scams at every stage of their lifecycle by imposing obligations on key sectors, including digital platforms, telecommunication companies, and banks.  

“This is a whole new way of thinking about regulation of economic crime,” White stated. The framework’s industry-specific codes require all actors to address their role in preventing scams, with consistent higher-level obligations applied across sectors.  

White emphasised the need to extend the framework beyond banks to include payment service providers and internet service providers. “Criminals will simply move the funds from banks to non-banks,” he explained. Including internet providers would address scam vectors such as email, SMS, and calls.  

By incentivizing stakeholders to act early, the framework aims to reduce the number of scams reaching financial institutions. “You’re stopping the scams where they first start,” White said, highlighting that approximately two-thirds of scams in Australia and the UK originate on social media platforms.  

Financial institutions remain particularly vulnerable as they often serve as the endpoint for scams. White pointed to reimbursement mechanisms in the UK that require banks to compensate customers. However, the Australian framework seeks to minimise such risks by reducing the number of scams entering the payment system.  

Banks are also leveraging data and AI-driven tools to combat these threats. “They’re using wider data sets and applying machine learning to ensure the customer is paying who they think they’re paying,” White explained. Risk-based friction strategies further protect customers by verifying payments before completion.