Proposed new scam rules that will reshape how banks, telcos, and digital platforms protect customers from fraud are set to impact the wider financial services industry, including mortgage brokers. These changes sit within the federal government’s new Scams Prevention Framework, now out for public consultation.
The Australian Banking Association (ABA) has welcomed the release of draft industry designations and a framework for scams code obligations, calling it a critical step towards a stronger, whole‑of‑ecosystem defence against scammers. Banks, telecommunications providers and major digital platforms (including social media, search and instant messaging services) are slated to be the first sectors formally regulated under the framework by mid 2026.
ABA CEO Simon Birmingham (pictured) said the draft materials were “the next piece of the puzzle” in efforts to drive scam losses down and make it harder for criminals to target Australians.
“Australia is pursuing a world first and world leading approach to scam prevention, where criminal scammers will face tougher barriers from all angles,” Birmingham said in a media release. “Scams are a global scourge that no government nor any single industry can solve alone, which is why Australia’s all-encompassing ecosystem framework is essential for success.”
The government has already legislated the Scams Prevention Framework Act to underpin this approach with strong penalties and a coordinated, whole of economy response to scam activity.
A key shift in the draft framework is the explicit inclusion of digital platforms, such as social media and online advertising channels, which Birmingham says can “play the greatest role in stopping scams at the source”.
He pointed to recent reports about the role of large tech platforms in facilitating scam advertising.
“New technologies, especially the abuse of digital platforms, place consumers at ever greater risk and banks under greater pressure on how to help protect their customers," Birmingham said. "The most important feature of this framework is the inclusion of digital platforms, which are abused by scammers, and can play the greatest role in stopping scams at the source.”
The ABA chief referenced documents uncovered by Reuters that allege Meta has been reaping significant revenue from scam related ads:
“Documents recently uncovered by Reuters show that Meta has been generating around 10% of its total annual revenue from scams advertisements, knowingly profiteering by charging scammers more for their online ads," Birmingham said. “Meta’s secret receipt of US$16 billion per annum in scam-based advertising revenue is proof of why these codes must force digital platforms to stop users from being exposed to scam ads.”
Under the government’s plan, each sector will have its own mandatory industry code tailored to its particular scam vulnerabilities, lifting the minimum standard of protection expected from banks, telcos and digital platforms.
Under the draft scams code, social media companies and other digital platforms would face new obligations to verify and monitor advertisers, especially those promoting financial products and services.
“Proposed obligations to require social media companies to properly verify the identity of advertisers on their platforms and block scammers from those platforms would be a huge boost in protection from scammers for Australians,” Birmingham said.
The current consultation will also test whether the draft designations cover the right services within these sectors, with businesses and consumers invited to help shape the detailed codes and rules ahead of a more formal consultation phase in 2026.
Single complaints pathway via AFCA
The federal government has also confirmed its intention to authorise the Australian Financial Complaints Authority (AFCA) as the central place for customers to access free dispute resolution under the new scam safeguards.
Birmingham said it was important that digital platforms and telcos, not just banks, are held accountable when they fail to meet their consumer obligations.
“Banks already work with AFCA and we welcome the intent for digital platforms and telcos to be held to account where they have failed to meet their obligations to consumers, including potential avenues for redress where obligations have not been met,” Birmingham said.
Consultation is now open on AFCA’s draft authorisation, which will determine how these new dispute arrangements sit alongside existing industry level complaint processes.
ABA says the banking sector has long backed a model that places strong responsibilities on all parts of the scams ecosystem and is already aligned with much of what’s in the draft code.
“The banking sector have long supported an approach that places strong industry-specific obligations on all parts of the ecosystem," Birmingham said. "We will now closely review the details of these draft codes ensuring banks continue to strengthen the arsenal in our toolkit to protect our customers from scams.
“The Scam Prevention Framework will build on the world-leading safeguards Australia’s banks have already put in place through the banking industry’s Scam-Safe Accord.”
According to Birmingham, many of the proposed measures are already embedded in banks’ existing controls, including enhanced payment warnings and verification tools.
“Banks are already meeting many of the requirements outlined in this draft code including offering name-checking technology and providing targeted warnings about scam risks to customers before they make high-risk payments,” he said.
Birmingham added that banks will play an active role in the consultation phase to ensure the new rules are workable and deliver real benefits for consumers.
The government says this work complements broader anti-scam efforts, including the creation of the National Anti-Scam Centre, takedown of thousands of scam websites, and measures to curb brand impersonation in texts and invoices.
Public submissions on the current Treasury consultation are open until 5 January 2026.
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