The federal government has taken a significant step in Australia's fight against financial fraud, designating banking, telecommunications, and key digital platforms as the first sectors under the new Scams Prevention Framework (SPF) — and releasing draft industry codes and rules for consultation.
The move shifts the country from voluntary commitments to mandatory obligations, with designated sectors required to have systems in place by 31 March next year to prevent, detect, and disrupt scams.
"Scams are costing Australians billions, and the human impact is even greater," Assistant Treasurer Daniel Mulino (pictured left) said in a government announcement. "By working with industry, we're stopping scams earlier and protecting Australians' hard-earned money."
The banking sector's response has been broadly supportive — but with pointed caveats, particularly around the government's proposal to automatically reimburse verified losses below $3,000.
The Australian Banking Association argued any compensation must be tied to actual code breaches by designated businesses rather than functioning as a blanket transfer of losses.
CEO Simon Birmingham (pictured center) said the SPF built on protections banks had already put in place through the Scam-Safe Accord.
"Stopping consumers from being exposed to scams is the best way to drive down losses and make it harder for scammers to operate in Australia," Birmingham said in a media release.
The Customer Owned Banking Association raised a separate but related concern — that automatic reimbursement processes could themselves be exploited by criminal networks if not carefully calibrated.
COBA CEO Michael Lawrence (pictured right) also pressed for the framework to close gaps where scams actually originate.
"Scams don't start at the bank – they begin with a phishing email, a malicious link in a text, or a fraudster stealing your personal details," Lawrence said.
For brokers, the stakes are concrete. High-value scam losses can devastate a client's deposit savings or settlement funds at the worst possible moment — and the data reflects this risk.
Around 90% of scam losses involve individuals losing more than $5,000, according to the ABA. COBA data from the customer-owned banking sector shows 97% of losses stem from transactions over $1,000.
Telcos blocked approximately 109.9 million scam calls and 41.1 million scam SMS between October and December 2025 alone — yet nearly nine in 10 Australians still report frequently encountering scam attempts, most commonly via phone calls, SMS, and phishing emails.
The framework's effectiveness will ultimately depend on how consistently obligations are applied across all designated sectors. Stakeholders can provide feedback through the Treasury consultation process, with submissions closing 25 June.
Get the hottest and freshest property and mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
