Australia becomes the first country in the world to pass a bill requiring social media and telecommunications companies to 'proactively identify fraud'
On February 13, 2025,
ACCC welcomes passage of world-first scams prevention laws | ACCC
https://www.accc.gov.au/media-release/accc-welcomes-passage-of-world-first-scams-prevention-laws
Australia passes world-first scams prevention framework | news.com.au — Australia's leading news site
The Anti-Fraud Framework Bill gives the Australian Competition and Consumer Commission (ACCC) , a government body, more powers to investigate potential breaches of the law and to take enforcement action against businesses that fail to take reasonable steps to comply with their obligations under the law.
With the adoption of this bill, the ACCC will be able to require telecommunications companies, social media companies, banks and others to proactively detect and disrupt fraud, and report fraudulent activity. As part of the crackdown, social media companies will be required to verify the identity of advertisers, and banks will have to be able to identify the recipient of funds. Companies that fail to meet their obligations under this framework could be subject to fines of up to AUD 50 million (approximately JPY 4.8 billion).
The ACCC and Australian media have reported that this is the first such law in the world.
According to the ACCC, Australians are losing an average of A$100 each to scammers, more than double the amount lost in the US and the UK.
The adoption of the Fraud Prevention Framework Bill is expected to help reduce the number of frauds in Australia and protect the financial interests of Australians.
ACCC Deputy Chair Catriona Lowe said, 'Financial fraud poses an unacceptable threat to the Australian community and has had a devastating impact on hundreds of thousands of Australians. This bill is an important step in the fight against fraud, bringing together the public and private sector to develop solutions that can help tackle it and provide appropriate remedies for consumers.'
'Australia is tackling fraud from all angles, but the new bill prioritises preventing people from being scammed in the first place - Australia is leading the way in its comprehensive approach to fraud prevention,' the Australian Banking Association said in
While the bill has been welcomed, some have expressed concerns, such as 'further clarity is needed about the reasonable steps that covered companies must take, and there is a risk that a significant burden will be placed on them if no guidance is given.' It has also been pointed out that, although the bill was passed to provide relief to victims of fraud, it does not include any mandatory considerations that companies must take when compensating victims.
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