Australia’s crackdown on scams could cost digital platforms and banks more than $100m
Australia’s crackdown on scams could cost digital platforms and banks more than $100m
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Treasury has estimated how much industries including telecommunications, social media and banks will likely need to fork out. Digital platforms and banks could incur more than $100m of costs to comply with new requirements to crack down on scams, according to modelling by the Treasury.
Treasury’s impact analysis found that banks – especially small and foreign-owned banks – were likely to fork out $101m in the first year and $32m each year thereafter to avoid multimillion-dollar fines for failing to prevent scams. The analysis found digital platforms were likely to incur $106m in costs in the first year and $42m each year thereafter; while telcos were expected to pay $22m then $14m a year.
Australians lost a record $3.1bn to scammers in 2022, with 2.5% of Australians – about half a million people – victim to scammers in that year alone. Under the reforms announced last year by the Albanese government, designated industries – which include telecommunications, social media and banks – must take reasonable steps to prevent, detect, report, disrupt and respond to scams or face fines.
The scheme includes mandatory reporting requirements to share intelligence about scams between businesses and the government. The reforms are expected to roll out immediately after the bill passes through parliament. Sign up for Guardian Australia’s breaking news email.
