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Australia’s Scams Prevention Framework: New Protections & Penalties
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March 12, 2025
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The financial services sector is facing increased regulation and enforcement aimed at enhancing risk management practices and protecting consumers.
The Scams Prevention Framework Legislation
A key development in this area is the Scams Prevention Framework, which sets clear expectations across five key governance principles:1
- Prevent
- Detect
- Report
- Disrupt
- Respond
Failure to comply with the framework can result in significant penalties, which could exceed $50 million.2
Who Needs to Comply?
The initial designated sectors that must adhere to this framework include:3
- Banking
- Telecommunications
- Social Media
Additionally, it is expected that superannuation funds will also be required to comply in the near future.4
Better Practices for Compliance with the Scams Prevention Framework
To demonstrate that reasonable steps have been taken to protect consumers, the impacted sectors should adopt better practices in systems and controls by learning from local and global peers.
Key Areas of Focus
- Enhancing fraud risk frameworks to strengthen scam prevention measures
- Ensuring detection systems are configured to identify scam typologies alongside fraud cases
- Documenting decision-making processes to provide clear justifications in regulatory discussions
FTI Consulting actively works with banks and superannuation funds to extend their fraud risk frameworks, ensuring they have effective controls in place to protect customers and members from scams. To learn more, contact Natalie Faulkner.
Footnotes:
1: “Scams Prevention Framework Bill 2025” Parliament of Australia, 13 February 2025
2: Ibid
3: Ibid
4: “Scams Prevention Framework – Protecting Australians from scams”, Page 2, The Treasury - Australian Government, January 2025
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Published
March 12, 2025
Key Contacts
Senior Managing Director, Leader of Australia Risk & Investigations