News

11 September 2024

Thank you, Mr Speaker. Scams are everywhere. We get random phone calls claiming to be from Melbourne or somewhere in Queensland, we get text messages of 4am in the morning saying we need to pay our tolls urgently at the link provided. 96 per cent of Australians were exposed to scams in the five years up to 2021 alone. That is increasing. In 2023, we lost some $2.74 billion to scammers and that is more than $5,200 per minute. In the UK, banks are now required to reimburse victims where they have been tricked to authorise a payment, generally by masquerading as a legitimate business or person. Meanwhile in Australia, Banks refuse and are not required to refund victims. It is vital for the government to force financial institutions to increase the friction between financial transfers to enable tracking and recovery of funds by victims.

I regularly hear of those who have been scammed in Warringah. They get in contact with my office. They are distressed. They almost always have no way to seek redress or to get their money back. One constituent's son had his house deposit of just over $100,000 scammed from them from someone impersonating his lawyer. In an era where bank checks are becoming a thing of the past and so many transactions are done electronically, it is absolutely vital that we increase friction and make financial institutions more responsible which will make them take action to limit scams. I am glad to say some Northern Beaches seniors are not taking scams lying down. They are fighting back because too often we think scams are happening to older Australians who maybe are not so familiar with electronic means but it is happening to all age groups - young people in particular, young professionals who are getting scammed in relation to funds they simply cannot afford to lose. We had locally great coverage in the Manly Observer in the lead up to last Christmas showing how Manly Computer Pals ran tutorials for seniors to help them avoid possible scams and raise their own digital literacy. We need to do more of that - more information and education to make sure we protect Australians from scams.

I know the government is responding. They have established the National Anti-Scam Centre, and there is work to introduce the mandatory codes framework. But, consumer groups are calling for the government to go further, and make financial institutions liable for their customers' scam losses as they are ultimately facilitating the money being transferred and they are the ones with visibility on who is receiving the funds. They have the capacity to increase friction and ensure recovery of funds and if they are made liable to reimburse funds they will be motivated to put greater protections in place for consumers. Losses from scams are now so great and frequent, the government must act. We are seeing New Zealand and Singapore moving in the direction of the UK by introducing measures of greater liability of financial institutions. The government is moving on mandatory industry codes and that is welcome. But, alongside that and enforceable codes, consumer groups are calling for mandatory reimbursements of consumer losses by financial institutions and as I've said, this will incentivise them to do better to create the friction and better recovery. A fair and simple dispute resolution pathway for consumers and a mechanism for banks to recover the cost of scam losses from other bodies.

Time is of the essence in the sector. I would say constituents there are basic things you can all do to protect yourself from scams and to protect your loved ones. The key three steps to remember - first, stop. Don't give money or your personal information to anyone if you are unsure. Scammers will create a sense of urgency. Don't rush to act. Take your time and don't give money or personal information. Secondly, think. Ask yourself - could the call or text to be fake? Scammers pretend to be from organisations or people you know and trust. All too often for parents, it will be your children. Contact the organisation through means that you rely on, that you source independently, through means that you trust so that you can verify if the call is real or not. If you are not sure, hang up. Thirdly, protect. Act quickly if something feels wrong. Trust your gut. Contact your bank immediately if you have authorised a transfer or if you have lost money in a scam. If you have provided personal information, call ID Care on 1800 59 51 60 to get some protections. It is vitally important that we protect Australians and their hard-earned money from the scams.