Australian Treasury Proposes 'Scams Code Framework' to Curb Banking and Cryptocurrency Scams
Summary:
The Australian Department of the Treasury has proposed a 'scams code framework' to combat scams, including those in banking and cryptocurrency. The framework was revealed in a consultation paper and suggests implementing industry-specific regulations. It identifies three main targets: banks, telecommunication providers, and digital communication platforms, while also considering 'future sectors' including cryptocurrencies and non-fungible tokens. The proposal comes in response to the $3.1 billion lost to scams in 2022, a marked 80% increase from 2021. The Treasury will accept feedback on this proposal until January 29, 2024.
Australia's Department of the Treasury has proposed a 'scams code framework' which contemplates implementing specific regulations and standards for banking and cryptocurrency scams, and more. This follows the ongoing endeavors of the Australian Competition and Consumer Commission (ACCC), a treasury regulatory authority, which annually promotes the Scams Awareness Week campaign to fight scams. The Treasury has published a consultation paper that discloses Australia's intention to impose compulsory industry codes for various scam types.
Announced on November 30 by Assistant Treasurer Stephen Jones and Communication Minister Michelle Rowland, the "Proposed Scams Code Framework" consultation paper is designed to allocate explicit roles and responsibilities to both governmental and private sectors in the fight against scams. It entails ensuring that vital sectors in the scams ecosystem adopt measures to anticipate, pinpoint, interrupt, and tackle scams, alongside facilitating the exchange of scam-related intelligence both within and between sectors, as explained by the Treasury.
The designed framework suggests three overarching areas for application of codes and standards, focusing on sectors identified as prime targets for defrauders, namely banks, telecommunication providers and digital communication platforms. It also broaches a 'future sectors' category assigned to handle cryptocurrencies, non-fungible tokens (NFTs), and the associated trading platforms and marketplaces.
According to the Treasury, Australian consumers and businesses suffered a hefty loss of at least $3.1 billion due to scams in 2022, marking an 80% surge from 2021. Despite recent attempts on the part of the Australian government to roll out several initiatives to combat frauds, the existing scattered efforts have proved to be lacking in efficiency to curb scams effectively.
The envisaged mandatory industry codes aim to specify the duties of the private sector regarding scam operations. Currently, the Australian Securities and Investments Commission (ASIC), the ACCC-led National Anti-Scam Centre (NASC), the Australian Communications and Media Authority (ACMA), and specialized support services are collaboratively striving to fend off scams in Australia.
The Treasury intends to entertain comments on this consultation up to January 29, 2024.
Published At
11/30/2023 6:12:44 AM
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