Consumer advocates are demanding a simple, victim-focused approach to scams, not bureaucracy.

A coalition of advocacy groups is urging the Albanese Government to revise its proposed Scams Prevention Framework (SPF), pushing for a presumption of reimbursement for scam victims. 

They warn that without this change, the SPF will not adequately protect Australians from the rising threat of scams.

The current draft of the SPF has come under fire for placing too much responsibility on victims while allowing large corporations to avoid accountability. 

Consumer Action Law Centre (CALC) CEO Stephanie Tonkin says victims could face a 30-step process that might take up to two years to resolve. 

“What's worse than this delay is that there is no guarantee of victims getting any money back at the end,” Tonkin said. 

The advocates propose a streamlined, Australian-first reimbursement model, which would allow victims to recover their money within weeks, with businesses later dividing liability among themselves. 

Tonkin says this approach would push businesses to improve their scam prevention efforts.

“Being on the hook for reimbursement is the best incentive for business to lift its prevention game,” she said. 

ACCAN CEO Carol Bennett echoed these concerns, criticising the SPF for demanding too much from victims while large companies like banks and telcos remain unaccountable. 

“The best way to make [decisive action] happen is to include a presumption of reimbursement,” Bennett said.

Drew Macrae from the Financial Rights Legal Centre has labelled the proposed framework “over complex and illogical”. 

Rebekah Sarkoezy from Super Consumers Australia has warned that scammers would exploit the superannuation sector before protections were in place.

“"Consumers need their collective $3.9 trillion in superannuation savings to be protected from scammers now,” she said.

The coalition’s submission includes seven key recommendations, including a streamlined reimbursement process and stronger obligations for businesses to prevent scams. 

They also want sector-specific scam codes, starting with superannuation, to be implemented within 12 months of the SPF becoming law. 

Additionally, they call for faster internal dispute resolution times, capped at 10–20 days, and stronger penalties for companies that allow scams to proliferate.

Consumer advocates believe that, with these changes, the Federal Government has a chance to make Australia a global leader in scams prevention. 

The full submission is accessible in PDF form, here.

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