BRIDGET BRENNAN:
Well, anyone targeted by scammers could soon find it easier to get all or some of their money back, with the government announcing plans to create a single, one‑stop process to seek compensation. Joining us from Sydney to explain more is the Assistant Treasurer, Stephen Jones. Welcome back to News Breakfast.
STEPHEN JONES:
Good to be with you, Bridget.
BRENNAN:
Well, scams are really wreaking havoc on the lives of so many Australians. Why are people finding it so difficult to get some of their money back?
JONES:
At the moment, there’s no clear obligations on either the banks, the telecommunications companies or the social media platforms. And all of these businesses have got a key role in that scam production chain. We’re planning to introduce laws over the next few weeks which will make clear the obligations of banks, telecommunications companies, social media platforms and have a single front door for redress, so that consumers know where to go and there are clear rules for redress, clear rules for compensation, and the capacity of the tribunal, the Australian Financial Complaints Authority, to deal with that. So, we’re providing them with an additional $14 million to ensure that they can beef up their capacity to deal with consumer demand. So, looking at obligations, looking at a pathway to have redress.
BRENNAN:
Because there’s so much shame surrounding scams, and there shouldn’t be, but obviously people feel devastated and embarrassed when this happens to them. Do you think Australians know that they can even seek redress when this happens?
JONES:
We know that there’s significant under reporting and we know that the financial harm is just one aspect of it. There’s a lot of shame, as you say, and a lot of emotional distress that goes with having been scammed. I’m trying to normalise that. I’m trying to say, you know what, there are millions of people who are affected by this. It’s an international problem. It’s not just an individual problem. Everyone needs to take responsibility, including those key institutions, normalise reporting and ensuring that everyone lifts their standards and their cautions and care, including individuals. But importantly, having a clear pathway for seeking redress and much more clarity around the obligations that sit on those key institutions in that scam production cycle. So, the plan that we’re bringing into Parliament, the legislation, is all about prevention, but ensuring that there are clear pathways for redress as well, pathways that don’t exist at the moment.
BRENNAN:
What penalties will there be for social media companies and banks if adequate protections aren’t put in place to prevent scams?
JONES:
Significant penalties of up to $50 million for failing to meet the new obligations that will be introduced into the law. You know what, I don’t want us to have to levy these penalties. I want these businesses to lift their standards up so Australians aren’t being bombarded by these scams, aren’t being exposed to the dangers and harms of scams. It’s always better to have prevention rather than compensation. So prevention is the number one focus. But pathways for redress, pathways for penalties and fines and pathways for compensation as well.
BRENNAN:
Well, look, it’s welcome news for so many, I’m sure. And just quickly, Stephen Jones, there is an alert out at the moment, isn’t there for a particular type of email scam targeting Australians?
JONES:
Yeah, we’ll, know. Thousands of people have received a pretty obnoxious email alerting them to the suggestion that the scammer has got videos or compromising photographs of them. And they’ll be trying to build up a sense of legitimacy by including birth dates and other things in the email that they’ve got through other data breaches. Let me be quite clear. This is a scam. It’s false. They don’t have the videos, they don’t have the photographs. They’re trying to get you to upload money into a Bitcoin platform to provide bribes – sorry – to provide money to the scammers. Don’t fall for it. Delete the email and provide the information to Scamwatch. This is a scam, just another one of the obnoxious and horrendous things that these criminals are doing and distributing them in Australia and trying to rip Australians off millions and millions of dollars.
BRENNAN:
Very important warning, Stephen Jones, have a nice day and thanks for talking to us this morning.
JONES:
Good to be with you.