The Scams Prevention Framework Act 2025 has been passed by both houses of Parliament and commenced on 14 February 2025.

The Scams Prevention Framework (SPF) principles apply to all regulated entities. These principles are enforced by the ACCC as the SPF general regulator. The SPF principles are about governance arrangements relating to anti-scam actions, and preventing, detecting, reporting, disrupting and responding to scams.

A scam under the SPF is a direct or indirect attempt (whether or not successful) to engage an SPF consumer of a regulated service where it would be reasonable to conclude that the attempt:

• involves deception; and
• would, if successful, cause loss or harm including the obtaining of SPF personal information of, or a benefit (such as a financial benefit) from, the SPF consumer or the SPF consumer’s associates.

The Framework requires designated entities to prevent, detect, disrupt, respond and report scams and attempted scams.

Initially, the Government will designate banks, telcos, and social media companies under the Framework. These businesses will be subject to enforceable sector‑specific rules.

For example, the rules may include:

• Social media companies being required to verify advertisers on their platforms;
• Banks being required to confirm the identity of payees; and
• Telecommunications companies being required to detect and disrupt scam numbers sending texts and calls.

The Scams Prevention Framework empowers the ACCC to investigate potential breaches and take enforcement action where entities do not take reasonable steps to fulfill their obligations under these principles.

Businesses that do not meet their obligations under the Framework can face fines up to $50 million.

Where a business is unable to satisfactorily resolve a complaint, consumers will have access to a single external dispute resolution (EDR) body. The Australian Financial Complaints Authority (AFCA) will deliver EDR for the three initial sectors. AFCA will be able to consider the actions of each business connected to a scam complaint and award compensation having regard to the business’ proportionate responsibility for the loss.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.