Tech companies, banks and telcos could face massive fines if they fail to protect their customers from scammers. They'll also be up for compensation for victims under new laws proposed by the Albanese Government.
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00:00Just weeks before buying his first property, Ilya Fomin lost $280,000 to a scam.
00:09It was such a huge shock, you do not feel much.
00:13Criminals stole his money after they emailed him impersonating his lawyer.
00:18He believes the two banks used to shift the funds could have done more.
00:22They didn't check neither the address nor the name and they just let the money go.
00:27His bank maintains it did nothing wrong.
00:29I believe that if our people had seen those red flags they absolutely would not have processed
00:34the payment.
00:35Banks will have to ensure that they are confirming the identity of a payee when a transfer is
00:41being made.
00:42With Australians losing billions every year, the government is demanding action from banks,
00:47telcos and tech companies.
00:49We'll ensure that Australia is leading the world in the fight against scams.
00:54New obligations will cover how to prevent, detect, report, disrupt and respond.
01:00If companies fail, they could be forced to pay compensation and fined up to $50 million.
01:07The banks pushed hard to have other sectors on the hook.
01:11Telcos will have to combat dodgy texts and calls and digital platforms verify advertisers.
01:17Both will also be liable.
01:19It's more likely to prevent scams from ever starting and it's a much fairer way of attributing
01:25liability.
01:28Consumer groups have reacted positively but are pushing to ensure most victims are repaid.
01:33A model that incentivises businesses to fortify their systems and protect their customers.
01:40Key details including exactly what this means for future scam victims is still being worked
01:45out.
01:46Despite that, the government wants to pass the laws this year.