Understanding your scam victim rights in Australia has never been more important. In February 2025, the Australian Federal Parliament passed the Scams Prevention Framework Act 2025, a world-first piece of legislation designed to hold banks, telcos, and digital platforms accountable for the scams that reach you. If you have lost money to a scam or know someone who has, this law could change what options are available to you.
This article breaks down what the new framework means in plain English, what businesses are now required to do, and what steps you can take if you’ve been caught out by a scam. This is general information only and not a substitute for personalised legal advice.
What Is the Scams Prevention Framework Act 2025?
The Scams Prevention Framework Act 2025 is Australian federal legislation that came into effect on 21 February 2025 after receiving Royal Assent. It forms part of the Competition and Consumer Act 2010 and sets out legally binding obligations for businesses in key sectors that scammers frequently exploit.
Before this law existed, there was no single consistent set of rules forcing businesses to protect their customers from scams. Protections were patchy, voluntary in many cases, and left most of the burden on everyday Australians. That is now beginning to change.
Which Businesses Must Comply?
The framework initially applies to three sectors:
- Banks and financial institutions
- Telecommunications providers
- Digital platform services, including social media networks and search engines
Other sectors may be added over time. The government has the power to expand the framework as scam threats evolve and new industries are identified as high-risk.
What Are Businesses Now Required to Do?
Under the new law, regulated businesses must meet six core obligations. These are commonly referred to as the SPF Principles, and they place real, enforceable duties on companies rather than leaving consumer protection as an afterthought. For more details on how this works in practice, the ACCC has published a full overview of the framework.
The six principles require regulated businesses to:
- Prevent scams from reaching consumers in the first place
- Detect scam activity and suspicious behaviour on their platforms or networks
- Disrupt scams when they are identified, taking timely and proportionate action
- Respond to scam reports from consumers and resolve disputes internally
- Report actionable scam intelligence to the ACCC in a timely manner
- Govern their anti-scam efforts by documenting policies and procedures
Businesses that fail to meet these obligations can face fines of up to $50 million. This is a significant step up from the largely voluntary industry arrangements that existed before.
What Do Scam Victim Rights in Australia Look Like Under This Law?
This is the part that matters most to you as a consumer. The new framework provides real avenues for scam victims to seek a remedy when a regulated business has not done its job properly. It does not guarantee compensation in every case, but it does guarantee access to a fair complaints process.
Internal Dispute Resolution
Every regulated business must have a clear and accessible process for consumers to report scam activity and raise complaints. This is the first step. If you believe a bank, telco, or platform failed to protect you from a scam, you should raise a formal complaint directly with them. They are legally required to have a mechanism in place to handle it.
External Dispute Resolution Through AFCA
If you are not satisfied with the outcome from the business, you can escalate your complaint. The Australian Financial Complaints Authority (AFCA) is being designated as the single external dispute resolution body for scam complaints across all three regulated sectors. This means one place to go, regardless of whether your complaint involves a bank, a phone company, or a social media platform.
AFCA is an independent service that is free to consumers and has the power to award compensation. While the full scope of AFCA’s role under the new framework is still being finalised, you can already lodge scam-related complaints against financial services firms today.
Taking Court Action
The law also allows consumers to take court action against regulated businesses that have not met their obligations. This is a more formal and potentially costly path, but it is available. If a business has clearly failed to take reasonable steps and you have suffered financial loss as a result, legal action may be an option worth exploring with a qualified Australian lawyer.
How to Protect Yourself and Report a Scam
Knowing your rights is one thing. Taking action is another. If you believe you have been targeted or have already lost money to a scam, here is what you should do.
First, contact your bank immediately and ask them to stop any transactions. The sooner you act, the better your chances of limiting any loss. Next, report the scam to Scamwatch, which is run by the ACCC’s National Anti-Scam Centre. Scamwatch collects reports from across Australia and uses them to disrupt scam operations and warn other consumers.
You should also check the Australian Government’s Moneysmart website for guidance on financial recovery options if you have lost money. Moneysmart is run by the Australian Securities and Investments Commission (ASIC) and provides straightforward, government-backed advice for people recovering from financial harm.
Keep records of everything. Screenshots, emails, transaction receipts, and any other communication related to the scam will be essential if you raise a formal complaint or seek legal advice.
What This Means Going Forward
The Scams Prevention Framework is a genuine shift in how Australia approaches consumer protection in the digital age. For the first time, the law places a proactive duty on large businesses rather than expecting individuals to shoulder all the risk on their own.
That said, the sector-specific codes that will spell out the detailed obligations for banks, telcos, and digital platforms are still being developed through consultation. The framework is law, but some of the finer operational details are still being worked through. This means the full practical impact for consumers will continue to unfold over the coming months and years.
If you want to understand your rights more broadly as a consumer, the Office of the Australian Information Commissioner (OAIC) is also worth checking, particularly if your personal information was exposed or misused as part of a scam.
Conclusion
Australia’s new scam prevention laws represent a landmark moment for scam victim rights in Australia. For the first time, banks, phone companies, and major digital platforms face real legal consequences if they fail to protect you. You now have clearer pathways to raise complaints, seek resolution, and in some circumstances pursue compensation through AFCA or the courts.
If you have been affected by a scam and are unsure of your next steps, speaking with a qualified Australian lawyer can help you understand your specific situation. You can also explore lawyer.com.au for more informative legal articles, covering the issues that matter to everyday Australians.
FAQs
1. Can I get my money back if I was scammed in Australia?
It depends on the circumstances. Under the new Scams Prevention Framework, if a regulated business such as a bank failed to take reasonable steps to prevent or disrupt a scam, you may be entitled to seek compensation through their internal complaints process or via AFCA. However, outcomes vary case by case, and there is no automatic right to a full refund. Getting legal advice is worthwhile if significant money is involved.
2. What is the Scams Prevention Framework Act 2025 in simple terms?
It is a new Australian law that forces banks, telcos, and major digital platforms to actively prevent, detect, and respond to scams rather than leaving that responsibility entirely on consumers. Businesses that do not meet these obligations can face substantial financial penalties.
3. Who do I complain to if my bank did not protect me from a scam?
Start by making a formal complaint directly to your bank using their internal complaints process. If you are not satisfied with the response, you can escalate the matter to AFCA, which is free to use and independent. AFCA has the authority to investigate and, in some cases, award compensation.
4. Does the new scam law cover social media scams?
Yes. Digital platform services, which include social media networks, are one of the three sectors initially covered under the Scams Prevention Framework. These platforms are now required to take reasonable steps to prevent scams from reaching users. The specific obligations for this sector will be detailed in a sector-specific code, which is still being finalised.
5. What should I do straight away if I think I have been scammed?
Contact your bank immediately to flag the issue and request that any pending transactions be halted. Report the scam to Scamwatch at scamwatch.gov.au and keep a record of all relevant communications and transactions. If the loss is significant, consider speaking with an Australian consumer law lawyer about your options under the new Scams Prevention Framework.