Technology companies say they should not be made to compensate victims of scams on their social media platforms, and have pointed the finger at banks in a submission to a parliamentary committee examining the government’s proposed Scams Prevention Framework.

The comments are the latest development in the saga around the planned bill, as a blame game plays out between banks and social media platforms.

The proposed reforms would impose fines of up to $50 million on banks, mobile networks, and social media companies which fail to act on preventing scams.

Social media companies point the finger at banks, telcos

Digital Industry Group Inc. (DIGI), an industry association whose members include the likes of X, Meta, TikTok, and Snap, sought to downplay the responsibility of social media platforms in a submission to the committee on 24 December 2024.

In the submission, DIGI said it was supportive of an economy-wide approach, as well as strengthening accountability in the digital industry.

“However, it is important to emphasise that digital platforms, including social media services, are not an equal vector as the banking and telecommunications sector in relation to scams,” it told the committee.

“While scammers can employ online forums, their final step always involves theft through financial services after securing the victim’s financial information, 100 per cent of scams involve a financial service.

“Focusing anti-scam interventions on banks, including liability would be simpler, easier for consumers to understand, and more effective.”

A DIGI spokesperson told Information Age the submission also highlighted 2023 Scamwatch data which showed text messages were the most popular method of choice for scammers (34 per cent), followed by phone calls (27 per cent).

Only 5.8 percent of incidents came from online forums, which included a wide range of websites, of which social media was a quantifiably unknown subset.

The National Anti-Scam Centre reported Australians lost almost $3 billion to scams in 2023.

Banks have long argued social media firms have not done enough to help fight scams, while both banks and telecommunications providers have asked the federal government to apportion proportionate liability on each industry.

Govt kicks off scam awareness campaign

The federal government launched a new scam awareness campaign earlier this month, encouraging Australians to “stop, check, and protect” to keep themselves safe.

The 10-week campaign began 13 January and will be shown across television, online video, and social media.

It would be supported by a range of other initiatives to promote scam awareness amongst vulnerable groups including older Australians, First Nations peoples, and culturally and linguistically diverse communities, the government said.

Assistant treasurer and minister for financial services, Stephen Jones, said the campaign was critical to arming Australians with tools and tips to keep their money safe from scammers.

“The Albanese government has made scams a priority because we get the financial and emotional turmoil victims face and we want to rid Australia of this scourge,” he said.

“Anyone can be a target of a scammer, so whether you’re 20 or 65, everyone should stay scam alert.”

CEO of the Australian Banking Association, Anna Bligh, welcomed the launch and argued banks were implementing more technologies to protect customers.

“Our industry fully backs the clear messaging of this campaign,” she said.

“If something doesn’t feel right, make sure you stop, check and protect yourself from scams.”