SCAMS REFORM NEEDS TO BE DONE RIGHT NOT RUSHED

Thursday, 7 November 2024: Communications Alliance, the peak body of the telecommunications industry, has called for further Parliamentary scrutiny of new scams legislation, saying reforms should be done right – not rushed.

“Australians are justifiably concerned about scams, and telcos have taken action to block more than 2 billion scam calls and almost 700 million scam messages since 2020. While this is a solid start, we recognise the value of additional legislative and regulatory protections against scams, including taking a cross-sector approach,” said Comms Alliance CEO Luke Coleman.

“The Scams Prevention Framework is a significant legislative reform which should be given due consideration by Parliament – it should be done right, not rushed,” he said.

“Telcos already face rising compliance costs due to new red-tape, and the SPF is expected to add more than $228 million in new compliance costs in its first year, then $88 million annually across all impacted sectors. These new costs will hit hard when many telcos are already struggling to make sustainable returns on investment.”

“Unlike banks and digital platforms, telcos are already subject to scams regulation which is enforced by the ACMA – the limited consultation period for the draft legislation has been insufficient to allow for proper scrutiny, and the Bill should be considered by a Parliamentary Committee.”

Comms Alliance welcomed changes since the Exposure Draft, including added flexibility to include measures in subordinate rules and sector codes rather than primary legislation, additional clarity around compliance, and a statutory review after 3 years.

The industry body also supports the introduction of a mandatory SMS Sender ID Register to further enhance telcos’ abilities to combat SMS-based scams.

“There are positive signs that actions by Government and industry are starting to turn the tide against scammers. Financial losses to scams decreased by 13% between 2022 and 2023, the median amount lost to scams decreased by 50%, and reporting of scams increased by more than 18%. But there is more to do, and the telecommunications industry is committed to keeping up the fight against scammers,” Mr Coleman said.