As Australians, we value fairness, but there may be some gaps when it comes to protecting our finances.

The government's Scams Prevention Framework (SPF) has faced criticism for not providing enough compensation for scam victims, especially for those in vulnerable groups.

While the SPF is seen as a step forward, it has been noted that more could be done, particularly in comparison to other countries' approaches.


As we approach the end of the parliamentary term, politicians are gearing up for the final two weeks before the election.

The Labor government has a narrow window of just seven days to pass this crucial legislation.

Despite the Labor-dominated committee's recommendation to pass the Bill, independent senator David Pocock has raised concerns that the SPF does not provide clear pathways for resolving disputes internally or externally.


Senator Pocock's observations are alarming, especially considering the lengthy process victims may face.

‘Customer journey mapping prepared by consumer groups in response to an exposure draft of the SPF Bill suggests that a scam complaint may take up to two years to resolve,’ he cited.

‘This time frame is clearly unacceptable, especially in cases where victims have lost life-altering amounts of money to scams.’


The senator's critique highlights the SPF's 'biggest shortfalling' as its approach to compensating scam victims.

He advocated for amendments, including a presumption of compensation for entities that fail to meet their obligations.

In cases where multiple entities are at fault, the one deemed most responsible should expedite compensation to the victim, except for the victim's gross negligence.

Coalition senators Andrew Bragg and Dean Smith have also voiced their dissatisfaction, accusing the government of procrastination and a lack of detail.

‘The parliament, regulated entities, consumers and scam victims are having to take on most of the detail which has been left to future prescriptive industry codes, rules and designations,’ they said.

‘They are expected to wave this bill through and hope for the best.’


Despite these criticisms, the report supporting the SPF suggests it will bring about comprehensive economic reform.

It aims to address the current 'piecemeal and inconsistent' scam protections and introduce hefty fines of up to $50m for noncompliance through mandatory industry codes.

If passed, the Bill would also enhance the powers of regulators to enforce the SPF.

It would provide additional funding to the Australian Financial Complaints Authority (AFCA) to establish external dispute resolution rules to assist victims.

This legislation is particularly urgent given that Australians lost at least $2.74 billion to scams in 2023.

Nearly half of that figure ($1.3 billion) was attributed to investment scams—fraud that disproportionately affects older Australians.


As members of the Seniors Discount Club, we must stay informed about these developments and understand the protections available to us.

We must advocate for more decisive measures that ensure swift and fair compensation for scam victims.

After all, it's not just about the money; it's about maintaining trust in the systems that safeguard our financial well-being.
Have you or someone you know been affected by a scam? What kind of support and compensation should be in place for victims? Feel free to share your thoughts and opinions in the comments below.