Government announces $14.7 million investment to help scam victims seek compensation
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Unfortunately, as we navigate the digital age, scams have become a standard part of our online experience, leaving many Australians feeling vulnerable and unsure of where to turn when they fall victim to these deceitful practices.
But there's a glimmer of hope on the horizon for those who scammers have duped as the federal government steps up its game with a new initiative to support scam victims.
In a significant move, the Albanese government has announced a $14.7 million investment to establish a streamlined process for scam victims seeking compensation through the Australian Financial Complaints Authority (AFCA).
This new pathway promises to offer an independent channel for those who have had trouble resolving their issues with banks, telecom providers, or social media networks.
Assistant Treasurer Stephen Jones has clarified that businesses must safeguard their customers, stating, 'Our scams crackdown will cut off the avenues scammers use to target Australians by setting a high bar for what businesses must do to prevent them.'
'We want victims of scams to know the government has their backs, and we want businesses to understand that they have a responsibility to protect Australians from these often devastating scammers.'
Under this new system, victims will have the opportunity to lodge claims against multiple entities.
For instance, if someone falls prey to a scam on social media and loses money, they could claim both the social platform and their bank should AFCA find that these entities did not implement sufficient protections.
This initiative is part of a broader push by the Albanese government to urge businesses, mainly social media platforms, to take more proactive measures in preventing Australians from being scammed out of billions of dollars each year.
In July, the government introduced new mandatory codes requiring social media companies, banks, and telecommunications companies to intensify their efforts against scams.
While overall scam losses have decreased, reports of scams on social media surged by 17 per cent in 2023.
This troubling trend underscores the importance of the government's latest measures.
In 2022 alone, Australians lost a staggering $2.74 billion to scams, highlighting the critical need for stronger protections and support for victims.
In other news, authorities issued alerts about a rise in scams targeting individuals who have already been victimised, promising financial recovery.
Victims are lured into paying upfront fees, sharing personal information, or making tax payments, believing they will recover their losses, only to be scammed again. You can read more about it here.
Have you or someone you know been affected by a scam? What measures are necessary to protect Australians from these fraudulent activities? Share your opinions in the comments below.
But there's a glimmer of hope on the horizon for those who scammers have duped as the federal government steps up its game with a new initiative to support scam victims.
In a significant move, the Albanese government has announced a $14.7 million investment to establish a streamlined process for scam victims seeking compensation through the Australian Financial Complaints Authority (AFCA).
This new pathway promises to offer an independent channel for those who have had trouble resolving their issues with banks, telecom providers, or social media networks.
$14.7m is being invested by the Albanese government to establish a pathway within the AFCA for scam victims seeking compensation. Credit: Shutterstock
Assistant Treasurer Stephen Jones has clarified that businesses must safeguard their customers, stating, 'Our scams crackdown will cut off the avenues scammers use to target Australians by setting a high bar for what businesses must do to prevent them.'
'We want victims of scams to know the government has their backs, and we want businesses to understand that they have a responsibility to protect Australians from these often devastating scammers.'
Under this new system, victims will have the opportunity to lodge claims against multiple entities.
For instance, if someone falls prey to a scam on social media and loses money, they could claim both the social platform and their bank should AFCA find that these entities did not implement sufficient protections.
This initiative is part of a broader push by the Albanese government to urge businesses, mainly social media platforms, to take more proactive measures in preventing Australians from being scammed out of billions of dollars each year.
In July, the government introduced new mandatory codes requiring social media companies, banks, and telecommunications companies to intensify their efforts against scams.
While overall scam losses have decreased, reports of scams on social media surged by 17 per cent in 2023.
This troubling trend underscores the importance of the government's latest measures.
In 2022 alone, Australians lost a staggering $2.74 billion to scams, highlighting the critical need for stronger protections and support for victims.
In other news, authorities issued alerts about a rise in scams targeting individuals who have already been victimised, promising financial recovery.
Victims are lured into paying upfront fees, sharing personal information, or making tax payments, believing they will recover their losses, only to be scammed again. You can read more about it here.
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