In a proactive move to address the growing concern of cryptocurrency scams, Australia’s Department of the Treasury has unveiled a “Proposed Scams Code Framework.” This consultation paper, announced in November by Assistant Treasurer Stephen Jones and the Minister for Communications Michelle Rowland, aims to establish a clear and comprehensive framework to combat various types of scams.
The proposed framework seeks to delegate roles and responsibilities to both government and private entities, with a specific focus on addressing scams in the banking and cryptocurrency sectors.
The cornerstone of Australia’s new approach to combating scams is the adoption of sector-specific codes and standards. Under this framework, each industry sector, including banking and cryptocurrency, will have its own set of mandatory codes designed to prevent, detect, disrupt, and respond to scams effectively. This approach recognizes the unique characteristics and vulnerabilities of different sectors while providing tailored solutions to address the evolving threat landscape.
Australia’s scam prevention framework for key sectors
The “Proposed Scams Code Framework” aims to ensure that key sectors in the scams ecosystem are well-prepared to combat fraudulent activities. This comprehensive approach includes sharing intelligence on scams across and between sectors, fostering collaboration, and leveraging collective expertise to protect consumers and businesses.
The framework outlines three primary categories for assigning codes and standards based on the sectors most frequently targeted by scammers:
Banking sector
Given the prevalence of financial scams, the banking sector is among the first to receive a dedicated set of codes and standards. These regulations will empower financial institutions to strengthen their fraud prevention measures and respond effectively to potential scams, ultimately safeguarding the interests of their customers.
Telecommunications providers
Telecommunications providers play a crucial role in preventing scams related to phone calls and text messages. The proposed codes and standards in this category will equip telecom companies with the tools and protocols necessary to combat fraudulent communications and protect their subscribers.
Digital communications platforms
Digital communication platforms, including social media and email services, have become breeding grounds for various forms of scams. To address this, the framework proposes industry-specific codes and standards to bolster the defenses of these platforms against scams.
Future sectors
Acknowledging the rapid growth of the cryptocurrency market and the emergence of nonfungible tokens (NFTs) and related trading platforms and marketplaces, the framework introduces a “future sectors” category. This category aims to address scams specific to cryptocurrencies and digital assets, ensuring that the evolving landscape of blockchain-based finance is adequately protected against fraudulent activities.
Collaborative effort
The “Proposed Scams Code Framework” underscores the collaborative approach between government and private entities in tackling scams. By assigning clear roles and responsibilities, this framework promotes a unified effort to combat fraudulent schemes, thereby enhancing the overall security and trust in the financial and digital sectors.
