A coalition of consumer advocacy groups, financial counselling organisations and community legal centres have launched an open letter urging the Government to plug the glaring gaps in proposed scam protections.

The consumer groups calling for action include CHOICE, Financial Counselling Australia, Consumer Action Law Centre, Australian Communications Consumer Action Network, Financial Rights Legal Centre, Mob Strong Debt Help, Consumer Policy Research Centre, Consumer Credit Legal Service, Indigenous Consumer Assistance Network and Super Consumers Australia

The Government’s new Scams Prevention Framework, announced late last year by Assistant Treasurer Daniel Mulino, is a positive step towards protecting Australians.

However, the current proposals place no obligations on businesses where scammers are rife, like dating apps, email services, online marketplaces, superannuation funds and many others.

Since 2020, Australians have lost over $220 million to dating and romance scams alone. Romance scams can have a particularly devastating impact on victims, often targeting people experiencing vulnerability over long periods of time – causing catastrophic emotional and financial harm.

As protections tighten in some areas, scammers will be quick to shift to the unregulated platforms and payment pathways.

CHOICE head of policy, Morgan Campbell, said Valentine’s Day is a time for connection.

“That’s true for scammers, too. While we welcome the Government’s proposed scam protections, they leave common pathways for scammers wide open,” Mr Campbell said.

“A framework with such big and obvious gaps will be a treasure map for scammers. They’ll see where the weakest links are, they’ll exploit them, and Australians will keep losing money while scammers and big businesses cash in. It’s time for Minister Mulino to force businesses to break up with scammers, and fix the gaps in this framework.”

Consumer Action Law Centre CEO, Stephanie Tonkin, said crimes are cruel and deeply personal, and the $28 million lost last year represents real heartbreak – not statistics.

“We hear from people who’ve not only lost their life savings to a romance scam, but their trust, dignity and sense of self,” Ms Tonkin said.

“Most of these scams start on dating apps, yet incredibly they’re still missing from the proposed Scam Prevention Framework.

“We’re urging Assistant Treasurer Daniel Mulino to close this painful gap. Australians deserve protection wherever love – or the hope of it – takes them online.”

Australian Communications Consumer Action Network CEO, Carol Bennett, said anti-scam laws are needed to be as robust as possible, from the outset.

“Anything less, and emotional and financial distress for Australian consumers is bound to continue,” she said.

Financial Rights Legal Centre director of casework, Alexandra Kelly said placing the burden on a broken-hearted consumer – at the lowest point in their life – to fight to get their money back when they are the victim is “topsy turvy”.

“The onus should be on all businesses who platform scammers to close the loopholes – not the scam victim,” Ms Kelly said.